A person has been caught in New Orleans for allegedly selling Bitcoin to a proposed buyer without even getting registered with the US authority i.e. Financial Crimes Enforcement Network (FinCEN). As per US law if the judicial authority finds the man guilty of selling digital assets without permission, then he can be sentenced to 5 years imprisonment plus a fine of US$ 250,000 as the case may be.
The Department of Justice (DOJ) has deliberately informed that a man named Michael Yusko has been arrested. It was told that the man is a resident of a locality in New Orleans. Allegedly, the arrested person has been taken into custody because he was involved in an illegal sale.
It was apprised by the DOJ that Yusko has been arrested on the allegations of running a crypto business that was non-licensed. As per the laws of the States, no one is allowed to initiate any business without obtaining mandatory permissions and licenses. The authority which deals with the issuance of licenses is FinCEN. FinCEN has also confirmed that no person under the name and style of “Michael Yusko” had ever contacted the authority for the license. The DOJ noticed that Yusko was running a non-licensed business involving the transmission of funds.
It was clarified by FinCEN that in the US every crypto-related business is treated as “funds transmitting business”. Therefore, it is a condition precedent that such business must obtain prior permission before initiation of operations. Failure to seek permission would make the whole business as an illegal business liable to legal consequences.
Sine Yusko had established an entity called Nervous Light Capital LLC, therefore, he was under an obligation to seek FinCEN’s approval. He then opened up several bank accounts in the same name for the purposes of conducting transactions. Through this company, Yusko was found selling Bitcoins as well as other cryptocurrencies to potential buyers. However, he deliberately bypassed the provisions of the law and engaged in funds transmitting business.
Now that Yusko had been arrested, it is likely that he would be facing a maximum sentence of 5 years. However, it is up to the judicial authority to take up the matter of whether it would send him to jail or impose a fine. In the situation of imposition of a fine, Yusko can be ordered to pay a fine of US$ 250,000. However, he can be asked to pay a fine as well as can be sent to jail. The minimum imprisonment in such cases is three years.
However, currently, Yusko is awaiting a hearing where his fate will be decided. But he reserves the right to appeal against any orders passed by the judicial authority. In the meanwhile, DOJ has been preparing the case in which it will level charges upon Yusko under the laws.