IL file photo
A former Noblesville businessman has been indicted on multiple money laundering charges in connection with operating an unlicensed virtual currency exchange, federal prosecutors allege.
A federal grand jury will indict Maximiliano Pilipis, 53, on five counts of money laundering and two counts of willful failure to file tax returns, the U.S. Attorney’s Office for the Southern District of Indiana announced Monday. It was announced that a replacement indictment had been returned.
The superseding indictment was filed on October 16th.
Prosecutors allege that Piripis founded and operated AurumXchange from 2009 to 2013, allowing individuals to exchange Bitcoin and other virtual currencies for the U.S. dollar and other government-issued currencies and virtual currencies. There is. Federal law requires money transfer businesses to register with the U.S. Treasury Department, but AurumXchange was not registered, prosecutors said.
AurumXchange facilitated more than 100,000 transactions totaling more than $30 million, and Philippis collected millions of dollars in fees, including more than 10,000 Bitcoins worth about $1.2 million at the time, prosecutors allege. There is.
Prosecutors say some of the funds routed through AurumXchange allegedly came from accounts on Silk Road, an anonymous “dark web” marketplace that was shut down by federal authorities in 2013.
“As such, AurumXchange provided a safe haven for those who engaged in illegal activities in order to hide their proceeds,” the indictment alleges.
According to prosecutors, Piripis ceased operations of AurumXchange in 2013, began converting cryptocurrency proceeds into U.S. currency in 2018, purchased the Arcadia property for $119,454 in 2018, and purchased the property in Arcadia for $119,454 in 2019. He used his investments to buy real estate in Noblesville for $278,954 in 2007. The indictment alleges:
According to prosecutors, Piripis sold the properties in 2021 for $139,560 and $297,360, respectively.
Pilippis also failed to file tax returns for the 2019 and 2020 tax years, prosecutors allege.
If convicted, Pilippis faces up to 10 years in prison and a fine of up to $250,000. Prosecutors are also seeking the forfeiture of cash, virtual currency and other property related to the charges against Mr. Pilippis.
On Friday, Pilipis’ lawyer filed a motion with the court asking the court to dismiss five money laundering charges against him.
In the complaint, Pilipis’ lawyers argue that AurumXchange’s failure to register as a money transfer operator was not a crime while it operated. The motion alleges that on March 18, 2013, the Financial Crimes Enforcement Network announced that virtual currency exchanges are considered money service businesses and therefore must register.
The defense team argues that the money laundering charges against Pilippis reflect the government’s “efforts to secure huge profits” based on the rise in the value of Bitcoin over the past 14 years.
