Boulder Man Sentenced For Money Laundering Bitcoin

BOULDER, CO — A Boulder man was sentenced to one year and one day in federal prison for money laundering Bitcoin, a type of cryptocurrency otherwise known as digital cash.

Emilio Testa, 32, an Australian national and Boulder resident, was communicating with undercover agents beginning in 2016 about his need to convert U.S. dollars into Bitcoin because he preferred not to use banks or deal with taxes, according to court documents.

Testa and the undercover agents conducted money exchanges twice in 2016 and remained in contact over the next year, prosecutors said. Testa then contacted an undercover agent again in 2018 about selling Bitcoin for U.S. dollars from narcotics proceeds, which he did twice that year, according to court documents.

“Criminals may be sophisticated enough to use cryptocurrency but they’re not smart enough to stay out of jail, as this conviction shows,” HSI Denver Special Agent in Charge Steven Cagen said in a statement. “Our agents will continue to shine a light on criminals who use the dark web and Bitcoin to try and conceal their illegal activity.”

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This sentence was announced by U.S. Attorney Jason Dunn.

“Trying to hide criminal proceeds in Bitcoin? We’re going to find you,” Dunn said in a statement. “Working in tandem with our federal partners, our prosecutors are leading the fight against cryptocurrency crimes.”

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation division investigated the case.

"Investigating cyber-enabled schemes is a top priority for IRS-CI and our Special Agents are experts in conducting complex financial investigations, including those committed on the ‘dark web’ with virtual currency,” said Kevin Caramucci, acting IRS-Criminal Investigation special agent in charge. “This sentence shows those choosing to conduct illegal activities, including laundering narcotics proceeds, on the dark web are not hidden from law enforcement’s radar.”

After his prison sentence, Testa will be on supervised release for a year.