BitcoinBusiness & Finance

An Illicit Bitcoin Dealer Introduced $1 million in Unregulated Cash to US Banking System

The list holding the criminals making despicable uses of the cryptocurrencies sees yet another increment . Every passing day brings forth a new type of illicit activity being carried out with the help of crypto. The latest crime that has been reported was that of a 21-year-old bitcoin dealer Jacob Burrell Campos. In a press release it was revealed that the young crypto dealer was being held without bail due to multiple count, 31 to be exact, indictment charging him with operating an illegal operation of transmitting funds in order to aid a money laundering program. Magistrate judge, Karen S. Crawford has denied Burrell’s bail because he has nationality of three different countries and access to large amounts of cash and could take flight because of the enormous amount of charges he is facing.

Campos was on his way to America from Mexico, when he was arrested on August 13th, at the Otay Mesa Port of Entry.

Burrell’s hearing was held on August 17th, in which assistant U.S. attorney Robert Ciaffa stated that he was a prolific bitcoin dealer who had been aiding and abetting the transfer of large sums of money via bitcoin. Allegedly, he sold $750,000 worth of bitcoin to a large number of buyers in the US. Jacob had a number of ways for accepting the cash for his services that included accepting in person, through bank accounts and through money gram.

Ciaffa also mentioned in the court that the offender was acting as a bitcoin exchanger, for which he had to register with the department of treasury and follow a set of rules, which would otherwise prevent him from carrying out the illegal operation of money laundering as well as task him with reporting unusual transactions. However, Burrell was conducting his business for all kinds of customers with a policy of no questions asked. He was also earning the 5% of whatever the money launderers were trying to transfer in order to bypass the anti-money laundering laws. Ciaffa went on to stating that Burrell’s activities blew a giant hole through the legal framework of US anti-money laundering laws by soliciting and introducing into the U.S. banking system close to $1 million in unregulated cash.

The indictment also incriminated Burrell for sending 28 wire transfers that amounted up to $900,000 for his bank account in the United States to a bank account in Taiwan, in the name of Bitfinex. He was forced to use Bitfinex which is located in Hong Kong because he tried to evade the ID verification process of Coinbase.  Burrell sent the money from US to buy bitcoin. Altogether Burrell made 2,600 transactions in which he bought over $3 million in bitcoin.

Burrell is also being charged for carrying a little less than $10,000 dollars from Mexico to America in order to avoid reporting the amount of money he was carrying.

According to the DOJ, for conducting an unlicensed money transmitting business he is facing five years in prison and $250,000 fine. Due to failure to comply with the anti-money laundering program, he is facing ten years in prison and a $500,000 fine. For International money laundering, he is facing twenty years in prison for each count and a $500,000 fine. And for conspiring to structure international instrument, Jacob is sentenced to five years in prison and a $250,000 fine. With the massive amount of offences, Burrell is being held accountable for, it would suffice to say that Burrell is expecting some serious time behind the bars.

Jacob Burrell Campos is not the first youngster that has been apprehended on the charges of money laundering through crypto. Only weeks ago, another young man was captured for Sim hijacking, and was charged with a series of offenses and hefty fines. Many crypto enthusiasts have made claims that have boasted the advantages that cryptocurrencies and blockchain provides, a myriad of cases of theft of million dollars prove that the government of multiple countries hold momentous causes to ban the use and trade of crypto, and if these keep on piling, cryptocurrencies might never be legalized.

Hassaan Malik

Co-founder of BlockPublisher, Hassaan is a technologist at heart with a keen interest in blockchain, cryptos and traditional financial markets. Email:,

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