BTC-e fined for non compliance with Banking Secrecy Act

One of the oldest digital currency exchanges, known as BTC-e, remained off-line following a one-two punch by law enforcement over a series of allegedly criminal acts by the site and its owner.

The Financial Crimes Enforcement Network (FinCEN) determined that grounds exist to assess a civil money penalties against BTC-E little known as Canton Business Corporation (BTC-e) and Alexander Vinnik, under the provisions of Bank Secrecy Act (BSA) and regulations issued pursuant to that Act.BTC-e operates as an exchange of convertible virtual currencies, offering the purchase and sale of U.S. dollars, Russian Rubles, Euros, Bitcoin, Litecoin, Namecoin, Novacoin, Peercoin, Ethereum, and Dash.

BTC-e also offered “BTC-e code,” which enabled users to send and receive fiat currencies, including U.S. dollars, with other BTC-e users. Since 2011, BTC-e has served approximately 700,000 customers worldwide and is associated with bitcoin wallet addresses that have received over 9.4 million bitcoin. BTC-e is headquartered in Russia and face the fine of $110 Million.