US sentences Bitcoin seller to 1 year in prison for defrauding investors

[ad_1]

A bitcoin seller has been sentenced to a year and a day in prison for defrauding customers, according to a notice from the US Department of Justice (DOJ). The man took money from the customers but did not provide them with the agreed upon bitcoin.

Fraudulent Bitcoin seller goes to jail

The US Department of Justice (DOJ) announced last week that Michael Yusko had been sentenced to a year and a day in prison “for defrauding customers through unlicensed bitcoin activity.”

The 47-year-old New Orleans resident sold bitcoin and other cryptocurrencies to his customers in May 2018. “Yusko would promise customers any amount of bitcoin in exchange for five US dollars. percent above the market price for a five percent fee,” the DOJ detailed, pointing out that it did not follow through on the trades.

According to the Department of Justice, customers then complained about their bitcoin purchases, stating:

Yusko had defrauded them by not providing them with the agreed upon bitcoin after taking their money.

Additionally, the New Orleans resident has not registered his company as a money transfer business with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), the DOJ added, stating:

Yusko also asked its customers not to tell any bank employee that the purpose of their wire transfer was to buy cryptocurrency.

Noting that the bitcoin seller pleaded guilty in the case under a plea agreement and “admitted liability for $201,399.00 in losses to victims,” the DOJ concluded:

Judge Ashe sentenced Yusko to a year and a day in jail, along with three years of probation and a mandatory $100 special assessment fee. As part of his sentence, Yusko was ordered to make full restitution to the victims in the amount of $411,009.00.

Do you think this bitcoin seller should go to jail for a year? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is provided for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More popular newsIn case you missed it

[ad_2]