Detroit Bitcoin Trader Gets Jail Time for Unlicensed Money Business

A Detroit bitcoin trader was sentenced Monday to 366 days in jail for operating an unlicensed money services business.

The individual, Sal Mansy, was arrested in June 2015 for funneling bitcoin transactions through a corporation he owned called TV TOYZ. Mansy conducted $2.4 million-worth of bitcoin transactions over a two-year period, according to a release from the U.S. Attorneys office in Maine.

Mansy pleaded guilty in May to purchasing bitcoin through the Coinbase and Bitstamp exchanges, and selling the cryptocurrency at a profit through LocalBitcoins, as CoinDesk previously reported.

According to the release:

“It is against federal law for a money-service business to exchange or transfer bitcoin without registering. Mansy was aware that he was required to register with FinCEN.”

Following his jail time for the offence, Mansy will receive three years of supervised release. He must further forfeit $118,000 in cash and bitcoin gained through the illegal scheme. Investigators confiscated roughly that amount during his arrest in 2015…

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