Crypto Exchange AurumXchange Caught in DOJ Net for Silk Road Links

Key Takeaways

• The U.S. DOJ has indicted Maximiliano Pilipis for processing Silk Road transactions.
• AurumXchange allegedly processed hundreds of transactions linked to the Silk Road.
• The operator of the exchange could face up to 10 years in prison.

Following a decade-long investigation, the United States Department of Justice (DOJ) has brought charges against AurumXchange and its founder, Maximiliano Pilipis.

AurumXchange exchange allegedly processed hundreds of transactions linked to the infamous dark web marketplace Silk Road.

Justice Department Indicts AurumXchange Operator

According to the DOJ, between 2009 and 2013, AurumXchange processed over 100,000 transactions worth $30 million, many of which were tied to Silk Road.

Prosecutors accuse Pilipis of laundering millions of dollars in criminal proceeds through his exchange, using the money to buy properties, and failing to pay taxes on the income.

Pilipis now faces five counts of money laundering and two counts of willfully failing to file a tax return.

He could face up to ten years in federal prison and a fine of up to $250,000 if convicted.

Silk Road’s Dark Legacy

Silk Road, the dark web marketplace that was shut down by law enforcement agencies in 2013, was a hub for illegal drug trafficking, weapons sales, and other illicit activities.

The platform’s creator, Ross Ulbricht, was arrested and sentenced to two consecutive life sentences without parole.

Ulbricht’s supporters, including Republican Presidential candidate Donald Trump, have called for his sentence to be commuted.

The DOJ alleged that AurumXchange was a key cog in the Silk Road machine, processing hundreds of transactions linked to the dark web marketplace.

The exchange’s sudden shutdown in 2013, coinciding with Silk Road’s demise, led them to suspect that the two platforms were closely tied.

A Clear Warning

In its press release, the DOJ clearly stated that the illicit use of cryptocurrencies will not be tolerated and that those caught will face severe consequences.

“We will continue to work tirelessly to investigate and prosecute offenders who exploit digital assets to fuel drug trafficking and other offenses,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana.