California Woman Using LocalBitcoins to Pull Off an Illegal Business Has Sentencing Postponed

LocalBitcoins is at the center of another Bitcoin-related scheme as a woman in California is awaiting sentencing for her misdeeds.

She allegedly earned at least $300,000 a year through her Bitcoin-related scheme, and now she’s looking a prison time for it.

We’re speaking about Theresa Tetley, a.k.a. Bitcoin Maven, who was convicted of trading a large volume on LocalBitcoins. As you likely know, LocalBitcoins facilitates over-the-counter trading of local currency for Bitcoins.

She was supposed to be sentenced this week, but the sentencing was postponed.

Tetley had reportedly been accused of operating an illegal, unregistered money transmitting business that exchanged Bitcoins for cash. That’s how she was able to reap at least $300,000 a year.

Specifically, federal charges were levied against her accusing her of operating a money transmission business that failed to comply with federal registration requirements.

What’s more, she is accused of conducting a financial transaction involving proceeds from drug trafficking, according to the U.S. Attorney’s Office.

Tetley used the name Bitcoin Maven while carrying out her scheme, according to the U.S. Attorney’s Office. She got away with it for three years – from 2014 through 2017.

It’s likely that she exchanged between $6 million and $9.5 million, according to prosecutors.

We told you earlier this year about another person accused of committing crimes by using LocalBitcoins. This was Morgan Rockcoons, the CEO of Bitcoin Inc.

Like Tetley’s charges, Rockcoons’ entailed drugs and operating an unlicensed money transmitting business.

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

Specifically, the indictment stated that Rockcoons exchanged 9.998 bitcoins 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.