A Pennsylvania resident who gave a Bank false information about possessing $640,000 worth of BTC to use as collateral for a loan has pleaded guilty to defrauding the Bank.
According to the documents
about the guilty plea, twenty-three-year-old Randall Joseph Smail (Randall Joseph Smail) admitted in the US district court for the Northern district of West Virginia that he used fake account statements on the Kraken cryptocurrency exchange to defraud the Pendleton Community Bank in obtaining a loan for $552,533.
Smale told the Bank that he could withdraw $640,000 worth of BTC in only $200,000 amounts “due to tax problems,” according to court documents dated January 27. Both statements were false, since Smale did not have any BTC in his account on the Kraken exchange at all. He could face up to 30 years in prison and a fine of up to $1,000,000.
According to a study conducted last year, the cryptocurrency-backed lending market continues to grow
to increase, despite the possible risks. One of the main reasons for the growth in this area was the lack of taxes on such transactions. Back in 2018, Genesis Capital issued loans secured by cryptocurrencies worth more than $ 1.1 billion.