Key Points
- The United States Department of Justice (DOJ) has charged Maximiliano Pilipis, the operator of AurumXchange, with money laundering related to Silk Road transactions.
- Despite the legal developments, Bitcoin’s value remains strong, surpassing $71,000.
The United States Department of Justice (DOJ) has recently filed charges against Maximiliano Pilipis, the man behind AurumXchange, for money laundering.
These charges are connected to the infamous Silk Road darknet marketplace.
Details of the DOJ Charges
According to a statement from the DOJ on October 28th, AurumXchange processed over $30 million in transactions during Pilipis’ time in charge.
This sum includes funds from approximately 100,000 trades, some of which were associated with Silk Road accounts.
Zachary A. Myers, United States Attorney for the Southern District of Indiana, commented on the matter, expressing the DOJ’s commitment to combatting the criminal misuse of cryptocurrencies and other digital assets.
He emphasized the department’s ongoing efforts to investigate and prosecute offenders who exploit digital assets for illegal activities, as well as those who facilitate the transfer and laundering of crime proceeds.
The Silk Road Connection
Ross Ulbricht, operating under the alias “Dread Pirate Roberts,” managed the Silk Road marketplace on the Tor network from 2011 to 2013.
This platform facilitated anonymous transactions and became a significant hub for drug dealers.
Court documents reveal that Pilipis established AurumXchange to convert Bitcoin [BTC] and other cryptocurrencies into U.S. dollars.
The exchange also dealt with various government-backed currencies and collected millions in fees for facilitating these transactions.
Charges Against Pilipis
Pilipis is charged with failing to register AurumXchange with the U.S. Treasury Department and not submitting necessary activity reports.
He is also accused of violating Know Your Customer (KYC) regulations and Anti-Money Laundering (AML) and counter-terrorism financing (CTF) laws.
After AurumXchange was shut down, Pilipis allegedly laundered the proceeds by transferring the Bitcoins and assets he acquired, converting them into U.S. dollars, and investing the funds in real estate in Indiana.
Despite these legal developments, Bitcoin has remained unaffected, crossing the $70,000 mark.
As per CoinMarketCap, Bitcoin was valued at $71,109.96 at the time of reporting, following a 4.17% increase over the past 24 hours.
