Arrest in Florida of Localbitcoins Trader

[bgaer]

Saw news today of the arrest of a trader of Bitcoins using the localbitcoins platform.   Now according to the article the undercover officer told the seller that he was going to use the Bitcoins to pay for stolen credit card numbers on a hack site - so in my opinion knowing that and still doing the trade the guy kinda deserves a kick in the ass - but I do not see the validity in the arrest.

If the US doesn't recognize Bitcoin as a currency - how can they possibly convict this guy of illegal financial transactions?

I have just started funding and was looking into getting a loan on btcjam and I actively use localbitcoins.   What does this mean for the future of those services if this is now deemed illegal?   If Florida gets a conviction on this more will soon follow.   

In a way it would be nice if they cleaned up the market, but in the meantime it will provide more fodder to take down the crypto markets imo.

Thoughts? 

Here is a link to the article I am referencing:
http://krebsonsecurity.com/2014/02/florida-targets-high-dollar-bitcoin-exchangers/

[Barek]

Thoughts? 

Look at other topics and join the already ongoing discussion?

[flipstyle]

Jesus christ, OP. 

lrn2read and lrn2forum.

The arrest was held for no other reason than baiting him for credit card fraud.  It doesn't matter if he was selling bitcoins or a used card.  They got him on fraud pretenses.  Nothing to do with bitcoin itself.

Simmer down and get ahold of yourself, goddamnt.

[flipstyle]

The arrest was held for no other reason than baiting him for credit card fraud.

Yes I agree that the charges related to fraud rather than to the use of bitcoin.  But unfortunately the way the article was written (as with many other articles in the media) it seems to infer that: bitcoin == illegal activity.  Thats how I would interperate the first few paragraphs of the article if I didn't know much about bitcoin.

That's why you read entire articles thoroughly before rushing to judgement.  The media machine is driven by key word titling and misleading excerpts.

[odolvlobo]

Though it is true that they caught him in a money laundering sting, the fact that they are targeting localbitcoins traders cannot be ignored. Since he was also charged with selling bitcoins without a license, it is hard to say that he would have been ok if he rejected the money laundering offer.

[2bfree]

Though it is true that they caught him in a money laundering sting, the fact that they are targeting localbitcoins traders cannot be ignored. Since he was also charged with selling bitcoins without a license, it is hard to say that he would have been ok if he rejected the money laundering offer.

Money laundering ? isn't that what the rullers are doing? they print money then launder it even drugs how do you thing heroin gets to america on airforce via us bases learn before giving bad freedom hating posts people.