US authorities indict Canadian telecom provider in crypto money laundering case with encrypted phones

A communications provider is in legal trouble with US authorities over a money laundering case involving cryptocurrencies. A federal court instigated Sky Global for allegedly helping criminal organizations launder millions of dollars in crypto.

Sky Global is also accused of destroying devices remotely to avoid seizing them

Speak deposits, the Southern District of California said the Canada-based company was selling encryption devices to allegedly facilitate drug trafficking to Australia, Asia, Europe and North America.

The court found that Sky Global obstructed justice by “creating, maintaining and controlling” a system whereby the company would remotely remove evidence of illegal activity once authorities arrived to seize the equipment.

Additionally, law enforcement accused the Canada-based telecommunications provider of using its infrastructure for the following purposes:

To avoid detection of its illicit behavior, among other things, by laundering its illegal products, communicating with encrypted devices and transferring illegally obtained funds in cryptocurrency, especially bitcoin.

Sky Global reportedly charged its customers a subscription fee of approximately $ 1,200 to $ 1,200 per six-month period.

Additionally, authorities said the company was using bitcoin (BTC) “To facilitate illegal transactions” on the customers’ website “to protect the anonymity of members and facilitate the laundering of ill-gotten gains of members”.

US government vilifies anyone who opposes “unwarranted surveillance”, CEO says

In response to the indictment, Jean-François Eap, CEO of Sky Global, rejected the accusations of the US authorities, and Posted the following statement:

To date, the authorities have not informed us of any of the procedures that have been reported in the media. As I have followed media reports over the past week, it is with great sadness that I see far-reaching coverage of what can only be described as an erosion of the right to privacy.

Eap added that Sky Global “was not created to prevent the police from monitoring criminal organizations; it exists to prevent anyone from monitoring and spying on the global community.

“The indictment against me personally in the United States is an example of the police and government trying to vilify anyone who takes a stand against unwarranted surveillance,” he said.

What do you think of the indictment against Sky Global? Let us know in the comments section below.

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