Bitcoin dealer ordered to forfeit over $800,000 in bitcoin; sentenced to 2 years in prison

Bitcoin dealer Jacob Burrell Campos has been sentenced to two years in prison for operating an unlicensed bitcoin exchange, the Attorney’s Office of the Southern District of California announced. He must also forfeit $823,357 in illicit profits.

Burrell pleaded guilty in October. He failed to register his exchange with the Financial Crimes Enforcement Network of the U.S. Department of Treasury and did not implement necessary anti-money laundering or know-your-customer policies. He also admitted to not performing due diligence regarding the origin of the money that appeared on his exchange.

“The federal government will continue to investigate and prosecute all white collar criminals who refuse to comply with the anti-money laundering laws of the United States, and who assist others in avoiding scrutiny of their ill-gotten gains,” said U.S. Attorney Robert Brewer. “I applaud the excellent work of prosecutor Robert Ciaffa and federal agents who investigated these crimes.” 

Burrell originally purchased his Bitcoin through a U.S.-based, regulated exchange, his account was closed due to a “large number of suspicious transactions.” He then purchased $3.29 million in Bitcoin on a Hong Kong-based exchange over hundreds of transactions.