Skip to content

Sentences of the Detroit Human Court for Bitcoin Trade Without Appropriate License

Get trading recommendations and read reviews on for only $ 39 a month

A federal court sentenced a Detroit man to one year and one day in jail and three years in prison on probation for exchanging bitcoin without a money service license, according to the United States Attorney's Office for the District of Maine. The man, Sal Mansy, 41, was convicted with his company, TV TOYZ LLC. Halsey Frank, a lawyer from the United States, announced. Mansy pleaded guilty to the charges in May of this year.

The court ordered the defendants to forgo nearly $ 118,000 of bitcoin and money.

The case was the subject of lawsuits in Maine since Mansy's company had been advertising in Maine and that it was carrying out payment transactions with Maine customers, told US Attorney Michael Conley.

$ 2.4 Million in Bitcoin Exchanged

Mansy bought and sold about $ 2.4 million worth of bitcoins between August 2013 and June 2015, according to court records. Mansy channeled his transactions into TV TOYZ's bank account. Mansy owned and operated TV TOYZ, a limited liability company.

Mansy failed to register his money services business with the Financial Crimes Enforcement Network, in violation of federal law. Mansy violated Title 18 of the American Code, Section 1960, which prohibits the transfer of money as a business for third parties without obtaining the appropriate licenses.

Mansy knew that he had to register with FinCEN, according to the court records.

Officers seized a total of $ 118,134.57 in bitcoins and cash during a search of Mansy 's home in Detroit in June 2015, following a year – long investigation.

See also  Indian exchanges of cryptocurrency are not discouraged by the repression of the central bank; New players still enter the market

The Portland Homeland Security Investigation, Me. And Detroit, Mich., US Immigration and Customs offices conducted the investigation, in collaboration with the Department of Homeland Security. Saco police.

Read also: The White House watches bitcoin: Press Secretary Sanders

The federal government collapses

A report from the Congressional Research Service of October 2015 indicates that Congress is concerned about the use of bitcoin in illegal money transfers and its effects on stability of the Federal Reserve. The report also expressed concerns about protecting consumers and investors likely to use bitcoin.

Image from Shutterstock to photo