Authorities from the USA indicted a Canadian telecom provider in a crypto money laundering case with the use of encrypted phones.
A communications provider is now in legal trouble with the US authorities for a money laundering case which involved cryptocurrencies. A federal court incited Sky Global for suspectedly having facilitated criminal organizations to launder millions in crypto.
Sky Global is also being accused of remotely destroying devices to avoid capture. As per the filings, the Southern District of California stated that the Canadian-based company had been selling encryption devices to allegedly manage drug trafficking to Australia, Asia, Europe, and North America.
The court believed that Sky Global has committed obstruction of justice by “creating, maintaining, and controlling” a system where the firm will remotely delete evidence of the illegal activities once the authorities arrive to seize the equipment.
Furthermore, the law enforcement accused the Canada-based telecom provider of using its infrastructure for the indicated purpose:
“To avoid detection of its illicit conduct by, among other things, laundering its illegal proceeds, communicating with encrypted devices, and transferring illegally obtained funds into cryptocurrency, specifically bitcoin.”
Sky Global is alleged of charging their clients a subscription fee of around $1,200 per six-month period.
Furthermore, the authorities commented that the firm used Bitcoin (BTC) “to facilitate illegal transactions” on the customers’ website “to protect the membership’s anonymity, and to facilitate the laundering of the membership’s ill-gotten gains.”
US Government Questions Anyone Who is Against ‘Unwarranted Surveillance’, says CEO
As a response to the indictment Jean-François Eap, Sky Global’s CEO, rejected the allegations from the US authorities, and issued the following statement:
“To date, the authorities have not informed us of any of the proceedings which have been reported in the media. As I have been following the media reports in the past week, it is with great sadness that I see far-reaching coverage of what can only be described as erosion of the right to privacy.”
Eap also stated that Sky Global “was not created to prevent the police from monitoring criminal organizations; it exists to prevent anyone from monitoring and spying on the global community.”
“The indictment against me personally in the United States is an example of the police, and the government trying to vilify anyone who takes a stance against unwarranted surveillance,” he added.
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