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ARTICLE · 25 OCTOBER 2020

Bitcoin "Mixer" Operator Penalized By FinCEN For AML Violations

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FinCEN assessed a $60 million penalty against an operator of two convertible virtual currency exchangers (called "mixers" or "tumblers") for violations of the Bank Secrecy Act's registration, program, and reporting requirements.

United StatesTechnology
Christian Larson
Christian Larson
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FinCEN assessed a $60 million penalty against an operator of two convertible virtual currency exchangers (called "mixers" or "tumblers") for violations of the Bank Secrecy Act's registration, program, and reporting requirements.

As described in the assessment, the operator conducted each of his businesses as an unlicensed money services business. FinCEN found that the operator's businesses were designed to conceal the sources or owners of transmitted bitcoins and that the operator did not implement an Anti-Money laundering ("AML") program or file suspicious activity reports ("SARs") on any of the transactions, including those conducted on "darknet" marketplaces for child pornography, illegal drugs, and stolen personally identifiable information.

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