According to Cointelegraph, the U.S. Department of Justice has charged Maximiliano Pilipis, operator of the cryptocurrency exchange AurumXchange, with money laundering, having processed millions of dollars from the dark web market Silk Road.
The Department of Justice states that Pilipis processed over $30 million in funds during the operation of AurumXchange, involving 100,000 transactions, some of which came from accounts on Silk Road.
Pilipis is accused of operating an unlicensed exchange from 2009 to 2013 and charging millions of pounds in fees, including 12,000 Bitcoins (worth approximately £1.2 million at the time).
He failed to comply with federal registration and reporting requirements, did not register with the U.S. Treasury Department, and did not submit transaction activity reports, violating anti-money laundering and counter-terrorism financing regulations.
After AurumXchange shut down, Pilipis dispersed the proceeds from Bitcoin and other assets for money laundering and concealing criminal proceeds, converting cryptocurrency to pounds for real estate investments in Indiana.
Pilipis's assets generated hundreds of thousands of pounds in income in 2019 and 2020, but he failed to file tax returns. A federal grand jury has charged him with five counts of money laundering and two counts of willfully failing to file tax returns.
If convicted, Pilipis could face up to ten years in prison and a £250,000 fine, but the final sentence will be determined by a federal district court judge based on sentencing guidelines and other statutory factors.