WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) recently hit the founder and primary operator of both Helix and Coin Ninja with a $60-million civil money penalty.
Both companies served as “mixers” or “tumblers” for virtual currencies such as Bitcoin. A mixer or tumbler accepts currency and transmits it in a manner designed to prevent tracing the transmission back to its source, The Paypers explained.
The penalty follows Helix and Coin Ninja failings to maintain an effective AML program. For instance, Helix accepted Bitcoin from its customers and transmitted the virtual currency to recipients through a variety of means. Regulators alleged that this anonymizing service was used for illicit activities and that Helix and Coin Ninja failed to conduct proper due diligence on its customers, The Paypers said.
This is FinCEN’s first enforcement action against a mixer/tumbler for virtual currency.