Former Bitcoin exchange operator Anthony Murgio has been involved in a criminal investigation for quite some time now. Earlier this week, Murgio pleaded guilty to charges of conspiring to operate an illegal Bitcoin exchange. This cryptocurrency platform in question is linked to an Israeli citizen involved in large-scale corporate hacking. Murgio will not appeal the prison sentence handed down as a result of his involvement in running this cryptocurrency exchange.
A New Development in The Coin.mx Investigation
The now defunct Coin.mx Bitcoin exchange has been the cause of controversy for some time. This platform was run a few years ago, yet operated without the proper license. This criminal offense is punishable by law and can lead to a multi-year prison sentence for the people involved. Anthony Murgio always stated how he was not involved in the exchange platform, yet suddenly seems to have had a change of heart.
Murgio pleaded guilty to three counts, including conspiracy to operate an unlicensed money transmitting business. He also pleaded guilty to performing bank fraud, which is a serious offense. This plea comes one month before the case went to trial in the Manhattan federal court. Murgio agreed not to dispute any prison sentence, which will range between 12 to 18 months. Final sentencing will take place on June 16, 2017.
A total of nine people stand trial in the case related to the JPMorgan data breach of 2014. The Israeli mastermind behind these hacks played a part in operating the Coin.mx Bitcoin exchange, which was allegedly used to launder money obtained through criminal activities. The JPMorgan data breach affected over 100 million accounts, making it one of the largest hacks to date.
Murgio’s operation of Coin.mx allowed the exchange of millions of dollars into Bitcoin. He allegedly helped ransomware victims in obtaining the necessary cryptocurrency to pay off criminals who kept their computer and data hostage. Considering how this money transmission was conducted without a proper license, it is a criminal offense to facilitate such an exchange procedure.
Coin.mx operated between 2013 and 2015, and several fronts were sued to keep the Bitcoin exchange business going. One of these fronts was called Collectables Club, which tricked financial institutions into believing this members-only group was interested in collectible items. But in reality, it was another front to launder money through Bitcoin. The total amount of money laundered by Coin.mx remains unknown to this very date, though.
Five other individuals have been linked to the operation of Coin.mx, including Murgio’s father. Two of these individuals will face trial on February 6, 2017. It will be interesting what information comes to light as a result of this trial. Coin.mx is an integral part of Bitcoin’s history, even though it was an illegal business model facilitating money laundering and criminal activity.
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