Operating unlicensed Bitcoin exchange lands CEO of Bitcoin Inc. in prison

According to the latest press release, Morgan Rockwell, CEO of Bitcoin Inc. was charged with the offenses of scamming and the use of illegal Bitcoin exchange. He has been sentenced to prison for a term of twenty-one months with forfeiture of $80,600 in illicit profits.

Previously, Rockwell was arrested on October 29, 2018, but was pleaded guilty on March 7, 2019. His charges include the operation of Bitcoin exchange without having being registered with the U.S Department of Treasury‘s Financial Enforcement Network(FinCEN) and swindling with people by selling them land which he didn’t own.

Reportedly, Rockwell originally owned only five acres of land while he sold about eighteen acres of land which was not owned by him but was supposed to be utilized for constructing a Bitcoin megacity in the state of Nevada, Bitcointopia; space where world’s largest cryptocurrency would be a legal tender.

Furthermore, the Financial Enforcement Network (FinCEN) established new rules regarding the businesses related to cryptocurrency, and these rules will be regulated under the Bank Secrecy Act (BSA). However, Rockwell’s case has caused the regulators to initiate the enforcement of its recently developed guidelines.

According to the new rules, individuals involved with the trading of selling of cryptocurrencies on platforms such as LocalBitcoins are expected to be under the authority of BSA; moreover, the law applies to everyone irrespective of regularity or formality of transaction or the location being operated from.