Bitcoin Inc. Founder Faces Money Laundering Charges Over Weed-Related Buy

One of the negative things we often hear about cryptocurrencies is how they can be used by criminals to carryout fraudulent activities, such as money laundering.

In Nevada, that worst-case scenario may have played out, and the person nabbed for breaking the law is not your average “Joe Blow.”

He’s the founder of Bitcoin Inc. – Morgan Rockcoons. He was arraigned Thursday for a money laundering scheme involving a weed transaction and Bitcoin.

Weed, Bitcoin, and money laundering

The U.S. Southern District Court of California brought the charges against Rockcoons, who also goes by the names Morgan Rockwell and Metaballo.

• Money laundering:
• Operating an unlicensed money transmitting business:

For these crimes, the indictment calls for Rockcoons to forfeit property if convicted.

The charges, and subsequent arrest, occurred around the end of 2016. At that time, the indictment outlining the charges was sealed, and stamped, “not for public view.”

The indictment became public as Thursday’s arraignment date neared.

The indictment states that between Dec. 30, 2016 and Jan. 8, 2017, Rockcoons made drug deals with an undercover agent suspected to have been with the U.S. Department of Homeland Security.

Specifically, the indictment states that Rockcoons exchanged 9.998 bitcoin, which was worth about $9,208 at the time, with an undercover agent for $14,500 in fiat.

He allegedly fell for the undercover’s story that the proceeds of the deal would go toward the manufacturing and distribution of so-called hash oil. This oil contains tetrahydrocannabinols, or THC, and it is the principal psychoactive constituent of cannabis, or weed. It’s listed as a controlled substance under Schedule I by U.S. federal law.

To Twitter, the accused go to vent, rally support

Rockcoons is adamant that he didn’t commit any crimes. Like so many convinced they are being unjustly