A resident of Washington State charged cash laundering after promoting Bitcoin for $ 140,000 in money to undercover brokers.
Bothell's 26-year-old Kenneth Warren Rhule met Homeland Safety Investigations brokers a number of occasions between April and December 2018, usually at Starbucks cafes in Seattle.
In line with the unsealed complaint Rhule – who acted localbitcoins.com Beneath the identify Gimacut9 – reportedly closed no less than seven offers with brokers "posing as criminals" who needed to purchase untraceable Bitcoin with the proceeds from their operations. They advised Rhule they introduced Ukrainian girls to the US for prostitution.
Drug Enforcement Company Particular Agent Victor Morales mentioned within the grievance:
"Rhule carried out these transactions even after the spy defined that no less than a part of the money represented the proceeds of human trafficking."
Rhule appeared earlier than the American courtroom in Seattle on Tuesday. He was charged with finishing up unlicensed cash transfers and 5 counts of cash laundering. The grievance famous that he didn’t carry out Know Your Buyer ID verification checks.
Cash laundering is punishable by as much as 20 years 'imprisonment, whereas marijuana prices are punishable by a minimal of 5 years' imprisonment and a most of 40 years.
Rhule is claimed to brag about drug surgical procedures
On an event pending confirmations that Bitcoin had been efficiently deposited, Rhule would boast of doing "5.10 or 20,000 kilos" of CBD (Cannabidiol) orders. The investigation discovered that he ran an unlicensed marijuana merchandise firm that manufactured gadgets, together with hash oil. He documented his superior cultivation actions with photographs uploaded to his Google, iCloud and Instagram accounts – together with photographs of Rhule posing with marijuana crops.
He has additionally been charged with conspiracy to provide and distribute marijuana.
Bitcoin vendor praises the virtues of Monero
Rhule additionally advised undercover brokers that Bitcoin was solely pseudo-anonymous and praised the virtues of Monero, who he mentioned was a "100% nameless cryptocurrency":
"Rhule defined to UCA-1 that Monero labored on the identical idea as another cryptocurrency and was verifiable on the blockchain with one essential caveat: pockets addresses couldn’t be tracked."
The "Gimacut9" LocalBitcoins account final closed a deal on July 1, 2019, and was banned from November 2019. LocalBitcoins now not gives money for crypto buying and selling possibility.