The money transfer provider Payza has been sued by the US Department of Justice for allegedly committing acts of money laundering totaling around $250 million. The lawsuit hit the cryptocurrency-friendly payment portal Payza with allegations of conducting illicit activities such as pyramid schemes, Ponzi schemes, and even child pornography. A court document was filed almost two years ago on November 3, 2016; nonetheless, it was not until this week that it was finally released. The lawsuit targets the co-founders of the service, Canadian brothers Ferhan and Firoz Patel, both of whom are now facing charges for operating a money transfer business without having the necessary license. It is believed that the illicit activities began in 2012, whenPowered by WPeMatico
Most people are familiar with the company Payza. This particular service provider integrated cryptocurrency payments quite some time ago. It now seems the US government has taken a rather harsh course of action against Payza. The company faces charges of running an unlicensed money services business. US Government Cracks Down on Payza Any company dealing with cryptocurrencies will irate the US government sooner or later. In the case of Payza, the charges against them are quite steep right now. Running an unlicensed money services business is subject to severe penalties and even jail time. It is evident this is not
This week the U.S. Immigration and Customs Enforcement’s Homeland Security agency (ICE) has revealed that it is charging two Canadian brothers and the company Payza with illegal money transmission and money laundering charges tethered to cryptocurrency transactions. Also read: ICO Trackers Are the New Gatekeepers of Crowdsales Money Transmitters are Required to Register With U.S. Federal […]