Last week the Arizona resident Thomas Costanzo (Costanzo Thomas) was convicted of money laundering in the framework of cryptocurrency transactions with a total value of $ 164 000.
The office of the Prosecutor of the state of Arizona and the Department of justice was convicted of money laundering trader named Thomas Costanza (Morpheus) who traded BTC with Localbitcoins platform amounting to more than 164 000 dollars. Officials say that the investigation also has featured deals for more than two years. Last year in April it was reported that the house Costanza was searched and then he was detained by agents of National security.
Outside Localbitcoins Costanzo was also carried out, and other OTC transactions with cryptocurrencies. Prosecutors found him guilty of five counts of money laundering on March 28, 2018.
«In their ads Costanza claimed that he is ready to participate in the cash transactions within $ 50,000,» explains
the U.S. attorney’s office of Arizona. «When Federal agents under cover addressed to Costanza and told him that they are drug dealers, Costanzo sold them bitcoin and said it is a great way to escape the prosecution of law enforcement agencies».
The report describes in detail that Costanza received 164 700 dollars in cash from undercover agents. Law enforcement authorities also report that Costanza used bitcoins to buy drugs through the Internet. Centralized exchanges that follow the rules of AML/KYC, usually charge 1-2% per transaction. The police claimed that «CONSTANZO took from 7 to 10 percent of their P2P transactions».
According to authorities, the investigation was conducted with the participation of different public services: Tax service, the Ministry of economy, the immigration and customs service, national security Agency, Postal service and local police in Arizona. Costanzo will appear before the court for sentencing on 11 June 2018. The trader can be sentenced to 20 years in prison or a fine of $ 250,000, or both measures.
Earlier this year, another American was sentenced after selling bitcoin to a police officer undercover. A resident of the state Pennsylvania was sentenced to a year in jail for selling bitcoins for $ 1.5 million police agent undercover.