The Department of Justice sentenced dad Kenneth Rhule and son Keith Rhule to five years for breaking some serious federal rules: conspiracy to manufacture and distribute cannabis and money laundering. What the duo had apparently intended to do with an undercover agent made their case even more distasteful.
According to the DOJ, Kenneth Rhule (dad) had agreed to exchange Bitcoin, BTC/USD, for cash and even offered some advice on using digital currency to hide funds. Rhule exchanged $142,000 worth of Bitcoin for cash with agents who were posing as human traffickers who wanted to launder money.
“Pair chose to defy state marijuana licensing scheme and laundered over one hundred thousand dollars from sales using bitcoin and dark web,” tweeted Western Washington's U.S. Attorney's Office.
Father and son sentenced to prison for money laundering and illegal marijuana business -Pair chose to defy state marijuana licensing scheme and laundered over one hundred thousand dollars from sales using bitcoin and dark web https://t.co/oWr4GmP2wp pic.twitter.com/A5lHsvyk26— WDWAnews (@WDWAnews) May 31, 2022
At that same time, the DOJ said the Washington State-based Rhules were operating an unlicensed product business using cash and cryptocurrency to sell to customers nationwide and that the operation had grossed more than $13 million with a net profit of $2.5 million.
“Not only did this pair produce and distribute marijuana products on the dark web, in violation of the state’s regulatory scheme, they also illegally laundered immense amounts of Bitcoin that their enterprise earned. When law enforcement moved in, there were more than a dozen firearms – some loaded and ready to be used to protect their drug trade,” said U.S. Attorney Nick Brown, according to Decypt, which initially reported this story.
Blame It On Bitcoin
“Bitcoin’s use in crime continues to be a stick that regulators use to beat back the mainstream adoption of digital currency,” noted Decypt, adding the story of Jeremy Spence, a 25-year-old Rhode Island crypto trader who was sentenced to 42 months in prison for running what the DOJ called a “Ponzi-like” crypto investment scheme.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.