Alan Joseph was convicted for running an unlicensed Bitcoin scheme to facilitate criminal activities, including counterfeit goods trafficking.
The U.S. Department of Justice (DOJ) announced on Tuesday that Alan Joseph, a Lancaster, Massachusetts resident, was convicted on Nov. 22 for operating an unlicensed business that converted cash into bitcoin to facilitate criminal activities.
Joseph executed transactions, including a $25,000 cash-to-bitcoin exchange, for an undercover agent who pretended to be involved in the trafficking of counterfeit products, between August 2020 and February 2021. Authorities disclosed that Joseph’s actions encouraged illegal activities by allowing criminals to conceal their cash flow through cryptocurrency.
The misuse of bitcoin to conceal illicit profits is underscored by his failure to register his money transmission business in accordance with federal law.
This case was underscored by federal agencies, such as the FBI and IRS, as a cautionary tale to those who exploit cryptocurrency to facilitate criminal activities. Joseph’s sentencing is scheduled for February 2025, and he is subject to a maximum sentence of 20 years for money laundering and an additional five years for operating an unlicensed business.
