Crypto Businessman Pleads Guilty — Admits To Enabling Scammers, Drug Traffickers Launder Millions of Dollars By Benzinga

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Crypto Businessman Pleads Guilty — Admits To Enabling Scammers, Drug Traffickers Launder Millions of Dollars

Published Sep 07, 2023 07:27 Updated Sep 07, 2023 08:40

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Crypto Businessman Pleads Guilty — Admits To Enabling Scammers, Drug Traffickers Launder Millions of Dollars

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Benzinga - The owner of a cryptocurrency-cash exchange company, Charles James Randol, has admitted to aiding in money laundering activities, according to the United States Department of Justice (DOJ). This admission came on Monday, as Randol acknowledged his role in enabling scammers and drug traffickers to launder millions of dollars through his enterprise.

What Happened: Randol, a 33-year-old entrepreneur, is the owner of Digital Coin Strategies LLC, a virtual currency money services business. On Monday, Randol pleaded guilty to a single-count charge of failing to maintain an effective Anti-Money Laundering (AML) program. This crime could lead to a maximum sentence of five years in federal prison.

Randol allegedly operated his business from October 2017 to July 2021, offering cryptocurrency-cash exchange services for a commission. Despite claiming compliance with federal laws and registration with the Financial Crimes Enforcement Network, Randol admitted to facilitating suspicious currency exchange transactions and hiding them from law enforcement.

Randol’s business practices contravened the Bank Secrecy Act and his company's AML policy. He failed to verify the identity of customers engaging in transactions over $9,999 and conducted Bitcoin-for-cash transactions with anonymous individuals without due diligence. This non-compliance facilitated criminals in laundering millions of dollars through his business, according to the statement.

See Also: Are Cryptos On Brink Of Collapse? Expert Warns Of Sell-Off As Bitcoin Trades Flat

Why It Matters: The Randol case follows other high-profile cases involving cryptocurrency and money laundering.

In August, Ilya "Dutch" Lichtenstein, a New York resident, confessed to a 2016 cyberattack on cryptocurrency exchange Bitfinex, resulting in the theft of approximately $4.5 billion worth of Bitcoin (CRYPTO: BTC). Lichtenstein also admitted to laundering the stolen Bitcoin.

Such incidents have led to critics questioning the role of cryptocurrencies in financial transactions. In June 2023, "Black Swan" author Nassim Nicholas Taleb stated that Bitcoin is not even a suitable tool for money laundering, calling it nothing more than a fad.

Photo Courtesy: Mykhailo Pavlenko On Shutterstock.com

Read Next: Until 2016 it was illegal for retail investors to invest in high-growth startups. Thanks to changes in federal law, this Kevin O’Leary-Backed Startup Lets You Become a Venture Capitalist With $100.

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Crypto Businessman Pleads Guilty — Admits To Enabling Scammers, Drug Traffickers Launder Millions of Dollars

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