A 24 year old man has been sent to US Federal prison for not reporting bitcoin transactions to the US government and doing the whole exchange offline.
Eldon Stone Ross, belongs to Kennett Square borough of Chester County, Pennsylvania, whose one wrong decision to keep the whole transaction unreported and offline has lead him to serve for a year in the federal prison. He had made just $40,000 in commissions from selling $1.5 million worth of Bitcoin which isn’t a huge sum of money since it’s a minimal 2.6% of the total worth.
Eldon has been ordered to hand over the money to US government and has been pleaded guilty for conducting unlicensed business for almost two years. He will now serve a year in prison.
“We don’t see many of these cases. It’s the first I’ve done here.If people can go to someone like Ross who is dealing outside the institutional market, it adds to their anonymity” said Bert Glenn, the assistant U.S. Attorney who was in charge of the matter in Philadelphia.
Eldon has confirmed to his guilt in October, 2017. He has sold the Bitcoins to undercover federal agents and for each case he has “ failed to obtain identifying information from the agents”. This incident turns out to be a case of money laundering since the investors are not covering the KYC procedure and the customer information remains hidden. So, there’s no record of the huge sum of $1.5 million.
After the one year term in the prison is over, Eldon shall be under complete supervision for another three years.This instances should set the examples to not get involved in stepping into any illegal way. Because once you do, the consequences are pretty heavy and impactful.