DOJ Convicts Houston Man for Operating Unlicensed Crypto Exchange

The United States Department of Justice (DOJ) has convicted a 47-year-old  Houston businessman for running a cryptocurrency trading platform without government authorization. 

According to U.S. Attorney Jennifer B. Lowery, the convict, Hien Ngoc Vo, pleaded guilty to providing unlicensed crypto-asset services between March 16, 2016, and June 8, 2016, in the Houston area.

Five Years Jail Time With $250k Fine

The DOJ said Ngoc Vo’s activities were investigated by the Federal Bureau of Investigation (FBI) while Attorney Rodolfo Ramirez was the prosecuting officer in charge of the case. 

During the investigation, the FBI discovered that the convict used a crypto trading platform called Paxful and LocalBitcoins to offer crypto buying and selling services to users. He received 5% to 30% commission for every trade conducted on the platform.

Ngoc Vo provided the services without basic regulatory compliance like Know Your Customer (KYC) nor did he ask users to state their reasons for purchasing the digital assets. 

Ngoc Vo received and transmitted crypto assets worth about $515,000 through his services. He utilized several payment methods to receive funds, including cash, direct bank deposits, credit cards, and Amazon. He used different bank accounts to run the business. However, the accounts were closed after he failed to provide valid information on the origin of the funds. 

The DOJ noted that sentencing is slated to be held on September 5 by Chief U.S. District Judge Lee H. Rosenthal. He faces a five-year jail term in federal prison and a fine of up to $250,000 for the offense. However, he was allowed to remain on bond until his sentencing later this year.

Crypto Crimes on the Rise 

The Justice Department has charged a number of individuals with cases relating to unregistered crypto exchange offerings and thefts. 

Earlier in April, the DOJ confiscated cryptocurrencies worth $34 million linked to illegal dark web activities by an unidentified South Florida resident. According to the report, the anonymous Florida resident made millions of dollars from sales of 100,000 items on the illegal dark web marketplace. 

In February, Coinfomania reported that the department indicted Satishkumar Kurjibhai Kumbhani, founder of BitConnect, a fraudulent crypto project that stole over $2 billion from investors.