Mar 29, · Thursday, March 29, Arizona-Based Peer-To-Peer Bitcoin Trader Convicted of Money Laundering PHOENIX – On March 28, , Thomas Mario Costanzo, a.k.a. Morpheus Titania, of Mesa, Ariz., was found guilty of five counts of money laundering by a federal jury in Phoenix. The case was tried before U.S. District Judge G. Murray Snow. Jan 06, · Arizona Bitcoin Trader Fined and Sent to Jail for Cryptocurrency Fraud. admin January 6, 0 41 2 minutes read. Facebook Twitter. Stan Higgins A bitcoin advocate and trader based in Arizona was arrested last week by federal authorities, according to local reports. Reports from websites include Freedom’s Phoenix and Phoenix.
Arizona bitcoin traderArizona Bitcoin Trader Fined and Sent to Jail for Cryptocurrency Fraud – Cryptrace
Department of Homeland Security, in which Costanzo was initially arrested for unlawful possession of ammunition that derived from a prior conviction. In addition, evidence was also presented to show that the felon himself used bitcoin to buy drugs, as well as offering an online bitcoin exchange service for others purchasing drugs without implementing know-your-customer authentication procedures.
Costanzo is expected to face sentence on June Cryptocurrencies involved in the case may be forfeited by the U. Court gavel image via Shutterstock. Read more about Disclosure The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.
When undercover federal agents approached Costanzo and told him that they were drug dealers, Costanzo provided them with bitcoin and told them it was a great way to limit their exposure to law enforcement. The evidence at trial also showed that Costanzo used bitcoin to purchase drugs from others and that he provided bitcoin to individuals who were buying drugs via the internet.
The evidence at trial also showed how bitcoin operates. Bitcoin is a decentralized form of electronic currency. Bitcoin may be used for legitimate purposes, and anyone can obtain bitcoin from a commercial on-line exchange by paying about 1. The bitcoin involved in the final transaction is also subject to forfeiture by the United States. Attorneys, District of Arizona, Phoenix. For more information on the U. Follow the U. You are here U. Department of Justice.