Miami crypto exchanger sentenced: Laundered drug money through bitcoin

MIAMI, Fla. — A Miami cryptocurrency exchanger has been sentenced to prison for running an unlicensed money transmitter business that reportedly converted cryptocurrency drug proceeds into cash.

Raul Rodriguez, aka raultiovigia, 44, of Miami, was sentenced to 57 months in federal prison on April 2.

According to the US Attorney’s Office for the Southern District of Florida (USAO), Mr  Rodriguez, was in the business of converting cash into bitcoin and other digital currency, and vice versa, in exchange for a fee. Rodriguez provided these services to the public through an online digital currency exchange platform known as “LocalBitcoins.com.”

Rodriguez exchanged at least $5,047,462 in digital currency from 2016 through 2022, the USAO said. Reportedly, during the first two years of that period, Mr Rodriguez was the highest-volume trader of digital currency on the LocalBitcoins.com platform in the State of Florida,

According to the USAO, Mr Rodriguez’s clients included a convicted drug trafficker and a professional money launderer.

In addition to the 57-month prison term, Rodriguez will be on supervised release for three years and was ordered to pay a forfeiture money judgment for $5,047,462.

In March 2013, the United States Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) publicly announced that an administrator or exchanger of a virtual currency, such as Bitcoin, was required to register with the Secretary of the Treasury as a money-transmitting business.

Despite these requirements, Rodriguez reportedly operated an unregistered and unlicensed money-transmitting business for over five years.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Matthew D. Line of the IRS, Criminal Investigation (IRS-CI), Miami Field Office, announced the sentence.

IRS-CI Miami investigated the case with assistance from the FBI, Miami Field Office, and the Drug Enforcement Administration (DEA), Miami Field Division. Assistant U.S. Attorney Christopher Browne prosecuted the case. Assistant U.S. Attorney Emily Stone handled asset forfeiture.