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[turtlehurricane]

...

[tokeweed]

Are Bittrex, Cryptsy and Poloniex in danger of being shut down by the Feds?

[Amph]

Are Bittrex, Cryptsy and Poloniex in danger of being shut down by the Feds?

not cryptsy, they said they have every regulation needed to operate legally, i don't know about bittrex, but i would assume that intelligent operators know that governments are watching them if they deal with fiat and would take precautions

[RoadTrain]

This is kind've a big deal

Make me unsee it

[Mickeyb]

This is a well predicted behavior of the US government in my opinion. In the US everything has to be regulated and whatever poses a danger to the current system will in my opinion be attacked and extinguished.

I hope they don't act the same on Bitcoin but this is more likely than the other, positive behavior.

[notlist3d]

This is kind've a big deal https://www.fbi.gov/newyork/press-releases/2015/manhattan-u.s.-attorney-announces-charges-against-two-florida-men-for-operating-an-underground-bitcoin-exchange

It's not really new though. If you operate an exchange in a state you don't have right paperwork for.... you are asking to be in trouble.  It's considered money laundering.

I mean this happened before with another exchange look at Charile Shrim - http://www.coindesk.com/bitcoins-first-felon-charlie-shrem-begins-2-year-sentence/

[Epileptic_Neurosurgeon]

Indeed, US is probably one of (or the) worst country to operate in without proper licenses.   

[TrueBeliever]

Just more bad press for Bitcoin.

[bitcart]

This is kind've a big deal https://www.fbi.gov/newyork/press-releases/2015/manhattan-u.s.-attorney-announces-charges-against-two-florida-men-for-operating-an-underground-bitcoin-exchange

It's not really new though. If you operate an exchange in a state you don't have right paperwork for.... you are asking to be in trouble.  It's considered money laundering.

I mean this happened before with another exchange look at Charile Shrim - http://www.coindesk.com/bitcoins-first-felon-charlie-shrem-begins-2-year-sentence/

This is not even close to the same situation. Charlie Shrem was directly connected to silk road drug money, also he wasn't a true exchange like coin.mx is.

Hopefully this doesn't happen to Coinbase...

Coinbase comply with regulations (maybe even more than they need to) so they won't get shut down.

[bitcart]

Once your account reaches a certain level of activity, Coinbase ask you a number of questions as to how you are funding your account to buy btc and what they are for. So this makes them compliant with AML.

[medUSA]

This might be the first time a Bitcoin trader was arrested without any obvious connections to crimes or drug money. The only crime in the 18 page legal document is a customer bought bitcoins for ransomware, which isn't a big deal. If someone used visa to pay ransomeware I'm sure the government wouldn't arrest the visa executives.

It's not the first time, not even close. A legendary member here was arrested for trading Bitcoin on LocalBitcoin (charges dropped).
https://bitcointalk.org/index.php?topic=934268.0

I believe you are right, FEDs are clamping down hard on trading without license and KYC compliance. That is the reason I have high hopes for legit exchanges like Gemini. They are taking forever to come online, but I think a few of those around the world (in large cities with solid legal framework) would set a new scene for Bitcoin.

[Trouble821]

Once your account reaches a certain level of activity, Coinbase ask you a number of questions as to how you are funding your account to buy btc and what they are for. So this makes them compliant with AML.

Coinbase is unlikely to be shut down. It is refusing to do business with people in certain states because they are afraid of breaking their local regulations. It's extremely paranoid about who it does business with and people have had their accounts closed for buying from Coinbase and then selling on Local Bitcoins. It probably reports anything and everything just to comply with regulations.

[bitcart]

Once your account reaches a certain level of activity, Coinbase ask you a number of questions as to how you are funding your account to buy btc and what they are for. So this makes them compliant with AML.

Coinbase is unlikely to be shut down. It is refusing to do business with people in certain states because they are afraid of breaking their local regulations. It's extremely paranoid about who it does business with and people have had their accounts closed for buying from Coinbase and then selling on Local Bitcoins. It probably reports anything and everything just to comply with regulations.

Yeah I agree, Coinbase are overly cautious with their compliance of regulations.

[NorrisK]

So what happens to the customers balances? Will they be held by the feds until they figure out the money trails?

[bornil267645]

Just when you think things are getting simpler, then all on a sudden incidents like this appear. these kind of incidents make a bad impression on the outside world and bitcoin community.

[meono]

Just when you think things are getting simpler, then all on a sudden incidents like this appear. these kind of incidents make a bad impression on the outside world and bitcoin community.

Thats exactly the reason of this shutting down. Dont believe BS the feds say about the charges. The point isnt about to charge the owners,

[Amph]

So what happens to the customers balances? Will they be held by the feds until they figure out the money trails?

it well end the same as mtgox the whole amount will be auctioned, or otherwise if they can prove that those coins come from their wallet, they can consider something like 20%, like kraken did with mtgox?

[spazzdla]

Just when you think things are getting simpler, then all on a sudden incidents like this appear. these kind of incidents make a bad impression on the outside world and bitcoin community.

Thats exactly the reason of this shutting down. Dont believe BS the feds say about the charges. The point isnt about to charge the owners,

THis they are all just a bunch of pigs that have been told by there masters what to do.

[tokeweed]

Just when you think things are getting simpler, then all on a sudden incidents like this appear. these kind of incidents make a bad impression on the outside world and bitcoin community.

Who cares.  All the "community" cares about is getting rich out of this.

[Gleb Gamow]

Once your account reaches a certain level of activity, Coinbase ask you a number of questions as to how you are funding your account to buy btc and what they are for. So this makes them compliant with AML.

Sonny Vleisides of BFL used BitPay to launder over ten million dollars worth of bitcoins treating it like an exchange as I've fully documented. That one million dollars worth of bitcoins from HashTrade that BitPay processed, then showed the world via a press release, had not one satoshi of the bitcoins sent to BFL from HashTrade outside of BitPay's system.

Since 2013 I've inquired about that transaction and the ONLY time it was mentioned by any camp was from BFL's cockroach after I made the mistake of inquiring about a different entity.

https://bitcointalk.org/index.php?topic=150803.msg9353498#msg9353498

Hey, while you're here, explain to us monumental assholes really slow like we're Pakleds as to how it was possible for HashFast to pay BFL $1M USD via BTC through BitPay using the https://blockchain.info/address/1QAHVyRzkmD4j1pU5W89htZ3c6D6E7iWDs BWA that clearly belongs to BFL to pre-order Monarchs.

https://bitcointalk.org/index.php?topic=150803.msg9353552#msg9353552

I have no idea what you're talking about. HashFast never paid BFL anything, let alone $1M. That's the one completely idiotic question I'm answering, so you've used it up for everyone.  I hope you're proud of yourself.

That's how these lyin' cocksuckers play in this space!

At least I see that the LEOs are honing in on Jeff Ownby, where one day his ass will be in the slammer and his wife will be fuckin' some other dudes not wanting to wait forever for his release.

Anon Gambler: Here's my bitcoins. Let me play on your site.
Jeff Ownby: You're good to go, bud.
AG: Thanks.
AG: I wish to cash out now.
Jeff Ownby: Here you go.
Laura Ownby: Honey, when can be take our next vacation?
Jeff Ownby: I'm processing the expenses needed now, dear.