In line with a recent report by native news media ‘Los Angeles Times’, Morgan Rockwell, also called Morgan Rockcoons of crypto city project ‘Bitcointopia’, has plead guilty to two crypto related charges within the federal court of San Diego. Rockcoons acknowledged both to marketing and selling land he didn’t have for a cryptocurrency town project named “Bitcointopia” along with operating a money ‘laundering‘ business without any legit license.
According to the report, Rockcoons primarily came into the eyes of enforcement agencies earlier in 2015 along with his Bitcoin [BTC]-fiat cryptocurrency exchange services, that he advertised on-line. The LA Times added that beneath U. S. federal law, businesses exchanging cryptocurrency for cash within the country should be accredited as cash transmitters with the Financial Crimes Enforcement Network.
Earlier in 2016, an undercover United States agent allegedly revealed as a hash oil manufacturer who required to pay for equipments in Bitcoins [BTC]. In his plea agreement, Rockcoons additionally admitted that he transferred around $9,200 USD in Bitcoin [BTC] to the agent for $14,500 USD in cash, keeping the surplus as a fee.
As per the report, throughout his bail period, Rockcoons revealed his cryptocurrency city project Bitcointopia, an initiative ‘represented‘ as “the desert crypto-kingdom of the future.” Moreover, the project’s web-site is patently offline, an advertisement on what seems to be Bitcointopia’s official ‘Twitter profile‘ shows that the firm was marketing one acre of land in Nevada for 0.5 Bitcoin [BTC] [around $1,977 USD at the reporting time], 2 acres for 1 Bitcoin [BTC] [around $3,956 USD] and 3 acres for 1.5 Bitcoin [BTC] [around $5,934 USD].
In line with LA Times, the land was located in Elko County, Nevada, but prosecutors aforementioned that Rockcoons indeed solely held about 5 acres in two non-contiguous plots. The report claims that he, however, advertised 500 to 1,000 acre plots, with a total loss to investors amounted to around $45,600 USD.
Rockcoons reportedly faces upto twenty years in jail over the alleged ‘fraud‘ charges and upto five years owing to operate an unregistered money transmission business within the U.S.
As ‘reported‘ earlier in Oct. last year, a U.S. individual then conjointly pled guilty before the court to operate an unauthorised money transmitting business via LocalBitcoins.
Even in June last year, Los Angeles-based trader, who acted beneath the alias of “Bitcoin Maven,” was ‘prosecuted‘ for similar charges, allegedly operating an unlicensed multi-million dollar Bitcoin-fiat money transmitting business, conjointly via a LocalBitcoins.