Another LocalBitcoins dealer has been busted by Federal Agents, specifically Kenneth Rhule aka Gimacut93 was arrested by undercover agents from the Department of Homeland Security. This event re-affirms that peer to peer Bitcoin (BTC) trading remains illegal and risky in the United States.

There was a time many years ago, perhaps 2013 and earlier, when peer to peer Bitcoin (BTC) dealing was a perfectly legitimate business in the United States, and numerous people were able to start Bitcoin (BTC) trading businesses. However, regulators swept in and made peer to peer Bitcoin (BTC) dealing illegal.

The central hub of Bitcoin (BTC) dealing was LocalBitcoins, and the government has been using the platform to dismantle the peer to peer Bitcoin (BTC) trade. Over the years many LocalBitcoins users have been arrested by undercover agents posing as Bitcoin (BTC) customers.

In this specific case, the undercover agents purchased $140,000 of Bitcoin (BTC) over the course of several months, and hinted that the money was from human trafficking, and Gimacut93 made the transactions despite that knowledge.

The real nail in this case was that Gimacut93 was growing illegal marijuana and selling it for crypto as well, so he will face drug trafficking charges in addition to the money laundering charges.

All in all, Gimacut93 faces up to 65 years in prison, and this case is a stark reminder that starting a Bitcoin (BTC) dealing business on LocalBitcoins is still a really bad idea.