Cryptocurrency trader from Arizona Thomas Mario Costanzo, known in Twitter under the nickname Morpheus Titania, who organized the exchange of cryptocurrency through his website, was charged with five episodes of money laundering by a federal judge of Phoenix on March 28. This is stated in the announcement of the Ministry of Justice.
Constanzo was detained by the Ministry of National Security back in April 2017 for illegal possession of arms. Later, law enforcement officers seized the detainee’s cryptocurrency assets, including bitcoins, Ethereum and Dash.
While Constantzo was in prison, the investigators had suspicions that he could use the cryptocurrency for money laundering.
In the course of further investigation, it was found out that over the two-year period, Constanzo had laundered $164,700. This money he received from agents under cover, represented by carriers of heroin and cocaine.
It was also possible to establish that Constanzo himself used bitcoins to buy drugs and helped his site users get bitcoins for the same purposes without conducting the necessary identification of their personalities.
The Ministry of Justice reports that each of the five charges can turn for Constanzo with a 20-year sentence, a fine of $250,000 or two penalties at once. The verdict in the case will be made on June 11.