A Richardson man who goes by the nickname “Physician Bitcoin” has pleaded responsible to illegally working a enterprise that transformed money to cryptocurrency.
Mark Alexander Hopkins, 42, was indicted in March on one federal depend of operation of an unlicensed cash transmitting enterprise. He pleaded responsible Tuesday and faces as much as 5 years in jail.
In accordance with court docket paperwork, Hopkins admitted that he ran a enterprise the place he would take U.S. foreign money and convert it to cryptocurrency, often Bitcoin, for a negotiated charge. If the purchasers have been native, he would meet them in particular person to choose up the money.
However Hopkins was not licensed to function such a enterprise in Texas, nor was his enterprise registered with the Treasury Division, authorities mentioned. He additionally didn’t take steps to confirm his prospects’ private info or the supply of their money, and he didn’t report transactions involving giant quantities of money.
In a single occasion, a buyer whose funds have been linked to a Nigerian lottery rip-off requested him to transform his money to Bitcoin, court docket paperwork say. Hopkins knew the shopper had a companion in Nigeria however mentioned that he didn’t wish to get entangled in any enterprise dealings.
Authorities mentioned Hopkins suggested the shopper on learn how to keep away from reporting necessities by preserving deposits beneath $9,500 and to mislead banks about what the enterprise was doing.
“I’m arrange as a advertising firm, so inform them you’re paying for a advertising marketing campaign,” he mentioned. “In the event that they want extra particulars, say you’re utilizing me to rent bloggers and stuff.”
That buyer had 37 transactions with Hopkins from September 2019 to October 2020, authorities mentioned, totaling between $550,000 and $1.5 million.
“This defendant ignored federal regulation and allowed fraudsters to make use of Bitcoin to function beneath the radar of regulation enforcement,” appearing U.S. Lawyer Prerak Shah mentioned in a written assertion. “We’re decided to rid the Bitcoin market of anybody who knowingly helps felony actors stash unlawful income inside crypto wallets.”
A choose allowed Hopkins to stay free till his sentencing date, which has not been set.