U.S. Attorney Clifford D. Johnson | U.S. Department of Justice
U.S. Attorney Clifford D. Johnson | U.S. Department of Justice
A federal grand jury has charged Maximiliano Pilipis, 53, formerly of Noblesville, Indiana, with five counts of money laundering and two counts of failing to file a tax return. These charges are connected to his operation of AurumXchange, an unlicensed virtual currency exchange.
Court documents reveal that from around 2009 to 2013, Pilipis operated AurumXchange to facilitate the exchange of Bitcoin and other virtual currencies for U.S. dollars and other currencies. The business reportedly collected fees worth millions and amassed over 10,000 Bitcoin valued at approximately $1.2 million at the time.
Federal regulations require money transmitting businesses to verify customer identities, register with the U.S. Treasury Department, and file reports with the government. These measures aim to protect the financial system from illicit use and promote national security.
The court documents indicate that AurumXchange conducted over 100,000 transactions involving more than $30 million in funds. Some funds allegedly originated from Silk Road accounts, a dark web marketplace involved in illegal activities such as drug sales. Silk Road was shut down by federal authorities in 2013; Pilipis ceased operations that same year.
In subsequent years, Pilipis allegedly transferred assets derived from AurumXchange's unlicensed operations to conceal proceeds from these offenses. Around 2018, he began converting these proceeds into U.S. dollars for investment and spending on real estate in Arcadia and Noblesville, Indiana. He also reportedly earned significant income in 2019 and 2020 without filing tax returns.
“Combatting the criminal misuse of cryptocurrencies and other digital assets is a critical priority for the Department of Justice,” stated Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Together with our partners in federal law enforcement, we will continue to work to investigate and prosecute offenders who exploit digital assets.”
The investigation was conducted by Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, and Indiana State Police. If convicted, Pilipis faces up to ten years in federal prison and a fine up to $250,000; sentencing will be determined by a judge based on guidelines.
U.S. Attorney Myers acknowledged Assistant United States Attorneys MaryAnn T. Mindrum and Meredith Wood for prosecuting this case.
It is important to note that an indictment or criminal complaint are allegations only; defendants are presumed innocent until proven guilty beyond reasonable doubt in court.
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