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[turtlehurricane]

...

[RGBKey]

I get all good reviews from my actual customers. A couple of other local dealers took the liberty of leaving me negative reviews even though we have never done business. Also it seems like half the trade requests I get are from cops so I ignore almost all of them. It's a toxic marketplace that can bring trouble your way, so I barely use it.

You have cops that send you requests? How do you know that they are cops? I haven't been here in a while, but refresh my memory, it's not illegal, right?

[eternalgloom]

I get all good reviews from my actual customers. A couple of other local dealers took the liberty of leaving me negative reviews even though we have never done business. Also it seems like half the trade requests I get are from cops so I ignore almost all of them. It's a toxic marketplace that can bring trouble your way, so I barely use it.

That sucks, how much sales have you lost over this?
And indeed as the previous post said, how do you know that you get trade requests from cops?

[RGBKey]

I get all good reviews from my actual customers. A couple of other local dealers took the liberty of leaving me negative reviews even though we have never done business. Also it seems like half the trade requests I get are from cops so I ignore almost all of them. It's a toxic marketplace that can bring trouble your way, so I barely use it.

You have cops that send you requests? How do you know that they are cops? I haven't been here in a while, but refresh my memory, it's not illegal, right?

I got about 5-10 different requests for bitcoins for ransom ware, not half of all my requests so I was exaggerating, but they are obviously fishing for bitcoin dealers. Only cops explicitly tell you things like that.

You mean like drug dealers? Your wording is confusing me. So selling bitcoins isn't illegal, right?

[DannyHamilton]

I've been active on localbitcoins since it started.  I've done many trades with people that I knew were cops, and several trades with people that I thought were probably cops.  So far, it's never been a problem.  Cops are people too, and some of them are very interested in being involved in the bitcoin community.

[gentlemand]

I used it 2013 quite a bit. I think those were considerably more innocent times on there. Only once was I asked for any ID from a seller. Now it seems to be mandatory.

[RGBKey]

I get all good reviews from my actual customers. A couple of other local dealers took the liberty of leaving me negative reviews even though we have never done business. Also it seems like half the trade requests I get are from cops so I ignore almost all of them. It's a toxic marketplace that can bring trouble your way, so I barely use it.

You have cops that send you requests? How do you know that they are cops? I haven't been here in a while, but refresh my memory, it's not illegal, right?

I got about 5-10 different requests for bitcoins for ransom ware, not half of all my requests so I was exaggerating, but they are obviously fishing for bitcoin dealers. Only cops explicitly tell you things like that.

You mean like drug dealers? Your wording is confusing me. So selling bitcoins isn't illegal, right?

Ransomware is when a hacker takes over your computer and demands bitcoin. Selling bitcoins to victims of ransomware is 100% illegal. Selling bitcoins when there's no obvious crime is not illegal, just grey area.

Oh okay, I wasn't aware that selling to victims of ransomware was illegal. I do hate ransomware with a burning passion though, and I feel incredibly sorry for anyone that's affected by it.

[Soros Shorts]

I get all good reviews from my actual customers. A couple of other local dealers took the liberty of leaving me negative reviews even though we have never done business. Also it seems like half the trade requests I get are from cops so I ignore almost all of them. It's a toxic marketplace that can bring trouble your way, so I barely use it.

You have cops that send you requests? How do you know that they are cops? I haven't been here in a while, but refresh my memory, it's not illegal, right?

I got about 5-10 different requests for bitcoins for ransom ware, not half of all my requests so I was exaggerating, but they are obviously fishing for bitcoin dealers. Only cops explicitly tell you things like that.

You mean like drug dealers? Your wording is confusing me. So selling bitcoins isn't illegal, right?

Ransomware is when a hacker takes over your computer and demands bitcoin. Selling bitcoins to victims of ransomware is 100% illegal. Selling bitcoins when there's no obvious crime is not illegal, just grey area.

Is buying bitcoins to pay for ransomware illegal as well? It should be, and if it is not then the law is retarded.

[RGBKey]

I get all good reviews from my actual customers. A couple of other local dealers took the liberty of leaving me negative reviews even though we have never done business. Also it seems like half the trade requests I get are from cops so I ignore almost all of them. It's a toxic marketplace that can bring trouble your way, so I barely use it.

You have cops that send you requests? How do you know that they are cops? I haven't been here in a while, but refresh my memory, it's not illegal, right?

I got about 5-10 different requests for bitcoins for ransom ware, not half of all my requests so I was exaggerating, but they are obviously fishing for bitcoin dealers. Only cops explicitly tell you things like that.

You mean like drug dealers? Your wording is confusing me. So selling bitcoins isn't illegal, right?

Ransomware is when a hacker takes over your computer and demands bitcoin. Selling bitcoins to victims of ransomware is 100% illegal. Selling bitcoins when there's no obvious crime is not illegal, just grey area.

Is buying bitcoins to pay for ransomware illegal as well? It should be, and if it is not then the law is retarded.

I would assume that if it's illegal to sell for that reason, that it's also illegal to buy them for that reason.

[Quickseller]

I get all good reviews from my actual customers. A couple of other local dealers took the liberty of leaving me negative reviews even though we have never done business. Also it seems like half the trade requests I get are from cops so I ignore almost all of them. It's a toxic marketplace that can bring trouble your way, so I barely use it.

You have cops that send you requests? How do you know that they are cops? I haven't been here in a while, but refresh my memory, it's not illegal, right?

I got about 5-10 different requests for bitcoins for ransom ware, not half of all my requests so I was exaggerating, but they are obviously fishing for bitcoin dealers. Only cops explicitly tell you things like that.

You mean like drug dealers? Your wording is confusing me. So selling bitcoins isn't illegal, right?

Ransomware is when a hacker takes over your computer and demands bitcoin. Selling bitcoins to victims of ransomware is 100% illegal. Selling bitcoins when there's no obvious crime is not illegal, just grey area.

How is selling bitcoin to a victim of ransomeware illegal? If they wish to pay to have their files unlocked, that is their own choice, plus sometimes, the economic damage caused by not paying the ransom would be greater then paying it.

Not only that, but just because someone is a victim of ransomeware, does not mean they should be permanently blacklisted from ever buying bitcoin It sounds like you are being overly paranoid about who you are willing to trade with.

[DannyHamilton]

I don't know what state or country you're in,

Chicago.

Illinois.

USA

I've sold bitcoins to (and bought bitcoins from) cops, lawyers, judges, and politicians.

[RGBKey]

I don't know what state or country you're in,

Chicago.

Illinois.

USA

I've sold bitcoins to (and bought bitcoins from) cops, lawyers, judges, and politicians.

I think he's just talking about the ones in Florida that apparently just try to get you arrested because some cops are dicks.

[Soros Shorts]

How is selling bitcoin to a victim of ransomeware illegal?  

I am not 100% sure but is sounds like having something to do with facilitating a crime. Just like paying a ransom to ISIS to not chop off the head of your kidnapped family member is technically a crime in the US, but one which is seldom prosecuted because it would make the authorities look bad. On the other hand prosecuting bitcoin dealers on technicalities seems to be the name of the game these days.

[gentlemand]

Selling Bitcoin to victims of ransomware is 100% illegal and I am certain about that. It's enough to land you in prison for money laundering.

Wow. That's an angle i'd never really considered. Are there actual precedents for that?

[AgentofCoin]

Selling Bitcoin to victims of ransomware is 100% illegal and I am certain about that. It's enough to land you in prison for money laundering.

Wow. That's an angle i'd never really considered. Are there actual precedents for that?

Can you provide me a link or anything to this being an actual law on the books?
This is important information if true.
I'm not a trader on localbitcoins, but would I be obligated to ask what the bitcoins will be used for, before selling?

Edits: corrected typos

[Quickseller]

How is selling bitcoin to a victim of ransomeware illegal?  

I am not 100% sure but is sounds like having something to do with facilitating a crime. Just like paying a ransom to ISIS to not chop off the head of your kidnapped family member is technically a crime in the US, but one which is seldom prosecuted because it would make the authorities look bad. On the other hand prosecuting bitcoin dealers on technicalities seems to be the name of the game these days.

I was under the impression that the Government has actually facilitated the paying of ransom when family members were willing to bankroll the payment of a ransom. I also know that a local Police agency actually paid the ransom on ransomeware.

The only angle that I can think of this being illegal would be if a seller were to charge such high prices above the market (exchange) rate, that prosecutors would argue that the seller is engaging in extortion, however this would only be speculation (and would be a long shot legally IMO).

I don't know what state or country you're in,

Chicago.

Illinois.

USA

I've sold bitcoins to (and bought bitcoins from) cops, lawyers, judges, and politicians.

I believe he is referring to cops trying to buy from him acting as cops as part of the deal. (e.g. trying to catch him engaging in doing something illegal and collect evidence of such)

I would doubt that the Mayor of Chicago would purchase bitcoin from you acting as the Mayor of Chicago, but would rather buy from you as a private citizen.

[DannyHamilton]

The only angle that I can think of this being illegal would be if a seller were to charge such high prices above the market (exchange) rate, that prosecutors would argue that the seller is engaging in extortion, however this would only be speculation (and would be a long shot legally IMO).

There are two problems that the seller can run into.

First, they may be required to have registered with FinCEN as a Money Service Business (MSB).  If they are selling as a business and have not done so, they can be prosecuted.

Secondly, if they are registered as an MSB, they are required to report certain activities to the authorities via a Suspicious Activity Report (SAR).

You can see this in turtlehurricane's post.

- snip -
in violation of federal anti-money laundering laws, MURGIO never filed any suspicious activity reports regarding any of the transactions.

[Herbert2020]

i am no longer using localbitcoins anymore for some time now, i don't like the system they have there. it is being abused and as a result the number of scammers is growing there. no i only sell to people who i know and worked with before.

[ultimo_dragon]

Notice that this type of fuckery only takes place in Florida. We saw a case last year in which a guy got knocked for selling coins for cash in Florida.

Can't really classify this as FUD, but I know several guys that sell for cash and never had any issues, even people who have sold to police.

So moral of the story: stay outta Florida (and now NY) with your coins.

[TheButterZone]

Having to file a SAR is a 5th Amendment violation, especially under an economically totalitarian regime that won't even let a child dispense lemonade from a container into disposable cups they just bought from a grocery store, without a fucking permit.

https://en.wikipedia.org/wiki/Self-incrimination#Truthful_statements_by_an_innocent_person