A financial institution is asking a judge for a $50 million sum in an effort to get its bitcoin trading business off the ground.
The U.S. Bankers Association has filed a lawsuit against the bank, alleging that it’s a money-laundering scheme that violates the anti-money laundering statutes of the United States and has caused the loss of tens of millions of dollars.
A complaint filed in federal court in San Francisco accuses U.K.-based UBS of facilitating transactions that, if legitimate, would have generated billions of dollars in profit for U.B.S., according to a statement from the U.F.S.-based organization.
The bank is accused of providing bitcoin to clients in exchange for “inappropriate fees” and “included the transfer of funds without authorization,” the UBS statement said.UBS is one of several banks that have been accused of facilitating illegal bitcoin transactions, according to The Guardian newspaper.
A separate lawsuit filed by the U-K-based financial regulator Financial Conduct Authority also accuses the bank of providing the currency to clients.
The complaint was filed on Oct. 10, and it seeks a judgment for a forfeiture of “millions of dollars” in fees and costs, the UBA said.
The lawsuit comes amid a crackdown on bitcoin exchanges and the ongoing fight against the so-called Dark Web.
In recent months, the Treasury Department has issued a warning to bitcoin exchanges that they could face criminal charges for the virtual currency.