As per a statement from the U.S and the Department of Justice, two people were put in jail for conducting a money laundering and marijuana operation using BTC. They apprehend Kenneth Warren Rhule, 28, and Kenneth John Rhule 48, a dad and his son in Washington.
They will be sending the defendants to jail for up to 5 years as part of an investigation by the Department of Homeland Security and the Drug Enforcement Agency. Authorities are accusing Rhules of conspiring to manufacture and distribute marijuana and operate an illicit Bitcoin exchange.
According to attorney Nick Brown, the couple makes and distributes marijuana goods on the dark web, in contravention of the state’s regulated structure. As a result, they unlawfully laundered vast sums of bitcoin produced by their business.
Creating Legislative Frameworks
According to the court, the Rhules conducted a relevant-sized criminal company and were in possession of guns to safeguard it. This influenced the final decision and sentencing. Brown went on to say that when law officers arrived, they discovered more than a dozen guns.
Some of them have loads and are ready to defend their narcotics trade. The state has established a regulatory framework to achieve a variety of essential goals. This includes safeguarding the safety of individuals who manufacture and use marijuana products.
In April 2018, US legal enforcement authorities began an investigation into the Rhules. With the use of an inside spy, they were able to enter and get further information on the laundry and marijuana businesses at the time.
This individual met with Rhule junior in a number of sites, but the major Starbucks coffee houses. The undercover detective pretended to be the proprietor of a client in need of money laundering after running a human trafficking enterprise.
According to the DOJ report, Rhule agreed to swap this operation’s cash for Bitcoin without questioning the undercover detective for the required Know Your Customer details. Furthermore, Rhule advised the agent on BTC and other tokens in order to conceal money from investigators.
The Total Amount of Bitcoin During the Operation
Authorities believe Rhule paid up to $142,000 for the undercover operative. This is in addition to the $13 million in revenues earned by their illicit marijuana company, which was sold to clients countrywide for cash or bitcoin.
The son and father created marijuana goods, such as oils, without a permit from the government of Washington. HerbinArtisans is the name that they give to the items. U.S. Attorney Brown wants to make the case that the state has the right to tax the marijuana sector. Nonetheless, the plaintiffs disregarded all of this.
This could be because of their desire, which is always the situation in fraudulent instances. However, by conducting business in this manner, many individuals are already in danger. Thus, it gives a negative impact on others in the sector who want to follow the laws.
The incident, arrest, and following punishment demonstrate why cryptocurrencies, which have an open and public record, are incompatible with unlawful activity. These networks might make it easier for police to acquire evidence. At the time of this post, BTC is trading at $29,400, down 7% in the previous 24 hours.
