One Year Sentence For Bitcoin Maven
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One Year Sentence For Bitcoin Maven

It is a one year sentence for a local South California trader. Theresa Lynn Tetley was accused of money laundering and transmitting money without a license. She was reported, by the United States Department of Justice (DOJ), to have exchanged money to the tune of $6 million to $9.5 million for clients all over the country.

One Year Sentence For Bitcoin Maven

The announcement made by the DOJ said that Theresa Lynn, who also goes by the Bitcoin Maven, was accused of and admitted to running a Bitcoin exchange business without a license and laundering Bitcoin bought from narcotics proceeds. The statement said that she would be sentenced for a total of twelve months, a $20,000 fine and a 3-year supervised release.

The fifty-year-old who is a former stockbroker and a real estate investor has been sentenced by Judge Manuel L. Real, a US District Judge, and admitted to one count of running a money transmitting business without a license and a count of money laundering.

The DOJ also stated that the accused was instructed to give up forty Bitcoin worth $292,264.00 in cash, as well as twenty five Gold bars that she also accrued due to the proceeds of the illegal business she ran.

The prosecutors had initially requested the judge to sentence the accused to thirty months in a Federal prison.

Operating Bitcoin Exchange Without A License

This case was taken by the DEA (Drug Enforcement Administration) and the IRS (Internal Revenue Service) Criminal Investigation unit. The DOJ revealed that Tetley provided the exchange services without being registered by the FinCEN (Financial Crimes Reinforcement Network). She also failed to do the due diligence of reporting suspicious transactions as required for businesses in this area nor create an anti-money laundering mechanism.

The DOJ also revealed that she, Tetley, advertised her services on the localbitcoins.com network and was able to foresee the exchange of between six million dollars and nine point five million for her client who is all across the country. She also allegedly charged for her services rates that were higher than those charged at FinCEN registered institutions.

The authority concluded the statement by saying that Tetley was

also facilitating money laundering for a client who is suspected to have received their Bitcoins from an unlawful venture including the selling of narcotics on the dark web. Her activities were confirmed when she agreed to perform a Bitcoin for cash exchange for an undercover agent even though the agent informed her the Bitcoins were from a drug trafficking business.

Cryptocurrency Illicit Use Crackdown

The government stated in the sentencing documents that Tetley’s business facilitated the growth of the financial system in the black market while also providing an avenue for the laundering of digital currencies from illicit proceeds.

The United States Government is and continues to actively pursue the crackdown of the Cryptocurrencies illicit use. In the spirit of this pursuit, the House passed a bill last month that seeks to prevent this practice. This bill includes the prevention of the illicit use of Bitcoin, Zcash, Monero, and Dash.

July 11, 2018

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Samantha Mitchell


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