Firm Allegedly Facilitated Crypto Money Laundering With Encrypted Phones
According to the indictment, Sky Global sells encryption devices to criminal organizations to facilitate activities such as drug trafficking.
A Canada-based communications provider has been indicted in a U.S. federal court for allegedly facilitating criminal organizations to launder millions in cryptocurrency with encrypted phones.
- According to the indictment filed March 12 in the Southern District of California, Sky Global sells encryption devices to criminal organizations to facilitate activities such as drug trafficking.
- The company is alleged to have helped these organizations transfer illegally obtained funds into bitcoin and other cryptocurrencies.
- The indictment also alleged Sky Global obstructed investigations of drug trafficking and money laundering through remotely deleting evidence on said devices when seized by law enforcers.
- Sky Global issued a statement March 14 refuting the allegations.
- According to CEO Jean-François Eap, Sky Global technology "was not created to prevent the police from monitoring criminal organizations; it exists to prevent anyone from monitoring and spying on the global community."
- Eap added that authorities have not informed Sky Global of any legal proceedings against it and that the only information gleaned of the indictment has been via the media.
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