LocalBitcoins trader heading to prison
The trader was found guilty of using the platform for several scams
Another LocalBitcoins user has had to answer for his actions and is now going to serve time behind bars. The platform, which allows individuals to buy and sell cryptocurrencies without having to use an established exchange or money processing service, has come under fire for allowing individuals to conduct activity without a license, and several have already been on the receiving end of prison sentences. In the latest case, Morgan Rockcoons not only illegally exchanged crypto, he was found guilty of running a real estate fraud scheme that offered property in exchange for crypto.
Rockcoons was arrested in October of last year and charged with operating a money exchange without a license for his endeavors on LocalBitcoins. He reportedly conducted over 500 transactions in 2016 and over twice that amount the following year, and detailed his transactions on the site.
According to federal prosecutors, “Prior to his 2018 arrest, Rockcoons was indicted on November 8, 2017 for operating the unlicensed money transmitting business. He was arrested on that charge on February 9, 2018, and he was released on bond pending trial. In spring 2018, while on pretrial release, Rockcoons began promoting Bitcointopia on the internet and via social media.”
Bitcointopia was billed as an independent property in Nevada for which Rockcoons offered plots in exchange for 0.5 Bitcoin. However, the property didn’t exist and he was subsequently charged with fraud over the scheme.
As a result of his entrepreneurial, but misguided, ventures, Rockcoons will spend 21 months behind bars. He will also have to forfeit slightly more than $80,000 that he earned through the fraudulent real estate scheme.