SEC alleges trader used BTC to hide fraud profit

The U.S. Securities and Exchange Commission alleges day trader from Philadelphia Joseph Willner in illegal taking over more than 100 brokerage accounts
01 November 2017   870

The U.S. Securities and Exchange Commission (SEC) is suing a day trader from Phildelphia for alleged fraud, claiming he used bitcoin to hide their profits. This is reported by Coindesk.

On 30th of October, the Commission issued a suit against Joseph Willner. He is accused in illegal taking over more than 100 brokerage accounts and using the victims' funds to artificially inflate stock prices that he would then trade against advantageously.

According to SEC, Willner used an unnamed bitcoin exchange to hide the profits from illegal activities and convert funds from $ to BTC. After that, funds were transferred to another unnamed person.

To mask his payments to the other individual as part of a profit-sharing arrangement, Willner allegedly transferred proceeds of profitable trades to a digital currency company that converts U.S. dollars to Bitcoin and then transmitted the bitcoins as payment.
 

SEC press release

The Commission states that these two people made at least $700k in profit, using the account take-over scheme and investigation is still going.

Account takeovers are an increasingly significant threat to retail investors, and it is exactly the type of fraud our new Cyber Unit is focusing on.
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Stephanie Avakian
Co-Director,  SEC’s Division of Enforcement

BitPay to Receive New York's BitLicense

Having received BitLicense, BitPay can now conduct business with New York-based companies and consumers
17 July 2018   101

The well-known cryptocurrency processing service BitPay obtained a license to work with virtual currencies in the state of New York. Known also as BitLicense, this license is issued by the New York Department of Financial Services (NYDFS) and grants its holders the ability to conduct activities related to cryptocurrencies in the state.

NYDFS has carefully studied the company's application, including its policy on measures to combat money laundering, customer identification, fraud prevention, cybersecurity. The financial situation of the company was also thoroughly analyzed.

New York state has one of the strictest policies around businesses involved in cryptocurrency and working through the approval processes to obtain a License was important to BitPay. We believe this hard work will pay off as New York presents significant business opportunities for BitPay.
 

Stephen Pair

CEO, BitPay

Having received BitLicense, BitPay can now conduct business with New York-based companies and consumers: the first will be able to use the company's processing services to accept payments in Bitcoin and Bitcoin Cash, the latter will pay for various goods and services using these two BitPay supported cryptos.

Note that BitPay was only the eighth company that received BitLicense. Other license holders are Square, Xapo, Genesis Global Trading, bitFlyer USA, Coinbase, Ripple and Circle. In addition, special permissions for operations with crypto-currencies are exchanged by Gemini and itBit.