Three men in the Netherlands have been convicted for selling cryptocurrency services to criminal organizations. The court in the city of Arnemus sentenced the trio for offering encrypted telephone communications and applications that were used for criminal purposes.
The men were running a telecommunication company from 2015 to 2018, selling encrypted phones and applications that enabled anonymous communication. Clients paid for the services in cash, and no personal data was collected, ensuring a high level of anonymity that attracted criminal groups.
An investigation revealed that the phones and applications sold by the trio were actively used to coordinate criminal activities, particularly in drug-related crimes. The accused were aware of the illegal use of their products and even deactivated customer accounts when they came into the possession of law enforcement to conceal evidence.
Furthermore, two of the convicts were involved in forging documents, creating fake invoices that were included in the company’s financial records.
The court determined that the earnings from the illegal activities had criminal origins and that the accused were aware of this, participating in money laundering. The funds were generated from the sale of services that facilitated criminal activities.
The leader of the group, a 52-year-old man from Hoyssen, not only organized the sale of crypto products but also collaborated with another criminal group, providing them with access to encrypted applications for drug trafficking.
Despite the severity of the crimes, the court considered the lengthy investigation process and slightly reduced the sentences for the accused. The leader of the criminal group received a 4.5-year prison term, while his two accomplices were sentenced to 22 and 18 months, respectively.