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The US Attorney's Office for the Southern District of Indiana has announced federal charges against Maximiliano Pilipis, the operator of AurumXchange, an unlicensed crypto exchange accused of conducting illegal money transmission activities and facilitating money laundering.

According to the indictment, Pilipis allegedly operated AurumXchange from approximately 2009 to 2019 without the necessary license required by the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). 

The exchange reportedly allowed users to exchange digital currencies, including Bitcoin, for U.S. dollars and other foreign currencies. Prosecutors claim that, by failing to register as a Money Services Business, Pilipis violated both federal money transmission laws and anti-money laundering regulations designed to prevent financial crimes.

The investigation revealed that AurumXchange allegedly engaged in financial transactions involving significant sums of money from various sources. 

Prosecutors further contend that the platform enabled money laundering activities by providing exchange services without necessary compliance measures, such as customer identification protocols, that are required of regulated institutions.

In addition to violating money transmission regulations, Pilipis faces charges of conspiracy to commit money laundering. If convicted, he could face up to 25 years in federal prison. 

The case underscores the Justice Department's ongoing efforts to clamp down on unlicensed and potentially dangerous cryptocurrency platforms operating outside regulatory oversight.

US Attorney Zachary A. Myers emphasized the government's commitment to tackling financial crimes in the digital asset space, claiming to “investigate and prosecute offenders who exploit digital assets to fuel drug trafficking and other offenses.”

This case is currently under investigation by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service Criminal Investigation (IRS-CI).