Threatened Over My Bitcoin Ad

[westkybitcoins]

So...

I find out about bitcoins, and am naturally excited, seeing its potential. I invest in some, and decide one of the big things that is (for now) holding it back is a lack of ready liquidity. Lots of people are reluctant to invest, thinking they'll be "stuck" with them, and those who want them may not have ready access.

I place an ad on craigslist, offering to buy and/or sell, for a small fee.

Within hours I get this email:

> You do understand that the bitcoin program is in fact not legal in this state. There is a 2007 law that outlawed virtual currency in KY. It falls under the tax codes. It is punishable by 1-5years and a min fine of 50k. You will remove this ad. If you fail to do so your account will be turned over to kirs. I will email from other accounts asking for info to get your address unles your dumb enough to reply. The facebook account and ad have 24h to be closed.
>
> I hate tax dodgers like you..
>
> http://westky.craigslist.org/sys/2427861692.html
>
>
> Sent from my iPad 2

Now, obviously I'm not taking anything down. I'm just floored by the level of hostility some folks have toward bitcoins. I'm sure the Silk Road stories aren't helping any, but still... wow. 

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[Bazil]

This should be interesting.  If the Kentucky revenue service does come after you run to the press.

[Anonymous]

I hate tax dodgers like you..

Hahaha.

[rezin777]

unles your dumb enough

Oh, the irony.

[tymothy]

Ask him to cite the law in question. Bet he can't or that the law doesn't apply to bitcoins.

Obviously buying and selling in bitcoins and not reporting gains to the IRS is tax evasion, but it's the "not reporting gains" portion that makes it illegal, not the bitcoins.

And who the hell reports income to the IRS on things they sell on craigslist anyways?

[Anonymous]

And who the hell reports income to the IRS on things they sell on craigslist anyways?

Said threatener. He's a government duck.

[triforcelink]

> Sent from my iPad 2

I seriously LOLd

I imagined some guy sitting on his couch browsing craigslist with his iPad 2 looking out for any money laundering scams

[westkybitcoins]

This should be interesting.  If the Kentucky revenue service does come after you run to the press.

I don't see why they should. Virtual currencies are illegal? Really? So Paypal, Linden Dollars, eBay Bucks, etc. are all in danger of being kicked out the state? Possessing or trading them will result in jail time? And this from KENTUCKY'S legislature? Please. It's a dumb, poorly-thought-out law, even if it actually exists (and I'm not exactly finding it right off. Go figure.)

[Freakin]

Was he so kind as to share the actual statute that banned virtual currencies?  

More importantly, is this the sort of thing that a state can regulate?  Isn't banning virtual currencies a potential hindrance to interstate commerce?  

I heard recently that an actual town established its own currency and that was legal under federal law.

[Bazil]

This should be interesting.  If the Kentucky revenue service does come after you run to the press.

I don't see why they should. Virtual currencies are illegal? Really? So Paypal, Linden Dollars, eBay Bucks, etc. are all in danger of being kicked out the state? Possessing or trading them will result in jail time? And this from KENTUCKY'S legislature? Please. It's a dumb, poorly-thought-out law, even if it actually exists (and I'm not exactly finding it right off. Go figure.)

All the more reason to run to the press.  Not only do you get to highlight a dumb law if it exists (I doubt that it does), but you also give Bitcoin publicity.

[Jaime Frontero]

And who the hell reports income to the IRS on things they sell on craigslist anyways?

Said threatener. He's a government duck.

for you, Atlas:

http://forum.bitcoin.org/index.php?topic=13344.0

[proudhon]

So...

I find out about bitcoins, and am naturally excited, seeing its potential. I invest in some, and decide one of the big things that is (for now) holding it back is a lack of ready liquidity. Lots of people are reluctant to invest, thinking they'll be "stuck" with them, and those who want them may not have ready access.

I place an ad on craigslist, offering to buy and/or sell, for a small fee.

Within hours I get this email:

> You do understand that the bitcoin program is in fact not legal in this state. There is a 2007 law that outlawed virtual currency in KY. It falls under the tax codes. It is punishable by 1-5years and a min fine of 50k. You will remove this ad. If you fail to do so your account will be turned over to kirs. I will email from other accounts asking for info to get your address unles your dumb enough to reply. The facebook account and ad have 24h to be closed.
>
> I hate tax dodgers like you..
>
> http://westky.craigslist.org/sys/2427861692.html
>
>
> Sent from my iPad 2

Now, obviously I'm not taking anything down. I'm just floored by the level of hostility some folks have toward bitcoins. I'm sure the Silk Road stories aren't helping any, but still... wow.  

[evoorhees]

LOL @ sent from his iPad hahaha. What a tool.

Just tell him Bitcoin isn't a "currency," it's just math. I don't think math is yet illegal, save within the borders of DC. For you to be prosecuted, the state would then have to prove that Bitcoin was indeed a currency, and wouldn't that be fun?

[westkybitcoins]

LOL @ sent from his iPad hahaha. What a tool.

Just tell him Bitcoin isn't a "currency," it's just math. I don't think math is yet illegal, save within the borders of DC. For you to be prosecuted, the state would then have to prove that Bitcoin was indeed a currency, and wouldn't that be fun?

Frankly, I hadn't even planned on responding to him. It's pretty clear his/her mind is already made up.

[tymothy]

Frankly, I hadn't even planned on responding to him. It's pretty clear his/her mind is already made up.
[/quote]

For the hilarity of all of us, I highly suggest you do respond.

[Freakin]

Offer him 50 bitcoins for his ipad and see what he says

[ryepdx]

For the hilarity of all of us, I highly suggest you do respond.

Agreed. You shouldn't let people make uncontested claims like that anyway. At least ask him to cite the statute. Post it back here if he replies. I'm really curious to see if there's actually something like that on Kentucky's books.

[westkybitcoins]

For the hilarity of all of us, I highly suggest you do respond.

Agreed. You shouldn't let people make uncontested claims like that anyway. At least ask him to cite the statute. Post it back here if he replies. I'm really curious to see if there's actually something like that on Kentucky's books.

Hmm.

Sent the following:

Hi!

As I'm not in this to facilitate illegal activities, could you cite the statute illegalizing virtual currencies?

Much appreciated

I am a bit curious as to how he'll respond.

[SgtSpike]

Offer him 50 bitcoins for his ipad and see what he says

Hahahaha, DO EEET!  Please!

[niemivh]

Hopefully the community learns not to be me such cowards as we've all be conditioned to be since birth.

I'd like you to respond to him.  I would.

Ask him to go to the Cayman islands where Trillions are laundered yearly since he's such a Defender of Justice.

Oh yeah, don't forget to tell him to bring his crime-fighting iPad2.