...

[bitcart]

What effect will this have on the market, do people think? Will the auction oversell bitcoin like with gox auction?

[foodstamps]

Preet Bharara U.S. Attorney for the Southern District of New York <---- I hate this guy so much. he was what killed online poker for the U.S.


(he is who filed this lawsuit)

[TKeenan]

It's obvious the government took control of the coin.mx twitter and spread misinformation that it was a domain issue, so no one would know about the arrests until later.

https://twitter.com/coin_mx/with_replies



I think it's quite possible the government let the site run for a little while after they took control in order to collect information on customers.

This is good.  They are actually trying to find the fuckers behind cryptolocker.  Coin.mx was helping the Cryptolocker guys and the Fed is trying to get to them.  Good to see Coin.mx get fucked.

[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/

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...

Silk Road was what got Charlie Shrem on their radar.  But he was charged with " unlicensed money transmitting business.". 

So I expect that Coin.mx will likely be close to the same.  They were transmitting money without proper license (IE money laundering).

[MF Doom]

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

I wouldn't count on the feds doing anything quickly or reasonably.  I'm guessing this will take a long time, and they wont care whose btc are whose.  I'm guessing they will be auctioned off in a year or 2.

It is too bad for the legitimate customers who will be screwed, but it sounds like coin.mx deserved to be shut down for apparently knowingly allowing ransomeware criminals to launder money thorugh them.

[funkenstein]

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

I wouldn't count on the feds doing anything quickly or reasonably.  I'm guessing this will take a long time, and they wont care whose btc are whose.  I'm guessing they will be auctioned off in a year or 2.

Yeah, when gangsters confiscate your property, don' t hold your breath expecting it back. 

It is too bad for the legitimate customers who will be screwed, but it sounds like coin.mx deserved to be shut down for apparently knowingly allowing ransomeware criminals to launder money thorugh them.

You misread the report.  They helped victims to obtain coin, not helping ransomware creators to move coin. 

[baristor]

It might not be revelant here bt the feds in murica really do alot of BS,

Jus check out the story on aaron shwartz !

[unamis76]

They were running a unlicensed money transmitting business from the U and probably with US clients. they should have seen it coming. Don't people see this forum? Folks are arrested in the states for much less...

As for the rest, if they were helping ransomware or not, we can't know for sure...

[jwcastle]

Nice to know that the feds can make up charges any time they want.

[electerium]

Do people really think it is ok for ransomware thieves to cashout?

[findftp]

Just more bad press for Bitcoin.

I hope it'll never stop.
I'm not ready yet accumulating.

[entertheabyss]

fucking regulators. the whole point of bitcoin is that you dont need an id to use it. it is supposed to be decentralized and free. we need more darknet financial servies.

[funkenstein]

Do people really think it is ok for ransomware thieves to cashout?

Are you talking about the uniformed gangsters that took all the Coin.mx stuff?

I'm not sure I'm personally going to go after the guys who made their boots, for example. 

[funkenstein]

The lack of reading comprehension and substantial analysis here is dismal, almost worthless to discuss anything on bitcoin talk it seems. In the entire 18 page legal document there's one example of someone buying bitcoin from coin.mx for ransom ware. Some of you guys eat up what the media says without even thinking or researching.

Literally no useful information is in this thread, which is appalling. Are people just trying to get signature campaign money and posting brain dead garbage everywhere?

I'm just trying to stir things up cause I'm pissed off about how totally fucked the injustice system is to allow this kind of thing to go down.  Sorry bro. 

[notlist3d]

The lack of reading comprehension and substantial analysis here is dismal, almost worthless to discuss anything on bitcoin talk it seems. In the entire 18 page legal document there's one example of someone buying bitcoin from coin.mx for ransom ware. Some of you guys eat up what the media says without even thinking or researching.

Literally no useful information is in this thread, which is appalling. Are people just trying to get signature campaign money and posting brain dead garbage everywhere?

I think it is more useful for exchanges.  Make sure you have all your paperwork in line, or do not operate in the states you don't is really the end of story.

Some mentioned coinbase I don't think  we will see this effect coinbase.  If they are hit it would be a huge blow.   But coin.mx going down does not really to have changed BTC price much... so that is good.

[Amph]

fucking regulators. the whole point of bitcoin is that you dont need an id to use it. it is supposed to be decentralized and free. we need more darknet financial servies.

they should operate abroad and not in america where IRS and governments will control the fuck out of everything you can dream to do

i'm not aware of the rules in america, but if you have your business abroad they can't touch you i guess

[Gleb Gamow]

The lack of reading comprehension and substantial analysis here is dismal, almost worthless to discuss anything on bitcoin talk it seems. In the entire 18 page legal document there's one example of someone buying bitcoin from coin.mx for ransom ware. Some of you guys eat up what the media says without even thinking or researching.

Literally no useful information is in this thread, which is appalling. Are people just trying to get signature campaign money and posting brain dead garbage everywhere?

I guess you missed my post, eh?

[Gleb Gamow]

I have an unfortunate customer who wants to buy from me and have me send ransom Bitcoins directly to CryptoWall.

My question is would I be in legal trouble for helping the customer because I charge for my services?

If yes, would I be in trouble for helping the customer if I do not charge any service fee?

Any help would be appreciated!

** this transaction been completed as of September 26th.

Two people replied no, so he went and did it.

[bitcoinmasterlord]

Doesn't the accusation say that coin.mx KNEW that these coins were coming from ransomware? So it might not be because they traded bitcoins without a license but that they took part in a crime and not stopped it even though they knew it.

Possible?

[QuestionAuthority]

The lack of reading comprehension and substantial analysis here is dismal, almost worthless to discuss anything on bitcoin talk it seems. In the entire 18 page legal document there's one example of someone buying bitcoin from coin.mx for ransom ware. Some of you guys eat up what the media says without even thinking or researching.

Literally no useful information is in this thread, which is appalling. Are people just trying to get signature campaign money and posting brain dead garbage everywhere?

I think it is more useful for exchanges.  Make sure you have all your paperwork in line, or do not operate in the states you don't is really the end of story.

Some mentioned coinbase I don't think  we will see this effect coinbase.  If they are hit it would be a huge blow.   But coin.mx going down does not really to have changed BTC price much... so that is good.

No one needs to worry about Coinbase since it's a U.S. government honeypot anyway.