In one of the first criminal cases filed under US sanctions law, including cryptocurrency transactions, a federal justice of the peace approved a criminal complaint by the Justice Department.In opinion U.S. Magistrate Judge Zia M. Falki, opened on May 13, 2022, is justified by the Justice Department for sending more than $ 10 million in Bitcoin to a “comprehensively licensed” country by an unnamed defendant. I ruled that I showed the reason.
Government criminal charges use U.S. IP addresses to operate online payment and remittance platforms based in “comprehensively licensed” countries for U.S. citizens whose names have been edited with the docket sealed. Claimed to have done. The operation of the payment platform involved using a US shell company to perform financial services and transfer cryptocurrencies to the account associated with the payment platform. The platform advertised that the service was designed to circumvent US sanctions, including through untraceable cryptocurrency transactions. Nevertheless, criminal investigators were able to identify the defendant through cryptocurrency exchanges, email search warrants, banking information, and subpoenas to shell company registration information.
The government alleged that the defendant violated the International Emergency Economic Powers Act and colluded to deceive the United States.In his decision of previous recruitment OFAC Interpretation GuidanceThe judge has determined that the exchange and transmission of cryptocurrencies is subject to US sanctions law and that cryptocurrencies are subject to OFAC regulations. The judge found that the defendant’s remittance of cryptocurrencies to sanctioned countries violated US sanctions. In addition, the judge commented that the defendant was liable because his transaction probably unknowingly violated US sanctions on the cryptocurrency exchange. These deliberate violations then established a reason for the defendant to believe that he violated US federal criminal law against US fraud. As the opinion pointed out, “Citizens’ liability is not the upper limit. The Justice Department can prosecute individuals and groups for violating OFAC regulations, including cryptocurrencies.
Copyright © 2022, Hunton Andrews Kurth LLP. all rights reserved.National Law Review, Volume XII, Number 138