So the [
Flag] is pretty simple, there are numerous Red Trust Wall notes about
COINMAN1 u=911630 scamming and there are outstanding scam accusations.
Although coinman1 was
Last Active: 16 August 2019, 15:52:30, the last actual post was on the
23 March 2018, 07:59:11.
I don't believe that "coinman1" is necessarily in control of the account. Here's why:
https://www.coindesk.com/25-year-old-to-plead-guilty-to-running-unlicensed-crypto-exchange [Archive]
25-Year-Old Bitcoin Seller Faces Life Sentence for Unlicensed ExchangeByline: Wolfie Zhao Aug 26, 2019 at 06:00 UTC Updated Aug 26, 2019 at 11:06 UTC
A 25-year-old man from Westwood, Los Angeles, has plead guilty to federal charges for having exchanged up to $25 million in cash and crypto without a license and anti-money laundering program.
Kunal Kalra, also known as “Kumar,” “shecklemayne” and “coinman,” was indicted on Friday for allegedly trading cash and crypto for individuals including drug dealers, partially via his bitcoin ATM kiosk.
An announcement from the U.S. Justice Department last Friday said Kalra, who is expected to make his first court appearance next month, has agreed to plead guilty to the charges.
The release alleges Kalra ran an unlicensed crypto exchange business from May 2015 through October 2017. He admitted in his plea deal for having exchanged bitcoin for cash from criminals including drug dealers who obtained the cryptocurrency from selling narcotics on the darknet.
The justice department went on to say that without implementing an anti-money laundering program, Kalra facilitated such type of transactions with a commission while knowing the proceeds came from drug trafficking.
As part of the investigation, the law enforcement seized about $889,000 in cash from Kalra and about 54.3 bitcoin and other cryptocurrencies, worth more than half-million dollars. The announcement said the maximum penalty Kalra could face is to serve a life time behind bars.
https://www.justice.gov/usao-cdca/pr/westwood-man-agrees-plead-guilty-federal-narcotics-money-laundering-charges-running [Archive]
Byline: Department of Justice U.S. Attorney’s Office Central District of California FOR IMMEDIATE RELEASE Friday, August 23, 2019
Westwood Man Agrees to Plead Guilty to Federal Narcotics, Money Laundering Charges for Running Unlicensed Bitcoin Exchange and ATM
LOS ANGELES – A Westwood man has agreed to plead guilty to federal criminal charges for owning and operating an unlicensed money transmitting business where he exchanged up to $25 million in cash and virtual currency for individuals, including Darknet drug dealers and other criminals, some of whom used his Bitcoin ATM kiosk.
Kunal Kalra, 25 – who was also known as “Kumar,” “shecklemayne” and “coinman” – was charged today in a four-count criminal information filed in United States District Court and is expected to make his initial court appearance next month. Pursuant to a plea agreement also filed today, Kalra agreed to plead guilty to four felonies: distribution of methamphetamine, operating an unlicensed money transmitting business, laundering of monetary instruments, and failure to maintain an effective anti-money laundering program.
This is believed to be the first federal criminal case charging an unlicensed money remitting business that used a Bitcoin kiosk.
According to the court documents, from May 2015 through October 2017, Kalra knowingly operated a virtual currency exchange business where he exchanged U.S. dollars for Bitcoin and vice versa. Kalra charged commissions for exchanging dollars for Bitcoin, and he only dealt with high-volume customers willing to exchange at least $5,000 per transaction. Kalra admitted in his plea agreement that he exchanged Bitcoin for cash from criminals, including those who received Bitcoin from selling narcotics on the Darknet.
Kalra established bank accounts in the names of others, including fake businesses, which allowed him, for a time, to conceal his illicit business activities, court papers state. Kalra also admitted to operating a kiosk – essentially an ATM – where his customers could exchange Bitcoin for cash and vice versa. Kalra profited from every transaction conducted on the ATM. Customers who sought to do an exchange using this ATM were not required to provide their identities and Kalra did not install a camera or implement any features requiring customers to identify themselves, the plea agreement states.
Kalra also admitted that in 2017 he exchanged approximately $400,000 in cash for Bitcoin for an undercover agent who contacted him online and later met him in person on multiple occasions at a coffee shop in Los Angeles. The undercover agent told Kalra that his virtual currency were proceeds of drug trafficking, and Kalra continued with various transactions, according to the plea agreement.
In June 2017, Kalra sold nearly two pounds of methamphetamine to an undercover law enforcement official in exchange for $6,000. Kalra and the undercover agent later met at a coffee shop in Signal Hill to exchange $50,000 in Bitcoin for cash, which the undercover agent represented to Kalra was the proceeds of the sales of the methamphetamine that Kalra had sold to the agent, the plea agreement states.
Law enforcement seized nearly $889,000 in cash from Kalra’s bank accounts and vehicle, as well as approximately 54.3 Bitcoin and other cryptocurrencies.
The maximum possible sentence Kalra could receive for these charges is life in federal prison.
Kalra also faces federal criminal charges in San Antonio, Texas, that were filed earlier this month. That case alleges Kalra conspired to commit money laundering for a drug trafficking network that sold fraudulent prescription tablets, including some laced with methamphetamine and fentanyl. In the plea agreement filed today, Kalra agreed to plead guilty to those charges in Los Angeles federal court.
This matter was investigated by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service, IRS Criminal Investigation, and the Los Angeles Police Department. The Federal Bureau of Investigation assisted with the investigation.
This case is being prosecuted by Assistant United States Attorney Puneet V. Kakkar of the International Narcotics, Money Laundering, and Racketeering Section.
COINMAN1 u=911630 's known wallet address had over 7.6 BTC pass through it:
https://www.blockchain.com/btc/address/14fsh84VQ8gWMETMrG8iyZ9Bbzi5zNFc6HIn both quotes the name "Coinman" is mentioned.
While we have no way of knowing for certain that COINMAN1 u=911630 is actually Kunal Kalra the time frame's are consistent with coinman1's activities and going offline after the scam accusations commenced. It's possible that a Government official has been logging into the COINMAN1 u=911630 while Kunal Kalra has been in custody (hence my wondering if the account has been compromised)
In either case the COINMAN1 u=911630 account has unsettled scam accusations and I believe a flag is warranted.
