The United States authorities indicted a 25 year old man for exchanging close to $25 million in cash and crypto which he had obtained through his unlicensed money transmitting business, news portal Finance Magnates reported.
Kunal Kalra aka ‘Kumar’ was reportedly charged with four counts of criminal information by the US Department of Justice.
The court documents which indicted him said Kalra allegedly operated a cryptocurrency exchange in the United States of America, without seeking any permission from the concerned authorities. He ran the exchange from May 2015 to October 2017. The news portal said the business exchanged fiat into cryptocurrencies and vice versa and only handled clients who could pay fees of atleast $5000.
This is not the first time, authorities have nabbed an individual running an unlicensed cryptocurrency exchange. In July, a man from New Jersey was indicted by a federal jury for selling $2 million worth of bitcoin through an illegal money transmitting system.
At the time, the accused William Green was charged with operating an unlicensed business is set to appear before a United States District Judge. However, so far, there has been no date fixed. Apart from that, as per all the documents filed and statements heard in court, Green’s business, called Destination Bitcoin. The website allowed the customer to convert their fiat currency into bitcoin for a fee.
In May this year, we had reported that the Securities and Exchange Commission (SEC) had filed a civil injunctive against Daniel Pacheco, who was the perpetrator of a multi-million dollar pyramid scheme.
The complaint filed by the SEC stated that for a period of time spanning from January 2017- March 2018, Pacheco conducted an unregistered, fraudulent offering of securities through two California-based companies he controls, IPro Solutions LLC and IPro Network LLC (collectively, “IPro”). The complaint further stated that investors also received “points” that could be converted into a digital asset known as PRO Currency.
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