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Author Topic: [2017-10-27] Michigan Man Charged for Unlawful Bitcoin Exchange  (Read 3618 times)
CryptoLD
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October 28, 2017, 12:15:56 AM
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A Michigan man has been charged with running an unlicensed money transmitting business after selling nearly $150,000 in bitcoin online.

According to an indictment released by Detroit TV news services WD-IV Friday, 52-year-old Bradley Anthony Stetkiw ran an exchange through the LocalBitcoins website, conducting transactions at restaurants in the Bloomfield area. Stetkiw is alleged to have sold bitcoin as part of a business venture for approximately two years, at a volume that would make him subject to federal anti-money laundering regulations.

Of the total, the documents, filed with the U.S. District Court for the Eastern District of Michigan, assert Stetkiw sold more than $56,000 worth of bitcoin to federal agents through six meetings.

According to the indictment:

    "Operating under the user name 'SaltandPepper,' Stetkiw bought, sold and brokered deals for hundreds of thousands of dollars in bitcoins while failing to comply with the money transmitting business registration requirements set fort in Title 31, United States Code, Section 5330."

Stetkiw is notably not the first LocalBitcoins user to be charged for trading bitcoin.

Earlier this year, Detroit resident Sal Mansy plead guilty to the charge of operating an unlicensed money services business. He allegedly conducted $2.4 million-worth of transactions over a two-year period ending in July 2015.

Other arrests in Missouri and New York suggest actions against independent U.S. bitcoin sellers are becoming more common place.


Source : https://www.coindesk.com/michigan-man-charged-unlawful-bitcoin-exchange/

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October 28, 2017, 01:02:51 AM
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I would be worried if the amounts they sold/traded were lower. But if they sell 50.000$ in only six meetings then that means that this guy in fact does operate a - very probably full-time - exchange business.

That isn't a "private Bitcoin seller" anymore, and you would be charged for that in most countries of the world even if you didn't use Bitcoin but operated, for example, a Dollar-Euro exchange.

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jekjekman
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October 28, 2017, 01:58:50 AM
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I would be worried if the amounts they sold/traded were lower. But if they sell 50.000$ in only six meetings then that means that this guy in fact does operate a - very probably full-time - exchange business.

That isn't a "private Bitcoin seller" anymore, and you would be charged for that in most countries of the world even if you didn't use Bitcoin but operated, for example, a Dollar-Euro exchange.

So it means that even if the source of your income is from a crypto currency you still need to comply with existing taxation laws.
How are you suppose to calculate the taxable income from bitcoin if the price keeps on fluctuating do you need to declare if how
 much you bought the coin and how much you sold it?

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October 28, 2017, 07:53:49 AM
 #4

I would be worried if the amounts they sold/traded were lower. But if they sell 50.000$ in only six meetings then that means that this guy in fact does operate a - very probably full-time - exchange business.

That isn't a "private Bitcoin seller" anymore, and you would be charged for that in most countries of the world even if you didn't use Bitcoin but operated, for example, a Dollar-Euro exchange.
I agree that selling off 50.000$ in six meetings is quite a lot (the feds probably placed big buy orders to see if he would fall for it) but still 150.000 isn't a whole lot. The guy who traded 2 million back an forth would be a logical target but  this guy didn't make a fortune off of bitcoin from his exchange. I really wonder what sentences he's facing.

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October 28, 2017, 09:21:42 AM
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For me it does not matter what amount of money traded this guy. What is important is that it sets a precedent. Now based on this can bring to justice all bitcoin users for any amount. The United States will never legalize the use of bitcoin. They understand that the spread of bitcoin is the end of the dominance of the dollar. This is very bad news. Now the US will seek allies in the fight against bitcoin. I think we will never see what Amazon will accept payment in bitcoins. Sorry. Without trade bitcoins very soon we can all become victims of the government.

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October 28, 2017, 10:56:44 AM
 #6

The Feds are probably looking to make an example of this guy. He might be one of those unlucky few who fell for the line of federal agents. I wonder why they kept going back to him again and again.? Most probably to ensure that the amount he sold went over the statutory levels and they could nail him.

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October 28, 2017, 11:01:36 AM
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The Feds are probably looking to make an example of this guy. He might be one of those unlucky few who fell for the line of federal agents. I wonder why they kept going back to him again and again.? Most probably to ensure that the amount he sold went over the statutory levels and they could nail him.

If he buys or sells up to 50k a year, is that OK?
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