A cryptocurrency exchange linked to Silk Road and its alleged money laundering schemes is now facing serious federal charges and prison time for its operator.
Silk Road Connection Resurfaces as DOJ Targets Crypto Tycoon in $30 Million Scandal
The U.S. Department of Justice (DOJ) announced on Monday that a federal grand jury in Indianapolis has indicted Maximiliano Pilipis, 53, formerly of Noblesville, Indiana, on charges related to operating Aurumxchange, an unlicensed cryptocurrency exchange.
When announcing the charges, the U.S. Attorney's Office for the Southern District of Indiana cited five counts of money laundering and two counts of failing to file tax returns. "From around 2009 to 2013, Pilipis created and operated Aurumxchange to allow individuals to exchange bitcoin and other cryptocurrencies for US dollars and other government-issued currencies," court documents detailed, adding:
Aurumxchange and Pilipis reportedly earned fees totaling millions of dollars to facilitate these transactions, including accumulating over 10,000 bitcoin, worth approximately $1.2 million at the time.
Failing to meet federal registration or reporting requirements, “Aurumxchange was used to conduct over 100,000 transactions, resulting in the transfer of more than $30 million in funds.” Authorities claim that some of the funds traded through Aurumxchange originated from Silk Road, an anonymous dark web marketplace that was shut down in 2013 for hosting illegal activities, including drug sales. Pilipis is said to have ceased operations of Aurumxchange that same year.
Subsequently, he was accused of concealing and laundering the money obtained by splitting and transferring bitcoin, converting part to US dollars in 2018, which he used to purchase real estate in Arcadia and Noblesville, Indiana.
#binance #wendy #bitcoin #eth #web3 $BTC $ETH $BNB
