The US Department of Justice (DOJ) has charged popular online payment processor Payza.com with laundering over $250 million connected to criminal ‎‎activities ranging including Ponzi schemes, federal ‎‎prosecutors in Washington said on Tuesday.‏

The charges against Payza co-founders Firoz Patel, 43, and Ferhan Patel, 37, were already filed in November 2016, but only made public this week. The Canadian brothers stand accused of operating the cryptocurrency-friendly platform beyond the ‎‎regulatory confines of the United States, in what prosecutors called a shadowy ‎‎netherworld of cyberfinance. ‎

‎ “The defendants are accused of operating a money transmitting business ‎that operated ‎without the necessary state licenses and knowingly ‎transmitting funds that were derived ‎from an illegal activity from in or about ‎March 2012 until the present,” DOJ ‎officials said.‏ ‎

Ferhan Patel was arrested in Detroit on Sunday, while his older brother remains ‎‎at large. Both were charged with conspiracy to commit Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term, as well as operating an unlicensed money transmitting business.

The money ‎‎laundering count carries a maximum sentence of 20 years in prison, while the ‎‎other charges carry a maximum of five years.‏

In addition to the criminal charges, Payza’s website domain was seized and replaced by a DOJ message. The company's social media profiles however are redirecting customers to a new website with a .eu domain address. Officials also ‎‎seized or restricted the activity of several bank accounts with $10 million having been frozen.‎

Service provider of criminals

Over six years, MH Pillars Ltd., which did business as Payza, sought to create a convenient way for criminals to make ‎‎financial transactions as the Patel brothers were aware of their illegal activity.

As alleged, they also continued their activity despite receiving cease and desist letters from several states and being told that operating such a business without a ‎‎license is a crime, ‎‎according to an indictment, which was unsealed in the United States District Court for the District of Columbia‏.‏

Payza, which was incorporated in 2004, surfaced as a preferred vehicle to transfer money in ‎‎a number of developing countries.‏ ‎It was also among the first online ‎‎payment platforms and e-wallet providers to embrace Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term back in 2014.‎

The closing of Payza seemed to have an immediate chilling effect on its ‎‎customers, who were suddenly unable to access their funds. Law enforcement officials said the ‎‎payment processor’s clientele was largely made up of criminals, but they ‎‎invited any legitimate users to contact their office to get their money back.‏