Local bitcoin Trader Jailed for Money Laundering

Indicted: Local bitcoin Trader Jailed for Money Laundering

Local Bitcoin trader, Theresa Lynn Tetley, also widely known as Bitcoin Maven has been indicted for indulging in illegal bitcoin-for-cash transactions. According to the Central District of California, the LocalBitcoins.com trader has been sentenced to 12 months in prison.

She has also been handed a three-year supervised release and a $20,000 fine. A former real estate investor and stockbroker, the court ordered her to relinquish $292,264.00 in cash, 25 assorted gold bars, and 40 bitcoin.

money launderingTetley pled guilty to one count of operating an unlicensed money exchange business, and another related to money laundering. Her case is the first of its kind in the Central District of California.

Tetley was procedurally supposed to register her business with the Financial Crimes Enforcement Network, an agency of the United States Department of the Treasury.

The agency is responsible for analyzing transactions to curb money laundering and related financial crimes. She also failed to implement standard anti-money laundering protocol, including reporting of certain financial sources as per the requirements of this type of business.

Tetley is said to have traded over $6 million for clients within the United States and charged higher rates as compared to other traders within the LocalBitcoins platform.

Also noted in the court documents was that Theresa Lynn laundered bitcoin for a customer who had been suspected of having acquired the cryptocurrency through illegal activities, including drug sales on the dark web.

She also carried out a bitcoin to cash transaction for an undercover agent who had explicitly declared that his bitcoin was tied to narco-trafficking operations.

According to the report, Tetley’s service was responsible for fueling the growing use of cryptocurrencies to launder money and supported a black market system set up purposely to circumvent the law.

The organizations involved in her investigation included the IRS Criminal Investigation and the Drug Enforcement Administration.

Just One of Many

That said, the government has been committing significant resources to counter the crypto – dark web menace, and earlier this month, a major sting operation was carried out against a major money laundering network. Thirty-five suspects were arrested.

One individual, identified as John Edward Monette, was charged with Conspiracy to Distribute a Controlled Substance. He was also alleged to have carried out numerous bitcoin for cash exchange transactions on the dark web, most of them in 2017 and totaling about $19,000.

Another dark web vendor busted during the operation, Ryan Farace, 34 was indicted for being involved in an alprazolam tablets manufacture and distribution scheme.

He sold the drugs on the dark web, with all transactions being made in bitcoin. Additional digital currency money laundering transactions were made to conceal the sources.

Article Originally Published:

By ELIZABETH GAIL at Coincentral

 

RoboForex adding EOS Cryptocurrency

RoboForex adding EOS Cryptocurrency

RoboForex announced today adding EOS, a cryptocurrency which is now available for trading with the broker on both MT4 and MT5 platforms.

Roboforex added EOS CryptocurrencyCurrently, RoboForex clients have 7 crypto instruments to choose from.

RoboForex keeps expanding its crypto portfolio.

The latest addition is EOSUSD, which is already available to the clients through MT4 and MT5, alongside with six other crypto pairs:

BTCUSD, ETHUSD, BCHUSD, DSHUSD, LTCUSD, and XRPUSD.

The EOSUSD trading conditions are the following:

  • minimum lot size: 100,
  • minimum increment: 0.01,
  • leverage 5:1.

EOS is a cryptocurrency that was introduced in 2017 and is based on blockchain and smart contracts. Its key features are scalability, decentralized apps, and huge throughput (a few million transaction per second).

EOS Crypto currency

This is another step towards developing our crypto portfolio.

Our clients do value the flexibility and state of the art technologies we offer them As for us, our mission is meeting their expectations and constantly improving the trading conditions by opening the door to new instruments and opportunities.

says Denis Golomedov, ;Marketing Director at RoboForex.

Roboforex and Cryptocurrency

This Broker has been on the forefront of crypto trading on the Metatrader 4 and Metatrader trading platforms from the beginning and pushing for more and more trad-able assets to be added to their offering .

it took this broker a little bit of time but now that they got them selves into the cryptocurrency trading arena they come to lead the pack. this in combination with their the trading platforms they are offering makes this a broker to take notice of.

as yet there are not enough brokers that offer metatrader 5 and especially one where you are able to trade bitcoin ethereum, litecoin and now also EOS.

About RoboForex

RoboForex is a brokerage company catering to clients from various countries. The broker's focus is providing the traders with access to its own financial market platforms.

RoboForex Ltd is a licensed company (License No. IFSC/60/271/TS/17).

 

What Is BitGold?

What Is BitGold?

Bit gold was one of the earliest attempts at creating a decentralized digital currency, proposed by blockchain pioneer Nick Szabo in 1998. Although the Bit gold project was never implemented, it’s often regarded as being the direct precursor to Satoshi Nakamoto’s Bitcoin Protocol. 
Nick Szabo BitGold

Bitcoin and BitGold

There are many similarities between Bitcoin’s architecture and the Bit gold proposal, particularly in the technical mechanisms used to process transactions and secure the decentralized network.
Both Bitcoin and Bit gold are powered by a POW-based consensus algorithm in which computing power is spent to solve cryptographic puzzles. The solution to those puzzles is then processed through a Byzantine Fault Tolerant (BFT) peer-to-peer network. Finally, a cryptographic hash chain is created to link the most recent puzzle’s solution to the outcome of the following one, thereby validating blocks of transactions. This process for posting transactions to the network is consistent between Bitcoin and Bit gold.  
Consensus POW Bitgold
Bitcoin is distinguished for solving the double-spending problem, which the Bit gold proposal could not at the time. Bit gold’s proposal called for a Byzantine method that relies on a quorum of network addresses rather than a quorum of (hash) computing power. This made the Bit gold network overly vulnerable to Sybil attacks. Bitcoin, on the other hand, added block confirmations to successfully protect against double-spending.
Bitcoin successfully realized the intent of Bit gold and is currently a fully functional protocol, serving roughly 20 million users globally, as of May 2018. The two protocols draw such close parallels that people often speculate about Nick Szabo being the anonymous Bitcoin creator, Satoshi Nakamoto(despite his denial.)

Why Was BitGold Created?

Bit gold was inspired by inefficiencies of the traditional financial system and the use of precious metals as currency.

Traditional Financial System Inefficiencies 

Szabo points out that the traditional financial system requires parties to invest a great deal of trust in order for transactions to take place. For example, If somebody were to accept a loan from a bank, the bank must then trust that person with repaying the loan as agreed. Similarly, clients of a bank must trust that their money is properly secured and not being misappropriated by the bank. 
trust-based traditional financial system | What Is BitGold?
Transacting through trust-based systems leaves opportunity for costly problems such as fraud or theft. A study conducted by Lexis Nexis in 2009 showed that merchants in the United States are losing approximately $190 billion a year to credit card fraud. The traditional financial system’s consistent large cost of losses and siloed architecture motivated Szabo.
Bit gold was introduced to provide a more trustless model for transacting. Szabo’s presentation at the 2015 Bitcoin Investor Conference helped highlight the underlying purpose of Bit gold as being“software to minimize vulnerabilities of all parties to each other.” 
When asked about the intent of Bit gold, Nick Szabo explained, “I was trying to mimic as closely as possible, in cyberspace, the security and trust characteristics of gold, and chief among those is that it doesn’t depend on a trusted central authority.” Szabo’s response was describing the defining characteristics of a decentralized network, which Bitcoin successfully implemented a little over a decade later. 

BitGold as an Improvement to Precious Metals as Currency

Bit gold was an attempt to replicate the economic properties of gold (gold’s unforgeable value) while improving its security properties. 
Szabo argues that gold has historically lacked security. He references historical events such as the Spanish looting of the Aztecs and the English looting of the Spanish to acknowledge that physical gold can be acquired through force. Szabo also discusses contemporary political threats, giving the example of President Franklin D. Roosevelt’s executive order of 1933, which required Americans to surrender much of their gold to the federal government. 
The Bit gold proposal was revolutionary in that it utilized advanced principles of computer science (likeencryption) to devise a new, trustless financial system. The proposed decentralized network offers individuals a degree of monetary sovereignty that physical gold could not. Bitcoin expert Trace Mayer describes monetary sovereignty for individuals as “a way that people can hold the private keys to their own wealth.” 
Possessing your wealth first-hand is quite directly the purpose of owning gold, but decentralized financial networks, like that proposed by Bit gold, suggest that personal wealth control can be accomplished in a more secure, digitized, and trustless manner.

 Benefits Proposed By BitGold

Bit gold’s trustless financial model proposed a set of unprecedented benefits for users. In particular, Szabo envisioned two key features of a trustless system:
  1. Independence From Financial Institutions
Through a decentralized Bit gold network, users could transact securely without needing to trust or pay a financial institution to administer those transactions. The Bit gold network itself would provide the functionality of accurately tracking user account balances and processing legitimate transactions. Additionally, users are in possession of the private keys to their own wealth (monetary sovereignty.)
These characteristics in combination meant that transactions and storing money could take place virtually and independently, removing the dependence from financial institutions.
  1. Seamless Operation Across Borders
The traditional financial system has many silos. Sending money across borders can take anywhere from a couple of days to weeks to fully go through. This is because banks must undergo a very rigid and regulated process to send money to other financial institutions before those funds can reach the intended party. 
traditional banking silos
Decentralized networks like Bitcoin and Bit gold remove these silos and create the ability to process cross-border transactions within minutes. Again, these benefits were not realized with Bit gold since the model was never implemented, but are currently being realized through Bitcoin’s Protocol.

Final Thoughts

After discussing the inefficiencies of both precious metals and trust-based financial systems, Nick Szabo puts forth the vision for Bit gold: “Thus, it would be very nice if there were a protocol whereby unforgeably costly bits could be created online with minimal dependence on trusted third parties, and then securely stored, transferred, and assayed with similar minimal trust. Bit gold.”

Key Takeaways

  • Bitgold was the first feasible proposal of a decentralized financial network.
  • Nick Szabo conceived of Bit gold after addressing inefficiencies of the traditional financial system and the use of precious metals as currency.
  • A decentralized financial network (Bit gold) could remove dependence from financial institutions while providing seamless operation across borders
  • The vision of Bit gold was realized by Bitcoin over a decade later and the two protocols share a very similar architecture. 

To find out more, check out Nick Szabo’s Bit gold post on his blog Unenumerated.