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Trader LocalBitcoins charged for the execution of unauthorized Bitcoin exchange

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n indictment released by the Detroit TV news service WD-IV reveals that a 52-year-old Michigan man, Bradley Anthony Stetkiw, was recently charged with "murder." operating an unlicensed remittance business after selling close to $ 150,000 worth of bitcoins between 2013 and 2015, including more than $ 56,000 to law enforcement officers.

The indictment reveals that Stetkiw made himself known as "SaltandPepper" by LocalBitcoins and that he had a number of positive reviews on his profile. He announced his services stating that he was the most reliable and honest tradesman in Oakland County, and organized meetings at a Tim Hortons restaurant in Bloomfield.

Notably, the document filed with the US District Court for the Eastern District of Michigan shows that of the approximately $ 150,000 exchanged, more than $ 56,000 was sold to federal officials in six meetings .

Due to the volume negotiated, Stetkiw should have been registered as a money services business with the Financial Crimes Enforcement Network (FinCEN), and should develop and maintain an effective anti-money laundering program (LBA). ). After seeing the authorities did not follow him and organized meetings that would lead to his arrest. The document reads:

"Operating under the name of the user" SaltandPepper ", Stetkiw bought, sold and traded transactions for hundreds of thousands of dollars in bitcoins without complying with the requirements. company registration under Title 31, US Code, Section 5330. "

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Stetkiew meetings with agents

Undercover agents purchased more than 126 BTCs (now about $ 778,000) from Stetkiw in six meetings, resulting in a total of 26 bitcoin transactions. Stetkiew, according to the indictment, also negotiated an agreement between the authorities and an out-of-state salesman who then sold agents $ 35,000 as a shipper of unlicensed money.

At meetings, Stetkiw revealed that he would sell a maximum of $ 2,500 per person as a limit that he had set "trying to make things comfortable," and he told agents that a large number of LocalBitcoins traders had been arrested. The agents asked if the purchase of bitcoins was considered money laundering, and Stetkiw said that it was the case if the amount traded exceeded a certain value. He added that he did not know what this value was because "the law varies everywhere."

Later, Stetkiw told the agents not to tell him what they were doing with the bitcoins they were buying, because he told them "if it's anything bad, I can not sell it to you. The trouble might be different, so Stetkiw simply asked them not to reveal anything about it.

Notably, the LocalBitcoins merchant also suggested that agents hide their money while driving with him because it could be seized by the police if they could not justify it. When the agents tried to make him reveal his method of hiding money, he replied, "I have a way to do it, I will not tell you how."

The indictment also points out that in addition to being involved in unlicensed money transmissions, he also sent at least 0.6766 BTC on the Dark web market now gone Alpha Bay.

Image from Shutterstock.

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