US man faces up to 5 years imprisonment and $250k fine for running unlicensed bitcoin exchange

A federal grand jury recently indicted a New Jersey resident for allegedly operating an unlicensed bitcoin exchange.

In a press release dated July 24, the U.S. Department of Justice (DoJ) announced the indictment of 46-year old William Green on account of operating an unlicensed money transmitting business.

Green allegedly ran a business that operated a website called “Destination Bitcoin.” As per the details, Destination Bitcoin appears to be a fiat-to-bitcoin conversion service. Green charged customers fees to convert more than $2 million in cash into bitcoin, the release said.

“Federal law provides that any person who owns or controls a money transmitting business shall register the business (whether or not the business is licensed as a money transmitting business in any State) with the Secretary of the Treasury. However, Green did not register, either in his own name or in the name of his business, with the Secretary of the United States Treasury as a money transmitting business,” the DoJ announcement reads.

Green was previously charged with the same offense by criminal complaint in February as well. He is now scheduled to appear before a U.S. District Judge on a date, which is yet to be decided.

“The charge of operating an unlicensed money transmitting business carries a maximum penalty of 5 years imprisonment and a $250,000 fine,” it added.