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.

AccessTimeIconMar 19, 2021 at 10:45 a.m. UTC
Updated Sep 14, 2021 at 12:29 p.m. UTC

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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