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The U.S. has accused a businessman of running an unlicensed cryptocurrency operation that allegedly enabled secretive “off-the-books” transactions.
Unlicensed Crypto Transactions: Businessman Christopher Scanlon Indicted on Federal Charges
Christopher James Scanlon, a Florida-based businessman, faces federal charges for allegedly operating an unlicensed cryptocurrency and fiat currency transmitting business, the U.S. Department of Justice (DOJ) announced. Scanlon, originally from Utah, was arrested on Oct. 10 at Miami International Airport and later pleaded not guilty in Newark federal court.
According to the indictment, Scanlon, CEO of Aurae Lifestyle and Club Swan, managed entities such as PMA Media Group and AU Card LLC, which provided cryptocurrency and traditional financial services. Prosecutors claim that these businesses were never registered as money transmitters with FinCEN, as required by federal law.
From 2015 to 2019, Scanlon is alleged to have handled financial transactions on behalf of high-net-worth clients without regulatory approval, including so-called “off-the-books” cryptocurrency transactions. Court filings describe one instance where Scanlon executed a “Ghost” transaction for a client facing separate charges in a large-scale cryptocurrency mining scheme. In messages, the client asked Scanlon to conceal the transaction from account records, prompting Scanlon to reply, “Boo.” The DOJ described: “Scanlon exchanged messages with the customer, who requested that the transaction be kept off of the customer’s account ledger as a ‘Ghost’ transaction.”
All charges are currently allegations, and Scanlon remains presumed innocent until proven guilty. The DOJ noted:
The conspiracy count carries a maximum term of five years in prison and a fine of up to $250,000 or twice the pecuniary gain to the defendant or loss to the victims, whatever is greatest.