Is this something she could have registered as a business properly to avoid this fate?
California Based P2P Trader Convicted of Illegal Money Transmission
11–20 of 61 posts
Re: California Based P2P Trader Convicted of Illegal Money Transmission
#12The part about these convictions that bugs me is that some of the people getting in trouble were definitely not aware that they were breaking the law. It surprises a lot of people when they find out it's illegal to buy and sell bitcoin for cash to strangers in the US like this (that is, with no license or reporting or discrimination). I hope most of those convicted don't get jail time unless they truly knew that it m…
Really, you make $300,000 a year and report no taxes and you think you're not doing something illegal?
Re: California Based P2P Trader Convicted of Illegal Money Transmission
#13The part about these convictions that bugs me is that some of the people getting in trouble were definitely not aware that they were breaking the law. It surprises a lot of people when they find out it's illegal to buy and sell bitcoin for cash to strangers in the US like this (that is, with no license or reporting or discrimination). I hope most of those convicted don't get jail time unless they truly knew that it m…
It's not unlike those who capriciously decide to day-trade then run afoul of taxation rules and limitations of operation so they end up losing a lot more money than expected.
Some like the individual in the article will end up being examples to others.
Re: California Based P2P Trader Convicted of Illegal Money Transmission
#14IMO Bitcoin is a commodity, not a currency. (Please do not downvote me for the opinion). Regulators and at least some judges have called it a commodity.
e.g.
https://www.cnbc.com/2018/03/07/cryptocurrencies-like-bitcoi...
The charge shouldn't be related to currency trading, but something related to failure to pay taxes on buying and selling commodities.
[edit: As usual, comments on bitcoin expressing a non-evangelist point of view get downvoted.]
Re: California Based P2P Trader Convicted of Illegal Money Transmission
#15The part about these convictions that bugs me is that some of the people getting in trouble were definitely not aware that they were breaking the law. It surprises a lot of people when they find out it's illegal to buy and sell bitcoin for cash to strangers in the US like this (that is, with no license or reporting or discrimination). I hope most of those convicted don't get jail time unless they truly knew that it m…
Really, you make $300,000 a year and report no taxes and you think you're not doing something illegal?
Would her paying taxes make this less illegal? If she was dealing with gold/diamonds instead of bitcoin would it be legal?
Re: California Based P2P Trader Convicted of Illegal Money Transmission
#16You can run to anarcho-libertarian-utopian ideals, but you can’t hide from the fact you still live under actual laws against such things, whether or not such laws are just.
If they really believe in their ideals, they should do the hard work to change the laws in their favor, or cleverly use already existing ones, instead of childishly isolating themselves from society and the government as outlaws.
There is a precedent for this: the 18th and 19th century religious communes -- some of them anarchist -- had popular support and were able to change US laws so that they could avoid taxes and live in peace as gated utopias in the way they wanted -- because they didn't antagonize the rest of society or the US government.
Or, put another way, they were anarchists that did politics maturely and succeeded (even though their utopias didn't).
Re: California Based P2P Trader Convicted of Illegal Money Transmission
#17Is this something she could have registered as a business properly to avoid this fate?
Realistically, probably not. Compliance with a lot of these types of laws is challenging and at times murky (especially in new areas).
That being said, from a practical perspective, ignoring compliance requirements in your area of business for whatever reason can lead to these outcomes. Make dangerous choices win dangerous prizes.
Re: California Based P2P Trader Convicted of Illegal Money Transmission
#18Court docket here: https://www.plainsite.org/dockets/38v97us7k/california-centr...
Interestingly, most documents are sealed by the court.
Re: California Based P2P Trader Convicted of Illegal Money Transmission
#19The part about these convictions that bugs me is that some of the people getting in trouble were definitely not aware that they were breaking the law. It surprises a lot of people when they find out it's illegal to buy and sell bitcoin for cash to strangers in the US like this (that is, with no license or reporting or discrimination). I hope most of those convicted don't get jail time unless they truly knew that it m…
This reminds me of AirBnB hosts or Uber drivers violating various laws. The platform (LocalBitcoins in this case) should be educating people about these laws so they can understand the risks of what they're doing.
Re: California Based P2P Trader Convicted of Illegal Money Transmission
#20The part about these convictions that bugs me is that some of the people getting in trouble were definitely not aware that they were breaking the law. It surprises a lot of people when they find out it's illegal to buy and sell bitcoin for cash to strangers in the US like this (that is, with no license or reporting or discrimination). I hope most of those convicted don't get jail time unless they truly knew that it m…
According the filing (linked elsewhere in this thread) she knowingly took funds (from an undercover agent) that she believed to be from drug sales... e.g. she intentionally provided a money laundering service.