Wednesday, October 28, 2020

Tax authorities arrest cryptocurrency money launderer

-

The Tax Authority’s investigative department FIOD arrested two men in separate investigations into money laundering using cryptocurrency. Roughly a half-million euros in cryptocurrency, fiat cash, and gold was seized in the two cases, the tax investigation agency FIOD said on Tuesday.

The suspects, both arrested on Monday, mainly used bitcoin, but other digital currencies were also used, AD reports based on information from the Public Prosecution Service.

In the first case, a 45-year-old man from Noordwijk was arrested on suspicion of laundering over 2 million euros. “The suspect made large purchases with a crypto credit card that could not be explained by his income and assets as declared to the tax authorities,” the FIOD said. “He also made several large cash withdrawals with this card.”

After his arrest, FIOD seized three kilograms of gold worth approximately 141 thousand euros, dozens of crypto wallets with a total of around 260 thousand euros in cryptocurrency on them, ten thousand euros in cash, debit and credit cards, watches, jewelry, and a car. The authorities are investigating how the man obtained these assets.

- Advertisement -

In the other investigation, a 31-year-old man from the province of Groningen was arrested. He is suspected of laundering around 100 thousand euros along with two accomplices.

They allegedly used former cryptocurrency mixing service Bestmixer.io to launder the cash. The website offered clients the possibility “to mix potentially identifiable or ‘tainted’ cryptocurrency funds with others, so as to obscure the trail back to the fund’s original source,” Europol said in May 2019 after a Dutch-led investigation into the site forced it offline.

“The investigation to date shows that many of the mixed crypto currencies have a criminal origin or destination,” FIOD said at the time.

The suspect from Groningen was discovered because of information obtained in that case last year. His IP address was linked to a bitcoin address used on the former website, FIOD stated. The authorities seized computers, smartphones and other data devices in this investigation.

- Advertisement -

Bestmixer.io achieved was in operation for just one year before it was shut down. At the time, FIOD said the site achieved a turnover of 25 thousand bitcoin, or at least $200 million in the estimate provided at that time. That amount of bitcoin would be worth over $240 million using current trading figures.

Authorities said more arrests are possible in connection with the 2019 investigation into Bestmixer.

MUST READ

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Actress Felicity Huffman complete full sentence for role in college admissions scam

Felicity Huffman has completed her full sentence for her involvement in the college admissions scandal. As of Sunday, she has finished her sentence, which included jail...

EU takes legal action against Cyprus and Malta over investment for citizenship scheme

The European Union’s executive said on Tuesday it was launching legal action against Cyprus and Malta over their investor citizenship programmes, also known as...

Judge opposed dismissal of bribery charge against former Portage mayor Synder

A judge denied Thursday two motions to dismiss a soliciting bribes charge former Portage Mayor James Snyder will be retried on, according to court...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks