A bitcoin seller has been sentenced to one year and one day in prison for customer fraud, according to a U.S. Department of Justice (DOJ) notice. The man took money from customers but did not provide them with the agreed bitcoin.
Fraudulent Bitcoin Seller Going to Jail
The U.S. Department of Justice (DOJ) announced last week that Michael Yusko had been sentenced to one year and one day in prison “for defrauding clients through unlicensed bitcoin trading.”
The 47-year-old New Orleans resident sold bitcoin and other cryptocurrencies to customers in May 2018. “Yusko would promise customers any amount of bitcoin against the U.S. dollar at five percent above the market price for a five percent fee,” the DOJ said. detailed, emphasizing that he failed to track transactions.
According to the Justice Department, customers later complained about their bitcoin purchases, stating:
Yusko tricked them into not providing them with the agreed bitcoin after taking their money.
In addition, the New Orleans resident did not register his company as a show business on the Department of the Treasury’s Financial Crime Enforcement Network (FinCEN), the DOJ added, elaborating:
Yusko also instructed his customers not to tell any bank employees that the purpose of their delivery was to buy cryptocurrency.
Noting that the bitcoin seller pleaded guilty in this case under a plea deal and “admitted to being liable for $ 201,399.00 in losses to victims,” the DOJ concluded:
Judge Ashe sentenced Yusk to one year and one day in prison, as well as three years of probation and a $ 100 mandatory special assessment fee. As part of his sentence, Yusko was ordered to make full restitution to victims in the amount of $ 411,009.00.
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