- DOJ charges Maximiliano Pilipis with money laundering in connection with Silk Road transactions.
- Bitcoin remains strong, surpassing $71,000 amid ongoing legal developments.
Amid the continued shadow of the Silk Road on the crypto landscape, the US Department of Justice (DOJ) has charged Maximiliano Pilipis, the operator of AurumXchange, with money laundering.
This indictment is related to the infamous Darknet marketplace Silk Road.
DOJ charges AurumXchange crypto exchange
In one statement released on October 28, the DOJ alleges that AurumXchange facilitated more than $30 million in transactions during Pilipis’ tenure.
This included processing funds from approximately 100,000 transactions, some of which were linked to Silk Road accounts.
Zachary A. Myers, United States Attorney for the Southern District of Indiana, said as much:
“Fighting the criminal misuse of cryptocurrencies and other digital assets is a critical priority for the Department of Justice.”
He added:
“Together with our federal law enforcement partners, we will continue to investigate and prosecute offenders who exploit digital assets to fuel drug trafficking and other crimes, and those who unlawfully transfer and launder the proceeds of crime facilitate.”
What else is going on?
From 2011 to 2013, Ross Ulbricht operated under the alias “Dread Pirate Roberts” and managed the Silk Road marketplace on the Tor network.
This innovative platform facilitated anonymous transactions and attracted a wide range of users who bought and sold various products, making it a major hub for countless drug dealers.
According to court documents, Pilipis founded AurumXchange to convert Bitcoin [BTC] and other cryptocurrencies into US dollars.
The exchange also handled several government-backed currencies.
The documents added,
“AurumXchange and Pilipis collected fees worth millions of dollars for facilitating these transactions, including amassing more than 10,000 Bitcoin, worth approximately $1.2 million at the time.”
What are the charges against Pilipis?
Authorities charged Pilipis for failing to register its cryptocurrency exchange, AurumXchange, with the US Treasury Department and for failing to file required activity reports.
They also accuse him of violating the Know Your Customer (KYC) regulations, the Anti-Money Laundering Act (AML) and the Terrorist Financing Act (CTF).
After AurumXchange closed, Pilipis allegedly transferred the Bitcoins and assets he acquired to launder the proceeds.
He then converted them into US dollars and invested the money in real estate in Arcadia and Noblesville, Indiana.
Despite these developments, BTC remained unaffected as it crossed the $70,000 mark.
According to CoinMarketCapBTC was priced at $71,109.96 at the time of writing, having risen 4.17% in the past 24 hours, along with a weekly increase of 6.14% and a monthly gain of 8.44%.