Bitcoin Forum

I personally fail to see why this man deserves to be jailed.

I personally fail to see why this man deserves to be jailed.

SilkRoad was something that sparked bitcoin's discovery and surge into the 'mainstream'. Not only that but it was a revolutionary idea (the market, escrow system, general idea). You should be saying thanks.

All the banks should be jailed for supplying money to drug dealers, and various other criminals. HSBC is notorious for it's dealings in black market activity, jail those sods...

I know (at least i think) the thread is in jest, but it shows the double standards these monopoly people have trying to keep their way of life.

K.

Robert Faiella, 55, was sentenced by U.S. District Judge Jed Rakoff in Manhattan after pleading guilty to operating an unlicensed money transmitting business.

OK, I'm missing something here.

At that time bitcoin was considered digital asset (or better yet, its legal status wasn't clear). The guy was selling the asset on Shrem's platform (which was registered as legal business), so how is that making him a "money transmitter"? How did he brake the law (apart from not paying taxes on gains)?

How's selling something on ebay (including bitcoin) different than selling on bitinstant?

In the U.S. you can not have a business that moves BTC for dollars without a Money Transmitter License. You would be operating a Money Service Business. This is why bitcoin ATMs have not caught on here. The licensees are state by state and can cost as much as 25 million dollars for one state.
If you find this law unfair, then call your elected officials. They are the only people who can change this.  

Stupid fcking media at its best. Spreading BS titles and intentionally mislead general public about the "news"

There is no " involvement in an underground Bitcoin exchange selling the digital currency to users of the black market website Silk Road." charge. The charge is "unlicensed Money transmitter"

Basically he sold and bought BTC on behalf of his client. The key here is "behalf of someone else, ie. brokerage ". He did not buy or sell bitcoins for himself.

Another charge was tax offense related which often called "money laundering". Funny word for not paying the government their shares

All that add up to his sentence.

But was it clear at the time SR was operating? If there was no official guidance from authorities on how to treat bitcoin, the guy had every right to sell it just as any other asset (since it wasn't officially recognised as currency or financial instrument).

Actually at what point do you need MT license for selling BTC? Is there any trading threshold? Can you legally sell BTC1 for cash, as one-time sell, not a business activity?

Just a question: Would this have happened if he was using Monero and running the stuff over Maidsafe?

Couldn't actually agree more. Or maybe instead of jailing the banks make the kinda activity that they conduct legal to everybody. Level the playing field is what I say....

SilkRoad was something that sparked bitcoin's discovery and surge into the 'mainstream'. Not only that but it was a revolutionary idea (the market, escrow system, general idea). You should be saying thanks.

But was it clear at the time SR was operating? If there was no official guidance from authorities on how to treat bitcoin, the guy had every right to sell it just as any other asset (since it wasn't officially recognised as currency or financial instrument).

Actually at what point do you need MT license for selling BTC? Is there any trading threshold? Can you legally sell BTC1 for cash, as one-time sell, not a business activity?

SilkRoad was something that sparked bitcoin's discovery and surge into the 'mainstream'. Not only that but it was a revolutionary idea (the market, escrow system, general idea). You should be saying thanks.

I guess OP is being ironic about it..

we explode for all the wrong reasons. Bitcoin users are looked upon as child porn addicts and drug addicts to the people I've met.  We're apparently also a bunch of scammer thanks to bfl and mtgox and much more.  Yes there are a few good things like circle, dell, and Microsoft.

Early internet users were also looked upon as porn addicts.
Things change.  :)

Stupid fcking media at its best. Spreading BS titles and intentionally mislead general public about the "news"

There is no " involvement in an underground Bitcoin exchange selling the digital currency to users of the black market website Silk Road." charge. The charge is "unlicensed Money transmitter"

Basically he sold and bought BTC on behalf of his client. The key here is "behalf of someone else, ie. brokerage ". He did not buy or sell bitcoins for himself.

Another charge was tax offense related which often called "money laundering". Funny word for not paying the government their shares

All that add up to his sentence.

Early internet users were also looked upon as porn addicts.
Things change.  :)

Same as Charlie Shrem, as an example to the rest of us. Oversee the sale of fraudulent investments costing nations worldwide billions, no problem. Trade crypto before the law's figured out what the hell they are, do hard time. Double standards at its finest.

"God forbid we should ever be twenty years without such a rebellion. The people cannot be all, and always, well informed. The part which is wrong will be discontented, in proportion to the importance of the facts they misconceive. If they remain quiet under such misconceptions, it is lethargy, the forerunner of death to the public liberty . . . And what country can preserve its liberties, if its rulers are not warned from time to time, that this people preserve the spirit of resistance? Let them take arms. The remedy is to set them right as to the facts, pardon and pacify them. What signify a few lives lost in a century or two? The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is its natural manure."

Im not sure if that Rothchild quote is true tho, ive seen in a lot of documentaries but the source is untrue.

Im not sure if that Rothchild quote is true tho, ive seen in a lot of documentaries but the source is untrue.

Just a question: Would this have happened if he was using Monero and running the stuff over Maidsafe?

The American public is a brainwashed news whore that believes every story they're told if a reporter is the one saying it. All this bad press bombing the national media constantly will ensure Bitcoin remains a tool of the fringe extremists. The moral majority will continue to believe that Bitcoin is that "funny money" used by drug dealers and criminals.

I think the media will change its tune once the BTC landscape is a tool of wall street. With the Winkle-twats 'regulated' exchange due to launch soon it might not be too long before the media does a miraculously u turn. Look at Bill Gate's comments the other day. 

I don't know dude, these people are pretty stupid. 83% of these idiots believe a 2000 year old fairy tale and actually think some dead guy is coming to take them to a cloud where they will wear white robes and listen to Barry Manilow for infinity.

If these people followed what's really been happening on Wall Street for the last few decades it wouldn't exist anymore. These are the people that open their wallets and applaud government bailouts of major corporations and big banks. You think they're going to notice a little ETF and think it's a game changer?

You have made me doubt my own statement :) . My point is though that if the media changes it tune then the sheep will follow. I suspect if the money that backs media ends up having a stake in BTC then the media will change its tune causing the sheeple to change their tunes. I actually think something in the middle where it will be like gold. Most of the time the media will bash it, the big money buys low and then once the big money wants to offload the media all of sudden will be talking about it like its the opportunity of a lifetime ;). My 2c's

I often suspect the mindlessness of the sheep is much overrated, folks will take so much only mumbling to themselves but saying nothing, push a bit harder and they'll say out loud but do nothing, harder again and they stand up and speak out and from there things can avalanche very quickly once folks realise they're not alone. This is a sleeping daemon in society, issues generations old and believed long forgotten can suddenly wake up and engulf those blinded by the arrogance of power.

Lol, it wouldn't be a surprise. If a banker gets struck by lightning things could turn around fast :)

The American public is a brainwashed news whore that believes every story they're told if a reporter is the one saying it. All this bad press bombing the national media constantly will ensure Bitcoin remains a tool of the fringe extremists. The moral majority will continue to believe that Bitcoin is that "funny money" used by drug dealers and criminals.

I'm sure I've one of those diode-capacitor ladder thingies around somewhere, 200k volts on the top of JPM-C's door frame should do the trick :) Might have to push one back through a few times to get a good photo though, fast stuff that lightning.