Four people will be bearing the brunt of the law for allegedly using cryptocurrency for illegal purposes. AP reports a federal judge indicted four people who allegedly collected $4.7 million in bitcoin by selling fake IDs. The four people, who were left unnamed by AP, were reportedly running a “large-scale fake ID operation” in the Toledo, Ohio.
The investigators were reportedly tipped off when several fake IDs popped up in a Springfield bar and one college student told the cops he bought his from Reddit.
After a three-year investigation, they were arrested last month. Investigators found “electronic bitcoin wallets, computers, printers and gold and silver bars.” Now, they’ll be charged for making false identification documents and possessing document-making equipment.
The culprits made good to carry out the fraud without leaving a trace for a while. AP reports fake ID seekers had to “follow specific instructions to hide the transactions and use bitcoins, digital money that isn’t tied to a bank or government.” But eventually, it caught up with them.
Bill Gates had earlier raised concerns over the prospects of fraudulent activities using bitcoin.
“The main feature of cryptocurrencies is their anonymity. I don’t think this is a good thing.
The Governments ability to find money laundering and tax evasion and terrorist funding is a good thing. Right now cryptocurrencies are used for buying fentanyl and other drugs so it is a rare technology that has caused deaths in a fairly direct way,” said Gates recently during Reddit’s Ask Me Anything.