Los Angeles Bitcoin Trader Faces 30 Months In Jail For Illegal Money BusinessJune 11, 2018 6:20 pm
Two-and-a-half years behind bars awaits a Los Angeles bitcoin trader for operating a business prosecutors say is an illegal money transmitting business, CoinDesk reported Monday.
Theresa Tetley, 50, who worked under the name “Bitcoin Maven,” earned at least $300,000 per year from trading bitcoin on Localbitcoins.com during a three year period beginning in 2014, NBC Los Angeles reported. In addition, she made transactions during the same period worth from $6 million to $9.5 million.
Tetley’s activities “fueled a black-market financial system in the Central District of California that purposely and deliberately existed outside of the regulated bank industry.” – Los Angeles Prosecutor’s Office
Tetley has entered a guilty plea to operating an unregistered money transmission business and exchanging almost 80 BTC for $70,000 in one
transaction prosecutors allege involved the proceeds of drug trafficking, court documents reveal.
Federal prosecutors also hope to seize 40 BTC (currently worth $270,000), $292,264 and 25 gold bars seized by law enforcement agents in March, according to the report.
Tetley’s case is not the first incident of a bitcoin trader getting in trouble, CoinDesk reported.
In December 2017, a Detroit bitcoin trader was sentenced to 366 days in jail for similarly operating an unlicensed money services business, the report said. Sal Mansy funneled bitcoin transactions – also using localbitcoins.com – through a corporation he owned, ultimately conducting $2.4 million-worth of bitcoin transactions over a two-year period.
In another case linked to Localbitcoins last May, father and son trading team Randall and Michael Lord received jail sentences of 106 months and 46 months, respectively, for running an unlawful money business. Michael Lord also pled guilty to a charge involving narcotics distribution.
– WN.com, Jack Durschlag