UK Charges Operator of AurumXchange for Money Laundering
The UK Department of Justice has charged Maximiliano Pilipis, operator of the cryptocurrency exchange AurumXchange, with money laundering and unlicensed operations, alleging his exchange processed millions for the notorious darknet marketplace, Silk Road.
According to the DOJ's announcement on 28 October, between 2009 and 2013, AurumXchange facilitated over £30 million in transactions across 100,000 individual exchanges, a portion of which reportedly originated from Silk Road accounts.
SILK ROAD MONEY LAUNDERING BUST?
Maximiliano Pilipis, former operator of AurumXchange, has just been hit with charges for running an unlicensed crypto exchange and laundering Silk Road BTC.
His platform moved over £30M in transactions back in the day, grabbing over 10,000 BTC in fees,… pic.twitter.com/5sj11GA5uz
— Mario Nawfal’s Roundtable (@RoundtableSpace) 29 October 2024
Silk Road, operated by Ross Ulbricht under the alias "Dread Pirate Roberts" from 2011 to 2013, allowed users to anonymously buy and sell various goods, including illicit drugs, on the Tor network.
The DOJ claims that during this period, Pilipis operated AurumXchange without the required licensing and collected millions in fees, including 10,000 Bitcoin—worth approximately £1.2 million at the time—for facilitating these transactions.
The case highlights ongoing regulatory challenges in the crypto space, particularly around darknet transactions and compliance.
Operator of AurumXchange Also Charged with Failure to File Tax Returns
Authorities have accused Pilipis of neglecting essential federal registration and reporting obligations for cryptocurrency exchanges, notably failing to register with the UK Treasury and report the activities of AurumXchange.
Furthermore, he allegedly bypassed Know Your Customer (KYC) protocols, violating Anti-Money Laundering (AML) and counter-terrorism financing (CTF) regulations.
After the shutdown of AurumXchange, Pilipis is said to have divided and transferred the Bitcoin and other assets acquired from his operations to obscure the origins of these funds.
SILK ROAD MONEY: OLD BITCOIN GHOSTS BACK TO HAUNT
Maximiliano Pilipis has just been charged for allegedly running an unlicensed exchange and laundering Bitcoin tied to Silk Road.
Between 2009-2013, his platform, AurumXchange, handled over £30M in transactions, racking up 10,000 BTC in… pic.twitter.com/95Naq29x8x
— Crypto Town Hall (@Crypto_TownHall) 29 October 2024
Allegedly, he converted his cryptocurrency into British pounds, which were subsequently invested in real estate in Arcadia and Noblesville, Indiana.
Authorities contend that these assets generated hundreds of thousands of pounds in income during 2019 and 2020, yet Pilipis failed to file a tax return for that period.
A federal grand jury has issued a superseding indictment, charging him with five counts of money laundering and two counts of willfully failing to file a tax return.
If convicted, Pilipis could face up to ten years in prison and fines reaching £250,000.
However, a federal district court judge will determine his fate, taking into account sentencing guidelines and other statutory considerations, which may result in a reduced sentence.
