Mishelle Posted January 28, 2014 Posted January 28, 2014 In case y'all haven't seen it yet http://money.cnn.com/2014/01/27/technology/security/bitcoin-arrest/
Wesley Posted January 28, 2014 Posted January 28, 2014 Just for clarity, Bitcoin doesn't have a CEO and he is a CEO of an exchange. His exchange site hasn't been operational for a while (possibly because of this) and used to be one of the easiest ways to get bitcoin. Charlie Shrem is also of the ancap/libertarian bend and did some work with AVTM where he was a guest on the show and participated in debates and such. It seems to me that all he did was exchange bitcoins, and then when things looked suspicious twith what his friend was doing he might've said to the guy "don't look so suspicious" instead of telling the authorities on him. I don't know if there are laws that require you to "tattle" when suspicious activity might be occurring, but overall by what was in the story it looks like their evidence isn't super strong. I like the guy and hope he isn't held captive for too long.
ribuck Posted January 28, 2014 Posted January 28, 2014 As you say, Bitcoin has no CEO, and Charlie Shrem was CEO of an exchange. But he is also on the board of the Bitcoin Foundation (an unofficial industry body). His exchange was registered as a money service business, and he was the designated compliance officer. As such, there was an unambiguous legal requirement for him to report any transaction for which there was the slightest whiff of suspicion. So I think the prosecution will find it easy to secure a conviction.
Wesley Posted January 28, 2014 Posted January 28, 2014 As you say, Bitcoin has no CEO, and he is CEO of an exchange. But he is also on the board of the Bitcoin Foundation (an unofficial industry body). His exchange was registered as a money service business, and he was the designated compliance officer. As such, there was an unambiguous legal requirement for him to report any transaction for which there was the slightest whiff of suspicion. So I think the prosecution will find it easy to secure a conviction. Wow, that's really unfortunate.
dsayers Posted January 28, 2014 Posted January 28, 2014 Find a scapegoat and parade him in front of everybody to maintain the appearance of monopoly of force being just and necessary. To be clear, money laundering is more akin to "protecting stuff we do not approve of" than it is to "harming other people." Unless the money laundering was for things that violate the self-ownership of others, then it's really no different than driving a route alternate to one you believe is ripe with carjackers. It would be like the carjackers bringing you in for vehicle laundering.
cobra2411 Posted March 3, 2014 Posted March 3, 2014 I find this all very amusing. The state approved banks have been caught numerous times laundering money for drug cartels as well as other "illegal" actions and they get fined a percentage of the profits they made and no executives ever go to jail. You'll hear some blurb about a bank receiving a record breaking fine with no mention that it was about 3% of the total profit from their "illegal" venture. Several lawmakers have called for increased regulation of Bitcoin in light of the currency's heightened privacy, given that they can be traded without using names and are difficult to trace to an individuals.BS. One of the issues I have with bitcoins is that in order to be authenticated there has to be a transaction history and once you get a hold of that you will know everyone who ever touched that coin. Sure you won't have a name, address, SSN, but you'll have a hell of a lot more than if someone used cash. Oh, and cash can be traded without using names and can be difficult to trace to individuals... Propaganda disguised as journalism...
J-William Posted March 4, 2014 Posted March 4, 2014 I find this all very amusing. The state approved banks have been caught numerous times laundering money for drug cartels as well as other "illegal" actions and they get fined a percentage of the profits they made and no executives ever go to jail. You'll hear some blurb about a bank receiving a record breaking fine with no mention that it was about 3% of the total profit from their "illegal" venture. Propaganda disguised as journalism... Well you see his problem is that he is not "contributing to the system" (AKA: he hasn't greased the right palms) It's only by preserving the integrity of such wonderful systems that we can have wonderful things like bank bailouts. Please think of the executives on Wall Street! How could they afford to have the dents from running over hobos taken out of the bumper of their Rolls Royces without the billions of dollars that we kind tax payers contribute to their charitable companies? Think of the children wont you!!!???
cynicist Posted March 5, 2014 Posted March 5, 2014 I actually spoke to this guy on IRC in #bitcoin. It's really sad because his parents had to mortgage two homes just to pay his bail. (it was something ridiculous, can't remember the exact amount) He obviously didn't go into specifics in case the authorities were monitoring the chat but basically this is the result of an e-mail he sent that told someone how to avoid the mandatory $10k reporting regulation that is supposed to limit money laundering. He didn't actually launder any money. He seemed like a decent guy so I hope he doesn't get into too much more trouble over this.
Wesley Posted March 5, 2014 Posted March 5, 2014 Yea, I have also heard the charges are somewhat silly. Obviously, you have a better source of information than I did, but I heard that the money laundering was that he had exchanged money on his exchange who had exchanged money with some people, some of whom might be buying drugs and that by this standard every banker in the world should be in jail. I also really hope that this garbage doesn't stick. Talking about a possible loophole in a regulation doesn't seem illegal to me either.
Viam Fec Posted March 5, 2014 Posted March 5, 2014 This is another proof that Bitcoin trumps Fiat. You don't see the heads of big banks arrested even though many of them have and are commiting horrendous crimes that injure millions of people. Mt Gox collapsing is just what should happen in a free market. If Gox were a bank, it would get bailed out by taxpayers and be free to continue its scam, just as the big banks continue to do to this day.
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