Four People Get Indicted After Getting $4.7 Million in Bitcoins for Selling Fake IDs

The group was reportedly selling the IDs on Reddit.

March 3, 2018

The bitcoin craze may be racking in major coinage for some (like 50 Cent, maybe), but at least four people are paying for allegedly using cryptocurrency for illegal purposes.

Associated Press reports a federal judge indicted four people who allegedly collected $4.7 million in bitcoins by selling fake IDs. The four people, who were left unnamed by AP, were reportedly running a "large-scale fake ID operation" in the Toledo area. The investigators were reportedly tipped off when several fake IDs popped up in a Springfield bar and one college student told the cops he bought his from Reddit.

After a three-year investigation, they were arrested last month. Investigators found "electronic bitcoin wallets, computers, printers and gold and silver bars." Now, they'll be charged for making false identification documents and possessing document-making equipment.

The group's reign lasted for a while as they made sure not to leave a traceable trail. AP reports fake ID seekers had to "follow specific instructions to hide the transactions and use bitcoins, digital money that isn’t tied to a bank or government." But eventually, it caught up with them.

It seems Bill Gates was right about the new wave of currency—it can lead to some bad things.

"The main feature of cryptocurrencies is their anonymity. I don't think this is a good thing. The Governments ability to find money laundering and tax evasion and terrorist funding is a good thing. Right now cryptocurrencies are used for buying fentanyl and other drugs so it is a rare technology that has caused deaths in a fairly direct way," said Gates recently during Reddit's Ask Me Anything. Yikes.