• Days
  • Hours
  • Mins
  • Secs
  • Tue, 17 Sep 2019, 08:18 AM
  • All times are UTC
  • Edition:
Copy link
Increase text size
Decrease text size
Link copied

California 'coinman' pleads guilty for running $25M unlicensed bitcoin exchange and ATM

Tue, 27 Aug 2019, 04:23 am UTC

A Westwood, Los Angeles-based man has pleaded guilty for running a $25 million bitcoin money-laundering scheme and selling methamphetamine.

Kunal Kalra, also known as “Kumar,” “shecklemayne,” and “coinman,” was charged on Friday for allegedly operating a money-remittance business used by drug dealers operating in the dark web. His services even included an ATM kiosk for cryptocurrency.

As per an announcement from the U.S. Justice Department, Kalra pleaded guilty to four felonies, including, distributing methamphetamine, operating an unlicensed money transmitting business, laundering of monetary instruments, and failing to maintain an effective anti-money laundering program. He is expected to appear in court for the first time next month.

The press release revealed that Kalra ran a virtual currency exchange business between May 2015 and October 2017, where he exchanged U.S. dollars for bitcoin and vice versa from criminals. He charged commission despite knowing that the proceeds came from drug trafficking and only accommodated high-volume customers willing to exchange at least $5,000 per transaction. He also profited for every transaction conducted on his ATM-like kiosk.

To cover his illicit activities, he opened bank accounts using other names, including fake businesses. Customers who transacted with him were also not required to provide their identities.

The law enforcement seized an estimated $889,000 in cash from Kalra’s bank accounts and vehicles and around 54.3 bitcoin and other cryptocurrencies, worth over $500,000. Kalra could reportedly face life imprisonment as the maximum penalty.

Just recently, the White House issued two advisories addressed to financial institutions and digital private sector platforms to warn that major cryptocurrencies including bitcoin, bitcoin cash, ethereum, and monero are being used to buy fentanyl and other synthetic opioids.

The announcements were made pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act), following the recent link of several Chinese nationals with drug and narcotics trafficking.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $10,253.90 (-1.01%)
  • Ethereum (ETH) $198.96 (+2.35%)
  • XRP (XRP) $0.266100 (+1.17%)
  • Bitcoin Cash (BCH) $310.11 (+0.64%)
  • Litecoin (LTC) $73.03 (+2.15%)
  • Bitcoin (BTC) $10,253.90 (-1.01%)
Sep 17, 2019 (Tuesday)
Harbor tokenizes iCap Equity’s $100M real estate funds using ethereum blockchain
Crypto Technicals: BCH/USD fails to extends weakness below 200-DMA, retrace above will see upside resumption
Women in Leadership: Publicis Sapient hires Merril Lynch veteran Priya Bajoria as SVP Financial Services
Crypto Technicals: IOT /USD forms successive Dojis at cloud resistance, dents scope for upside continuation
Crypto payment services BitPay to roll out Ethereum support in the coming weeks
Blockchain food provenance platform OpenSC secures $4M in seed funding
Australia's REIQ partners with Igloo to develop blockchain-based tenancy agreements
Crypto exchange OKEx Korea to remove all privacy coins, including monero, dash, zcash, over FATF's 'travel rule'
Aventus unveils new ticketing protocol Aventus Classic and $15K prize for blockchain developers
C4IR UAE, World Economic Forum introduce blockchain accelerator program at Dubai's Area 2071
Sep 16, 2019 (Monday)
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
HTC’s blockchain smartphone Exodus 1 adds support for Bitcoin Cash
Crypto Technicals: DASH/USD capped below 50-DMA, 'Bullish Divergence' keeps scope for upside
Crypto Technicals: LTC/USD breaks above 21-EMA, scope for further gains
ConsenSys enters decentralized finance ecosystem with new product suite ‘Codefi’
Kaleido Blockchain integrates QEDIT Zero-Knowledge Proof Enterprise Privacy Solution
Crypto Technicals: ETH/USD extends 21-EMA breakout, pauses shy of 55-EMA, bias bullish
Canada-based Bull Bitcoin latest to join Blockstream’s Liquid Network
Crypto Technicals: BTC/USD extends sideways with no clear directional bias
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.