The Financial Crimes Enforcement Network (FinCEN) has penalized cryptocurrency trader Eric Powers for breaking anti-money laundering (AML) laws. This is the first time when cryptotrader has been fined for money laundering by the regulator.
According to the prosecution, Eric Powers wasn’t complying with the Bank Secrecy Act’s (BSA) registration and reporting requirements during 2012–2014. Buying and selling bitcoins online, the trader didn’t register himself as a money services business or mediator.
Over160 Bitcoin transactions worth about $5 million and about 200 transactions involving the physical transfer of more than $10,000 in currency was conducted by Powers without reporting. The crypto trader also processed several suspicious transactions, including related to the Silk Road marketplace, without filing a suspicious activity report.
“Such failures put our financial system and national security at risk and jeopardize the safety and well-being of our people, as well as undercut responsible innovation in the financial services space,” FinCEN director, Kenneth A. Blanco, said.