BTC-e, a bitcoin exchange, is fined $100 million by the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). BTC-e is one of the oldest bitcoin exchange founded in 2011 in Russia.
The fine was imposed for facilitating crimes like drug sales and ransomware attacks. The agencies claim BTC-e ignored “know your customer” laws in order to cater to a criminal customer base, and even hosted message boards with illegal activities.
Federal prosecutors allege that BTC-e functioned as a clearing house for illicit funds sourced from “computer intrusions and hacking incidents, ransomware scams, identity theft schemes, corrupt public officials, and narcotics distribution rings.”
BTC-e posted message on its twitter account and says the site will be down for five to 10 days, but many people are speculating that the site will be permanently closed after the huge fine.
A separate $12 million fine was imposed against its owner, Alexander Vinnik. U.S. Justice Department also filed criminal charges against Vinnik and arrested him in Greece (Read News)