Unsealed: Docket Against Rogue Arizona Bitcoin Trader Charged with Money Laundering

Journalist:
P. H. Madore @bitillionaire
July 6, 2017

CCN recently received word from an IRS agent that the docket regarding Arizona trader Thomas Mario Costanzo, and included it in the communication. CCN verified the validity of the agent and the document, and now publishes it for your use. Moving forward, it appears Costanzo has plenty of legal issues to deal with ahead.

It is worth noting, in times like this, that people like Costanzo are not the norm in Bitcoin trading. Costanzo made no regard for the government despite the size of his operation, and it would have been wiser of him to have made some effort in that direction as the operation grew. After a certain point, you can only be a target if you are not somehow complicit with the government.

Thomas Costanzo / Peter Steinmetz First Superseding Indictment 062017 by PH Madore on Scribd

The document alleges that Costanza and a partner operated for as long as four years with no attempt at getting legal. The level of their business is what makes them stand out, rather than the practice. The government is probably aware that many small-time, low-level traders don’t bother to do anything in regards to getting legal – at most, they will pay taxes. Which is, the most the government should expect from the small traders at least. When someone is trafficking in the millions, buying and selling bitcoins, then it makes sense that the government might take an interest in such a business.

There are several charges of very similar nature, all relating to the foreign trafficking of money. As CCN writer Justin O’Connell previously wrote:

According to court records, he’s been charged with possession of three boxes of Winchester ammunition for an altogether 60 cartridges “in different calibers.” He denied ownership of the ammunition, but admitted they were in indeed his apartment, according to records, which did not say who owned them.

Let it be repeated: this is not your typical Bitcoin trader. Most in the field who would be operating at such a level would more likely pay their taxes, and do things legally, without trying to avoid any regulations they might run into. This is because most people don’t want to end up where this man is, facing criminal charges. Yet, cases like these do reflect badly on all who trade Bitcoin, and make everyone pause and consider how much they’ve done to be within regulations.

Featured image from Shutterstock.

P. H. Madore @bitillionaire

P. H. Madore has written for CCN since 2014. Please send breaking news tips or requests for investigation to bitillionaire+phm@gmail.com. He lives in Maine, USA. A single father of four young children, he does not discourage financial donations, provided they do not come with strings attached.