Man Sentenced for Illegal Money Transmission Services on LocalBitcoins

U.S. citizen Morgan Rockcoons has been sentenced to fines and prison time for running unlicensed money exchange services on LocalBitcoins.Advertising himself on the peer-to-peer bitcoin trading network, Rockcoons made more than 1,000 transactions with hundreds of different users. The U.S. Department of Justice (DoJ) pursued him on charges of not registering his business with the Financial Crimes Enforcement Network (FinCEN).Rockcoons’ sentencing marks the end of a somewhat protracted legal battle, following his arrest in February 2018. Rockcoons attempted to sell 10 BTC to an undercover law enforcement officer for $14,500 in cash after the officer explicitly told him that the money was acquired through the production and sale of controlled substances.The DoJ released information on this case on May 28, 2019, claiming that Rockcoons is to spend “21 months in prison for wire fraud and operating an unlicensed money transmitting business,” in addition to forfeiting over $80,000 in profits.This marks the continuation of a trend from the U.S. federal government as it ramps up prosecution of bitcoin traders. In April 2019, the DoJ sentenced Joseph Burrell Campos to prison time and an $800,000 fine for similar charges. FinCEN itself began directly pursuing cases of this sort only a week later, levying civil damages against Eric Powers.As in the Campos case, the DoJ claims that the charges against Rockcoons fall under Homeland Securi...