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Generating $32,000 in 30 days selling a crypto-filled USB stick

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Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#81

Post by s73v3r_ »

htormey wrote: post #9
nicpottier wrote: post #6

Err.. aren't these guys going to run into regulatory problems? You need a license to sell this in the US. Not to mention selling crypto with credit cards is a great way to go broke unless you own the keys like Coinbase does. Also, why would you trust the keys they are sending you? Having someone else generate a wallet for you then sending it to you via a USB key sounds very very bad. I don't get this.

I agree. Have these guys done any legal due diligence on any of this? Any lawyers care to chime in? I thought you couldn’t do this in many states without a money transmitter license. Also, does this constitute financial advise? That’s also a big no no in the USA. The CoinTracker guys (current yc batch who make an app for tracking crypto) mentioned that as a reason for not offering a portfolio management product right…

"Have these guys done any legal due diligence on any of this?"

Something, something, move fast and ask for permission later.

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#82

Post by pfarnsworth »

joshstrange wrote: post #75
loourr wrote: post #31

If you guys are not a registered Money Service Business you should stop ASAP. What your doing sounds like a jailable offense. See the local bitcoin guy who went to prison for selling bitcoin in Florida.

My thoughts exactly, without a MTL (Money transmitting License) it seems like this runs afoul of a number of things including KYC. For the record MTL's for all 50 states will run you 6-12 months and ~300K when insurance, lawyer fees, and application fees are through (That's for the first year, subsequent years are cheaper but still).

They don't need an MTL because they're not transmitting money to another party or holding the money, they're just transmitting the money back to the original party.

However, it does seem like they are running afoul of other parts of regulations, like KYC and money laundering.

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#83

Post by stale2002 »

ceejayoz wrote: post #68
stale2002 wrote: post #67

Earlier quoted context omitted.

It is not a lottery. They are giving random RATIOS of cryptocurrency, that add up to the amount of USD that you pay. So if you pay 200 dollars, you could get 100$ of litecoin and 100$ of ethereum. OR you could recieve 25$ of doge + 175$ of Bitcoin. (both add up to 200$ USD. Minus their fee obviously) That's not a lottery. It is a fixed amount of USD value.

By the time you get it in the mail, it might be double. Or half. I wouldn't want to have to try to explain the volatility of altcoin markets to a grumpy Florida lottery regulator looking to charge you with something.

Cryptocurrencies are treated exactly the same as commodities, legally.

So it would be the same thing as if you shipped bars of gold and silver to someone.

It really isn't complicated.

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#85

Post by vkou »

exhilaration wrote: post #77
loourr wrote: post #31

If you guys are not a registered Money Service Business you should stop ASAP. What your doing sounds like a jailable offense. See the local bitcoin guy who went to prison for selling bitcoin in Florida.

See the local bitcoin guy who went to prison for selling bitcoin in Florida. Wait, selling bitcoin in one the many bitcoin meetups around the U.S. is illegal?

If I wire you some bitcoins for a suitcase full of cash, do you think that there may be some, ah, regulatory problems in this exchange?

What if I wire your bank account money in exchange for said suitcase of cash?

What if I'm a bank that credits your account, in exchange for said suitcase of cash, no questions asked?

(This is precisely what KYC laws exist to prevent.)

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#86

Post by therein »

paulie_a wrote: post #62
dragonwriter wrote: post #33

So, this startup is headquartered in Miami, FL, and is selling randomly amounts of random cryptocurrencies to people who pay a defined amount of real US currency. That is, it looks remarkably like a private, for-profit lottery. The operation of which, and even knowing assistance or promotion of which, is a third-degree felony under Florida state law. [0] [0] http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Disp…

I am surprised they are not in Boca Raton, hq of most American based scammers

Is there something specific about their local laws that make it so appealing?

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#89

Post by paulie_a »

therein wrote: post #86
paulie_a wrote: post #62

Earlier quoted context omitted.

I am surprised they are not in Boca Raton, hq of most American based scammers

Is there something specific about their local laws that make it so appealing?

I don't really think there is much of a jurisdictional reason but it just tends to be a popular location for scammers. It could just be due to the location in regards to retired people.

Re: Generating $32,000 in 30 days selling a crypto-filled USB stick

#90

Post by yorby »

nicpottier wrote: post #6

Err.. aren't these guys going to run into regulatory problems? You need a license to sell this in the US. Not to mention selling crypto with credit cards is a great way to go broke unless you own the keys like Coinbase does. Also, why would you trust the keys they are sending you? Having someone else generate a wallet for you then sending it to you via a USB key sounds very very bad. I don't get this.

crypto is just like pizza and has nothing to do with currencies in the US, no?
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