Bitcoin Attorney Will Answer All Questions:

[Peter Legal 555]

Please advise on the following. In a legal matter where the subject matter is a breach of contract and the funds at issue have been deposited in a Bitcoin a/c , will a court be able to "freeze/ preserve" that specific a/c and secure the funds therein ie preserve/secure the fund value at that point in time until the contractual legal issue has been resolved ? (I am fully aware that the laws pertaining to certain countries may not apply in mine).
Your kind reply will be appreciated.

[1713896835]

1713896835

[1713896835]

1713896835

[AttorneyBitcoin]

Answered in PM.

[theochino]

Would be lovely if you could spark and moderate discussion on the forums about my NY Lawsuit.

There is a lot of misunderstanding of it: http://www.article78againstnydfs.com

I have asked for the court transcripts of the first hearing and will post them as soon as they send them to me.

[AttorneyBitcoin]

Please forgive me I do not have the time to become involved in that discussion. i wish you the best.

George D. Greenberg, Esq.

[theochino]

The problem is that many people don't understand it and don't understand why it's important to donate.

For example, Nick Spanos of the Bitcoin Center explain it simply in under a minute:
https://twitter.com/A78gnstNYDFS/status/843340008903901185

[pawel7777]

Hello George, thanks for creating this thread, hope you don't mind me bumping it.

What's your expertise on proceeds from bitcoin gambling sites winnings? Assuming online gambling is legal in ones state/jurisdiction, but the gambling site itself is not registered/licensed anywhere - would such proceeds be deemed as illegal?

On one hand, I'm guessing that it's not the user's responsibility to check whether site is operating legally. On the other hand, anyone could create gambling site overnight and use it for money laundering.


Another one:

Is "51% attack" illegal (by US laws)? If a large bitcoin miner gains enough hashpower to perform a double-spend, would it be seen as a criminal behaviour? After all, there's no "hacking" involved, nor any other unauthorised access of information, and all the participants should be aware that Bitcoin protocol allows it to happen (all network operates on hope that hashpower will stay decentralised).

I appreciate there may not be an easy answer, as there's no precedent to it, but just curious on your opinion.

Personally, I don't see anything illegal in the act itself, but there's definitely an intent to deprive users/entities of their bitcoin wealth.

[AttorneyBitcoin]

Hello George, thanks for creating this thread, hope you don't mind me bumping it.

What's your expertise on proceeds from bitcoin gambling sites winnings? Assuming online gambling is legal in ones state/jurisdiction, but the gambling site itself is not registered/licensed anywhere - would such proceeds be deemed as illegal?

On one hand, I'm guessing that it's not the user's responsibility to check whether site is operating legally. On the other hand, anyone could create gambling site overnight and use it for money laundering.


Another one:

Is "51% attack" illegal (by US laws)? If a large bitcoin miner gains enough hashpower to perform a double-spend, would it be seen as a criminal behaviour? After all, there's no "hacking" involved, nor any other unauthorised access of information, and all the participants should be aware that Bitcoin protocol allows it to happen (all network operates on hope that hashpower will stay decentralised).

I appreciate there may not be an easy answer, as there's no precedent to it, but just curious on your opinion.

Personally, I don't see anything illegal in the act itself, but there's definitely an intent to deprive users/entities of their bitcoin wealth.

I have no expertise on gaming law as to BTC or any other gaming endeavor, however the user is responsible to know whether
his actions are legal or not.

As to 51% attack I agree that if there is intent to steal or defraud or destroy or manipulate for personal gain that it might be deemed an illegal act and the perpetrator could be subject to civil or criminal prosecution.

Best:

George D. Greenberg, Esq.

www.attorneybitcoin.com

[Anonymouskey]

is it illegal to run my bisiness without a licence>? a gaming website

[AttorneyBitcoin]

Your question is too general for me to answer effectively. Assuming you have a gaming web site in a state that allows it, you will need a business license and perhaps other types of licenses related to gaming.

Let's assume your gaming web site is legal and you have all the licenses required; is your question then whether or not laws related to gaming apply to BTC as the medium of wager? There have been many such sites closed down by the Feds and by States so I do not believe it is an escape hatch.

Best:

George D. Greenberg, Esq.

www.attorneybticoin.com

[samadamsbeer]

George, thanks for this. NH looks like it will explicitly define BTC as not a MSB https://legiscan.com/NH/bill/HB436/2017 once governor signs. Sounds like Nevada is in same boat. For these states, if one were to operate a cash>bitcoin ATM, drawing from a hot wallet (not an exchange), I assume one still needs to register with Fincen. In doing so what is the simplest way to comply with AML/KYC? For example requiring all transactions above a certain $ amount to supply a phone number or ID? Would like it to be simple from the customer and the ATM owner perspective. Does below a certain $ amount require no KYC procedure that the customer must supply?

[p2pm]

How ownership of bitcoins is defined? I mean technically it is just a knowledge of the private key. What if many people has/know the wallet private key but not all of them ever used it?

For example:
Some non-US person John (he is not very good with computers) ask his son Sam to buy some bitcoins for him, and Sam is a US tax resident.
Now assume that a Sam traded some time after that and earn more bitcoin/altcoins from his father bitcoins assuming that he manage his father capital. Does Sam need to pay US taxes in this case?

[AttorneyBitcoin]

George, thanks for this. NH looks like it will explicitly define BTC as not a MSB https://legiscan.com/NH/bill/HB436/2017 once governor signs. Sounds like Nevada is in same boat. For these states, if one were to operate a cash>bitcoin ATM, drawing from a hot wallet (not an exchange), I assume one still needs to register with Fincen. In doing so what is the simplest way to comply with AML/KYC? For example requiring all transactions above a certain $ amount to supply a phone number or ID? Would like it to be simple from the customer and the ATM owner perspective. Does below a certain $ amount require no KYC procedure that the customer must supply?

That's a lot of questions, lol! There are answers to all of them that have been researched and labored over Yes, you would still need to register with FinCEN and make a good faith effort to comply with AML and KYC. As to the other information, well, I paid dearly to get it so I charge to share it. You are welcome to contact me via PM. BTW, I'm not convinced that exchanging cash for BTC and the reverse is not acting as a money transmitter. Yes, there are some educated guesses that have to be made as the regulator's are not sure either. However there are steps that can be taken preemptively to give you some cover, at least for awhile.

Best:

George D. Greenberg, Esq.
www.attorneybitcoin.com

[AttorneyBitcoin]

How ownership of bitcoins is defined? I mean technically it is just a knowledge of the private key. What if many people has/know the wallet private key but not all of them ever used it?

For example:
Some non-US person John (he is not very good with computers) ask his son Sam to buy some bitcoins for him, and Sam is a US tax resident.
Now assume that a Sam traded some time after that and earn more bitcoin/altcoins from his father bitcoins assuming that he manage his father capital. Does Sam need to pay US taxes in this case?

Whomever claimed ownership of the coins would have to pay taxes on any gains, but ONLY when the owner converts (or has someone  on his behalf convert,) the BTC to Fiat.

Best:

George D. Greenberg, Esq.
www.attorneybitcoin.com

[Rabber]

I have a question about Coinbase and the IRS.


Say someone is accumulating cryptocurrency at Coinbase and the value sold and used to buy back more crypto or transferred to other wallets is less than $1k, nothing has been sent back to a bank account or withdrawn as cash. I assume there are hundreds of thousands of people (with a fairly low-level of transfer activity) in this category. How likely is the IRS to target a person like this for an audit if they do not report this activity?

[AttorneyBitcoin]

The answer is: Not likely.

However, that does not make it right. I'm a Citizen of this Country. Taxes are not the enemy.

Concentration of wealth and power and failure to fairly tax the upper one half of one percent is the problem.

Best:

George D. Greenberg, Esq.

www.attorneybitcoin.com

[theochino]

George,

You should explain to the folks what the two plea deals in Missouri and Detroit means for bitcoiners in the US and why they should be thinking about the future.   
By the way, my lawyer filed a new amended complaint: http://article78againstnydfs.com/raw.php
Should be a good read.

Regards,
Theo

[Wendigo]

Question: If I don't own a business and Bitcoin is my 'hobby' so to speak, how do I file my taxes when the profit is generated online, there is no record of that, and is on the basis of “for sport or recreation, not to make a profit". This would mean mostly Bitcoin sportsbetting and very rarely freelancing (which is basically doing odd jobs for people on this forum like many others do.)
Thank you in advance!                             

[Amph]

i have another question regarding minig, what is considerer a business activity, there is a threshold to overcome to make your activity a business level one?

for example there must be a difference between someone running a RIG for mining and someone else running a 10-100 rig farm, the first one as i see it should not be considered a business operation right?

otherwise buy this logic everyone with a gpu is someone running a business activity because he can mine and generate an income, and it doesn't make any sense...

[AttorneyBitcoin]

Question: If I don't own a business and Bitcoin is my 'hobby' so to speak, how do I file my taxes when the profit is generated online, there is no record of that, and is on the basis of “for sport or recreation, not to make a profit". This would mean mostly Bitcoin sportsbetting and very rarely freelancing (which is basically doing odd jobs for people on this forum like many others do.)
Thank you in advance!                             

First of all, wagering online, unless it is legal in your state and conducted in your state, is not a legal activity whether you use BTC or fiat.

I think that the tax man would view the calling of making a profit with BTC trading or BTC businesses a hobby or recreation and therefore not subject to taxation as a thinly veiled attempt to avoid paying taxes.


Best:

George D. Greenberg, Esq.
www.attorneybitcoin.com

[AttorneyBitcoin]

i have another question regarding minig, what is considerer a business activity, there is a threshold to overcome to make your activity a business level one?

for example there must be a difference between someone running a RIG for mining and someone else running a 10-100 rig farm, the first one as i see it should not be considered a business operation right?

otherwise buy this logi everyone with a gpu is someone running a business activity because he can mine and generate an income, and it doesn't make any sense...

If I am using a cpu, gpu or asic to mine bitcoin, when I convert it to fiat it is then considered income. In filing taxes you would be well advised to itemize and deduct everything that went into that mining including hardware, software, electricity, consultants and fees in the transfer and selling of the coins.

I can call it a hobby, recreation or business, it doesn't matter, I am engaged in money making activity that brings me income. Income is taxable. There are of course always exceptions, but not in the example given.

A threshold based on the volume of the activity is not really a good measure as to whether or not a business is being operated. Big or small it is all business. But typically those involved in a business venture have a business entity such as a corporation, although you can be a sole proprietor or have a joint venture or general  partnership, and also generally have a tax payer identification number and a license or licenses to conduct the business .

Best:

George D. Greenberg, Esq.
www.attorneybitcoin.com