Illinois Man Gets 4-Year Prison Sentence for Illegal Bitcoin Exchange

An Illinois man, John D. Powell,  a four-year prison sentence for illegally operating a Bitcoin exchange. He will also serve three years of supervised release after his jail term.

Powell reportedly handled over $3 million for traders on the exchange during an 18-month period ending in February. He pleaded guilty to two counts of operating an unlicensed money service business in July. He was sentenced by Chief US District Judge James E. Shadid of the United States District Court for the Central District of Illinois last week.

Prosecutors say that the exchange afforded Bitcoin even more anonymity than it already enjoys through allowing users to exchange bitcoins for cash.

Bitcoin exchanges based locally in the US are a rarity. FinCEN requirements for registration as a money services business can be onerous, as separate registration is required for each state where operations exist.

DC Magnates is currently working to uncover the name and other details of the exchange.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *