On January 9, 2017, Anthony Murgio pled guilty to charges related to operating Coin.mx, an unlawful Internet-based Bitcoin exchange that Murgio used to process more than $10 million in illegal Bitcoin transactions.  According to the Superseding Indictment and statements made during court proceedings, Murgio operated Coin.mx between 2013 and July 2015.  Murgio and his co-conspirators used a phony front company, “Collectables Club,” in order to avoid detection of the Bitcoin exchange.  Murgio used Collectables Club to open bank accounts through which Coin.mx operated, in order to mislead financial institutions into believing that the Bitcoin exchange was a members-only association of individuals buying and selling collectible items and memorabilia.  Murgio and his co-conspirators also misidentified and miscoded Coin.mx’s customers’ credit and debit card transactions and instructed Coin.mx customers to mislead banks about the nature of the credit and debit card transactions that they executed through Coin.mx.  In addition, in 2014, in order to further avoid scrutiny of Coin.mx, Murgio and his co-conspirators gained control of a federal credit union in New Jersey with primarily low-income members, Hope FCU.  Murgio and his co-conspirators then attempted to obstruct an examination of Hope FCU by the National Credit Union Administration.  In connection with this scheme, Murgio pled guilty to conspiracy to operate an unlicensed money transmitting business, conspiracy to commit bank fraud, and conspiracy to obstruct an examination of a financial institution.   Murgio’s co-conspirators Jose M. Freundt and Michael Murgio previously pled guilty, on October 13, 2016 and October 27, 2016, respectively.  United States v. Murgio,  15-CR-769 (S.D.N.Y.). DOJ Press Release

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