A former trader on the platform of Localbitcoins, Morgan Rokkuns, who had previously come to the attention of law enforcement officers in connection with the sale of bitcoins to a federal agent, pleaded guilty in organizing a fraudulent scheme related to the sale of land that did not belong to him, the Los Angeles Times reported.
The Bitcointopia project was selling plots of land in the Nevada desert, where Rokkuns promised to create a settlement whose residents could pay for cryptocurrency and would be free from complying with the requirements of most existing laws. “The long-term goal is to form an organization and government whose tenure will extend from this land to the Kuiper belt, and eventually to the Oort cloud,” wrote the founder of Bitcointopia last May.
On Thursday, Rokkuns before a court in San Diego pleaded guilty to the charges against him, including selling the land he did not own. In addition, Rokkuns, also known as Morgan Rockwell and Metaballo, pleaded guilty to providing money services without a license. In February 2018, he was arrested for selling bitcoins for more than $ 10,000 to an undercover security officer of the Bureau of Investigation.
According to federal laws, cryptocurrency exchange services must be registered on the Financial Crime Prevention Network (FinCEN), carry out customer identification and inform the authorities about all transactions exceeding $ 10,000. Rokkunsu faces up to 20 years in prison for electronic fraud communication and up to 5 years for providing unlicensed cash services. The company Bitcointopia Rokkuns founded, after being released on bail after the sale of bitcoins to a federal agent.
On November 13 last year, Rochkuns wrote on Twitter that he was arrested again, and asked crypto enthusiasts to appear in court in January to support him. According to confessions, at least 10 investors acquired land from Bitcointopia, losing at least $ 45,600.
“Rokkunsu owned less than 5 acres in two non-adjacent areas, the prosecution said. Most of the land in this area belongs to the federal government, ”writes the Los Angeles Times.
