New Orleans Man Selling Bitcoin Charged with Operating Unlicensed Money Transmitting Business
2021-06-24 · Press release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MICHAEL YUSKO, III, age 46, a resident of New Orleans, was charged yesterday in a bill of information with operating an unlicensed money transmitting business, in violation of Title 18, United States Code, Section 1960.
Under federal law, any business that engages in “the acceptance of currency, funds, or other value that substitutes for currency from one person and the transmission of currency, funds, or other value that substitutes for currency to another location or person by any means” is deemed to be a money transmitting business. Such businesses include those that trade fiat currency, such as U.S. dollars, for cryptocurrency, such as Bitcoin, Litecoin, and Ethereum. These companies must register with the Financial Crimes Enforcement Network (“FinCEN”) as money transmitting businesses.
According to court documents, YUSKO was the owner and manager of Nervous Light Capital LLC. He used Nervous Light Capital, along with the bank accounts of four other companies, to sell Bitcoin and other cryptocurrencies to customers. YUSKO did not register any of these companies with FinCEN as money transmitting businesses, however. If convicted, YUSKO may receive a maximum of five years in prison, a maximum $250,000.00 fine, up to three years of supervised release, and a $100 mandatory special assessment.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the FBI New Orleans Field Office and the U.S. Secret Service New Orleans Field Office. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
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- https://www.justice.gov/usao-edla/pr/new-orleans-man-selling-bitcoin-charged-operating-unlicensed-money-transmitting
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| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 1903 | MICHAEL YUSKO, III | defendant | Nervous Light Capital LLC | New Orleans | 46 | charged | ||
| 1904 | Duane A. Evans | prosecutor | U.S. Attorney | U.S. Attorney's Office | New Orleans | |||
| 1905 | Matthew R. Payne | prosecutor | Assistant United States Attorney | U.S. Attorney's Office | New Orleans |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 1190 | Federal Bureau of Investigation | FBI | investigation | New Orleans Field Office | Conducted investigative work leading to the charges | |
| 1191 | United States Secret Service | USSS | investigation | New Orleans Field Office | Contributed to the investigation of the case |
| charge_id | charge_description | statute | severity | max_penalty | fine_amount | defendant | status | participant_id | cl_docket_id | count_num | is_1960 | verified_1960 | source | updated_at |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 985 | operating an unlicensed money transmitting business | 18 U.S.C. § 1960 | five years in prison | $250,000.00 | MICHAEL YUSKO, III | indicted | 1 | enrichment | 2026-09-16T19:45:57+00:00 | |||||
| 2914 | operating an unlicensed money transmitting business, in violation of Title 18, United States Code, Section 1960 | 1 | press | 2026-09-16T19:45:57+00:00 | ||||||||||
| 2915 | unlicensed money transmitting business, in violation of Title 18, United State | 1 | press | 2026-09-16T19:45:57+00:00 |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 371 | fine | $250,000.00 | USD | maximum fine for operating unlicensed money transmitting business | cash | MICHAEL YUSKO, III | pending |
| 372 | fine | $100 | USD | mandatory special assessment | cash | MICHAEL YUSKO, III | pending |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 271 | individual | customers |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 1182 | a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt | Duane A. Evans | U.S. Attorney | U.S. Department of Justice | statement | Reiterating the legal process and the presumption of innocence | Emphasizes the legal standard required for conviction |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 1246 | Operating Unlicensed Money Transmitting Business | Michael Yusko operated Nervous Light Capital LLC and other companies to sell Bitcoin and cryptocurrencies without registering with FinCEN as required. | Violating federal law by operating without proper licensing, leading to criminal charges. | 18 U.S.C. § 1960 | National | Recent development | Defendant, FinCEN, FBI, U.S. Secret Service |
| 1247 | Cryptocurrency Transactions | The case involves the sale of Bitcoin and other cryptocurrencies as part of money transmission activities. | Highlights regulatory requirements for cryptocurrency exchanges under federal money transmission laws. | 18 U.S.C. § 1960 | National | Recent development | Defendant, Customers, Financial Institutions |
| 1248 | FinCEN Registration Compliance | Yusko failed to register his businesses with FinCEN as required for money transmitting services. | Non-compliance with anti-money laundering regulations is a key element of the charges. | 18 U.S.C. § 1960 | National | Historical trend (ongoing requirement) | Defendant, FinCEN, Financial Institutions |
| 1249 | Law Enforcement Cooperation | FBI and U.S. Secret Service New Orleans Field Offices were involved in the investigation. | Demonstrates collaboration between federal agencies in enforcing financial regulations. | National | Recent development | FBI, U.S. Secret Service, U.S. Attorney's Office | |
| 1250 | Legal Penalties and Sentencing | Yusko faces up to five years in prison, fines, and supervised release if convicted. | Outlines potential consequences of violating money transmission laws. | 18 U.S.C. § 1960 | National | Current legal standards | Defendant, Court System |
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