A stunt from US law enforcement sent a 24-year-old to prison for unlicensed money transmitting. Authorities arrested the young man after they discovered he had been trading Bitcoin and not reporting the transactions to the government.
Eldon Stone Ross, a 24-year-old from Kennett Square borough of Chester County, Pennsylvania, has been sentenced on Wednesday to serve a year and a day in federal prison for buying and selling large amounts of bitcoin to people without reporting the transactions to the US government.
And his gross vs. net profit…
The young man supposedly sold $1.5 million in bitcoin for almost two years but made only $40,000 (a mere 2.6%) in commissions, which he now has to hand over to the government in addition to his year-long prison sentence. He has been convicted for conducting an unlicensed money transmitting business between January 2015 and November 2016 and failing to report the fiat to bitcoin transactions.
In fairness, there may have been more to the story. In 2014, Ross landed in jail for selling heroin, ecstasy, marijuana, and prescription medications. Both Ross and an accomplice caught numerous drug trafficking charges, including criminal conspiracy to distribute heroin. Maybe a darknet element?