Nine people appeared in court in Gloucester yesterday (December 4) accused of taking part in a £3.5million money laundering operation that involved criminal cash being converted into crypto currency.

Guisseppe Sangiovanni, 32, of Bellworth Drive, Cheltenham, is alleged to have been in control of the scheme, Gloucester Crown Court was told.

He is accused of recruiting the other eight defendants, who are from Gloucester, Cheltenham, Quedgeley and Frampton on Severn, and persuading them to have a total of £3,742,655 paid into their bank accounts.

Alexander Greewood, prosecuting, said it is the Crown's case that the eight defendants were persuaded to purchase crypto currency with the funds in return for a 'small financial bonus.'

He added "It is believed that the original source of this money was from the proceeds of criminal activity. It is alleged that some of the defendants were being paid."

Ben Close, representing Mr Sangiovanni, said: "The prosecution evidence at this stage is not disputed. He accepts he was receiving money in order to purchase crypto currency, having been given the cash by people he knew. But he didn't know the money was the proceeds of crime.

"Mr Sangiovanni disputes that the money was from any sort of criminal activity."

The other eight defendants and the amounts cited in the charges against them are:

Steven Smith, 31, of Coniston Road, Warden Hill, Cheltenham, who is charged with transferring £1,208,090 of criminal proceeds;

Haig Wilson, 30, of Phillimore Gardens, Frampton-on-Severn who is said to have transferred £351,850;

Holly Wilson, 36, also of Phillimore Gardens, Frampton-on-Severn: £112,830;

Lee Edwards, 31, of Norfolk Street, Gloucester: £434, 805;

Patrick White, 28, of Spa Road, Gloucester: £425,535;

Michael Chapman, 28, of Whittle Way, Brockworth: £93,350;

Sara Buffin, 40, of Valley Gardens, Quedgeley: £928,825;

Thomas Dainty, 29, of Beckford Road, Abbeymead: £106,000;

Alex Daymond, for Sara Buffin, said she has pleaded guilty to one charge as she suspected that the money being used was from criminal activity. She would put forward a basis of plea in due course.

Jessica Tate, for Mr White, said he understood the money was the proceeds of trading in bitcoins. His case was that he received a small commission, but nothing like the sums of money being transferred, she said.

Catherine Spedding, for Steven Smith 31, said his case is that he was not aware of any involvement in criminal activity despite having a million pounds deposited into his account. He believed his account was being used for legitimate services, she added.

Regveer Chand for Mr Edwards, 31, of Norfolk Street, Gloucester, said that his client was convinced that there was nothing unlawful about what was going on.

Lee Mott for Haig Wilson said he was under the impression that the transfers into his account had nothing to do with criminal activity.

Simon Burch for Mr Dainty, said "He believes the world of crypto trading to be very mystifying and complex and he was ignorant as to how his bank account was used."

Steven Young for Mr Chapman, said he did not know his bank account was being used for deposits of cash and he was unaware that it would be used to purchase crypto currency.

Jason Coulter for Holly Wilson said that she had got involved through her brother and she accepted that her bank account was used by Mr Sangiovanni to purchase crypto currency but she believed all transactions were legal.

She was promised payment for the use of her account but did not receive anything he said.

"She was hard pressed financially. She didn't suspect that anything illegal was happening. "

All defendants were bailed unconditionally to re-appear at the Gloucester Court for a case management hearing in February for a date and venue to be set for a four week trial.

● All defendants except Sara Buffin (who pleaded guilty) denied entering into an arrangement, namely receiving cash deposits into their bank accounts and transferring them into crypto currency on behalf of others, which they knew or suspected involved the use of criminal cash between February 8 and June 30, 2021.

●All defendants denied entering into an arrangement when they knew that the monies were the proceeds of criminal activity and transferred funds from their bank accounts to crypto currency platforms on behalf of another, between various dates.