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Cryptocurrencies have long been believed to be the Wild West of remittances, online payments or Money transfer firms have not been as outspoken in their demand for illegal funds as the one featured in a recent report.
Experts in the crypto law sector states that the company’s headquarter is located in a “comprehensively sanctioned country” possibly in North Korea and has acknowledged its services as avoiding US sanctions. According to court records, it was established with the help of a US cover firm that allowed domain name purchases.
The project, established to help pariah regions dodge financial restrictions, has directed more than $10 million in bitcoin transfers between the United States and the sanctioned country through a US-based crypto exchange which, according to the opinion, was not aware that it was aiding users in dodging sanctions.
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Someone has been arrested for handling the crypto platform, therefore, Magistrate Judge Zia Faruqui’s decision was likely flexible. It’s all part of a bigger trend in how US law enforcement and the law manages cryptocurrencies.
“First, is virtual currency untraceable? WRONG…. Issue Two: virtual currency is exempt from sanctions? “WRONG,” Faruqui concludes, in reference to two Saturday Night Live skits parodying TV anchor and political pundit John McLaughlin, who was known for his straightforward style.
“We’ve heard a narrative for a long time that bitcoin may be used to evade sanctions,” according to Ari Redbord, head of legal and governmental affairs at TRM Labs, which finds crypto fraud and financial crime.“This is the first time the DoJ has brought a criminal case related to the fraudulent use of cryptocurrencies to evade punishment,” He said.