A Miami man has admitted to running an underground digital currency exchange without the proper paperwork, federal authorities said. Raul Rodriguez, 43, known as raultiovigia on the web, owned and operated a Bitcoin trading outfit that skirted financial regulations, and now he could face up to five years behind bars.
Rodriguez, the businessman turned crypto broker, pleaded guilty to operating an unlicensed money transmitting business, a charge that has landed him in hot water with Uncle Sam—his sentencing is earmarked for the spring, April 2, at a courthouse in Miami, according to the U.S. Attorney's Office for the Southern District of Florida. His plea agreement shed light on his operation, revealing he had exchanged north of $5 million in crypto from 2016 through 2022, and was the top dog in Florida's LocalBitcoins.com in the first two years of his run.
Rodriguez's clientele was not your average Joe looking to invest in Bitcoin, among them were a convicted online narcotics trafficker and a known professional money launderer, making his operation far from kosher in the eyes of the law. The IRS, along with the FBI and DEA's Miami divisions, put the collar on Rodriguez after a thorough investigation with U.S. Attorney Markenzy Lapointe announcing his guilty plea this week.
It's a case that highlights the darker side of the digital currency trade, where the anonymity of the internet and the lack of regulation can be a perfect storm for illicit activity, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation's Miami office took part in rooting out this financial misconduct, as Rodriguez now waits to face the music in a few months’ time.
