Category: Cryptocurrencies

Last Friday, a cryptocurrency trader who goes by the name of Hugo Sergio Meija took a guilty plea deal for his actions, which reportedly led to the laundering of up to $13 million via Bitcoin between May 2018 and September 2020.

He will appear in court next month, where he is expected to plead guilty in accordance with his confession – which would spare him from a longer sentence.

Mr. Meija advertised his sources on various internet forums, but reportedly also let news of his services spread by word of mouth. Mr. Meija would charge a commission on every transaction he would carry out in order to provide fiat in exchange for “dirty money”.

Law Enforcement Posed As Meth Dealers

According to law enforcement, in order to catch Mr. Meija they posed as a methamphetamine dealer based in Australia, and made sure to inform the trader of this beforehand in order to have proof that the trader was willfully engaging in money laundering and not just offering to buy large amounts of cryptocurrency for cold, hard cash.

The law enforcement officials then conducted a total of 5 transactions with the cryptocurrency trader before springing the trap and having him arrested for money laundering.

In total, slightly over $250,000 worth of Bitcoin changed hands by the time he was arrested. As part of the plea deal, Mr. Meija agreed to hand over all assts, digital or otherwise, that resulted from the exchange. The U.S. government seized a total $233,987 in cash and silver – both coins and bullion – and cryptocurrency worth $95,587 at the time of writing. All in all, a profit of nearly $80,000.

Depending on how the trial goes, Mr. Meija may face less than 25 years in prison for his actions.

A cryptocurrency trader will be suing Westpac and ANZ in the ACT Civil and Administrative Tribunal, claiming the closure of his accounts with little to no prior warning have cost him a substantial amount.

The plaintiff – who goes by the name of Allan Flynn – ran a crypto exchange business registered with AUSTRAC, and claimed to have up to 450 customers for whom he would purchase and manage Bitcoin.

Multiple Accounts Closed

According to Mr. Flynn, up to 20 of his accounts have been closed by Aussie banks such as Bendigo, CBA, and NAB.

According to him, he knows of at least one other trader who has had his accounts closed over 60 times.

Thinking that the reason for other closed accounts may have been the fact that he was dealing in cryptocurrency without mentioning it, he opened new accounts with Westpac and ANZ clearly stating that they were to be used expressly for cryptocurrency trading.

However, the 2 new accounts were also promptly shut down.

So far, an ANZ spokesman stated that they would be defending themselves in court. Although ANZ does not bar its customers from purchasing Bitcoin, it is possible that they do not take kindly to businesses who operate in this sector.

Mr. Flynn visited a Westpac branch to try to get answers, and was told the account was closed because of an investigation into cryptocurrency fraud.

“How am I supposed to run a lawful business if I can’t get a bank account?”

One bank also removed Mr. Flynn as a signatory to a term deposit account held in his brother’s name which held  an inheritance from his parents.

The court hearings should take place sometime in March and will surely be a matter of interest for crypto traders around Australia.

Good news for Bitcoiners, as the father of all cryptos recently bounced back, reaching US$40,000, and currently traded at US$39,400. But Bitcoin could reach an even higher price if the demand increases, with a curbed purchasing power.

Could Exchanges Limit Bitcoin Buying?

The volatility of the cryptomarket has put heavy buying pressure on exchanges. So much, that the Israeli-based exchange eToro had to warn its users about “possible limitations” on Bitcoin buying orders.

After abruptly closing crypto positions on Wednesday due to “Extreme market volatility”, a spokeswoman said on Wednesday:

It’s our effort to give clients advance notice that there may be restrictions. We obviously hope we will not have to implement any of these but the crypto markets are incredibly volatile at the moment and the weekends present the greatest challenges

The warning has pumped fear and anxiety in several retailers, who argue this could only boost the price, and the famous Fear Of Missing Out —FOMO— could kick in among investors.

Millions of positions worldwide were wiped out in just a week when BTC caught retailers off guard with a -20% price dump.

Not surprisingly, now that BTC has recovered at least 10 % in price, traditional institutions are now desperate to regulate cryptocurrencies, quoting “money laundering scam”.

On Wednesday, Cristine Lagarde, president of the European Central Bank stated:

Bitcoin is a highly speculative asset which has conducted some funny business and some interesting and totally reprehensible money laundering activity.

But tables are turning, as bulls ignore institutions and politicians trying to hold back cryptos and lowering them to mere schemes.

The statements from Lagarde had the opposite effect as well, as the bull run came exactly after her declarations.

Despite the recent price drop, Australians haven’t lost hope in cryptocurrencies as well. There’s a greater daily inflow of Aussies in exchanges looking to trade cryptos and invest in BTC using SMSFs.

Not only the possible limitations on buying calls could spark the price even higher, but traders are also worried about liquidation following institutional hoarding on cryptocurrencies.