Americans jail a 24 year old for selling bitcoins wthout asking for ID

[bitChipper]

If you thought this was bad read the case of Jason Klein, middle aged family man nearly sentenced to years in prison just for selling bitcoin.

http://time.com/5161663/bitcoin-sting-jason-klein-crypto-irs-money-transmitter/

It goes to show the lack of understanding by LE and the clandestine tactics they use to basically label someone a criminal.

TLDR- He ended up getting a reduced sentence to probation after they had to spend all their money and get the whole town to vouch for him....it's sad really. I am embarrassed to be American anymore 

[bob3772]

If you thought this was bad read the case of Jason Klein, middle aged family man nearly sentenced to years in prison just for selling bitcoin.

http://time.com/5161663/bitcoin-sting-jason-klein-crypto-irs-money-transmitter/

It goes to show the lack of understanding by LE and the clandestine tactics they use to basically label someone a criminal.

TLDR- He ended up getting a reduced sentence to probation after they had to spend all their money and get the whole town to vouch for him....it's sad really. I am embarrassed to be American anymore 

It sounds really quite ridiculous, I like how it says they neglected to comment on why he was targeted. I do feel like there's probably more behind the story than they're letting on.

It mentions how they said they were going to use the bitcoin to buy drugs. I don't know exactly but I don't see how that's any slight on his part. If for example you have an employee and you pay them and they go out and buy drugs that's not your fault.

[bitChipper]

If you thought this was bad read the case of Jason Klein, middle aged family man nearly sentenced to years in prison just for selling bitcoin.

http://time.com/5161663/bitcoin-sting-jason-klein-crypto-irs-money-transmitter/

It goes to show the lack of understanding by LE and the clandestine tactics they use to basically label someone a criminal.

TLDR- He ended up getting a reduced sentence to probation after they had to spend all their money and get the whole town to vouch for him....it's sad really. I am embarrassed to be American anymore 

It sounds really quite ridiculous, I like how it says they neglected to comment on why he was targeted. I do feel like there's probably more behind the story than they're letting on.

It mentions how they said they were going to use the bitcoin to buy drugs. I don't know exactly but I don't see how that's any slight on his part. If for example you have an employee and you pay them and they go out and buy drugs that's not your fault.

It is pretty ridiculous....but it's just open season on anyone that's involved in any kind of bitcoin transaction that may be tied to money laundering.

But where is the victim ya know?

[bob3772]

If you thought this was bad read the case of Jason Klein, middle aged family man nearly sentenced to years in prison just for selling bitcoin.

http://time.com/5161663/bitcoin-sting-jason-klein-crypto-irs-money-transmitter/

It goes to show the lack of understanding by LE and the clandestine tactics they use to basically label someone a criminal.

TLDR- He ended up getting a reduced sentence to probation after they had to spend all their money and get the whole town to vouch for him....it's sad really. I am embarrassed to be American anymore 

It sounds really quite ridiculous, I like how it says they neglected to comment on why he was targeted. I do feel like there's probably more behind the story than they're letting on.

It mentions how they said they were going to use the bitcoin to buy drugs. I don't know exactly but I don't see how that's any slight on his part. If for example you have an employee and you pay them and they go out and buy drugs that's not your fault.

It is pretty ridiculous....but it's just open season on anyone that's involved in any kind of bitcoin transaction that may be tied to money laundering.

But where is the victim ya know?

Well if they are actually involved in money laundering then there are implied victims. Money is not laundered for no reason and a lot of it will be crime related. It's just how much blame can you actually attribute of that to the guy who's facilitating it? If not him then it would be someone else.

[rehydrogenated]

I thought a US judge ruled that bitcoin was a commodity...

Flour is a commodity. So you are saying if the store sells me some flour they need to ID me and ask me for my KYC information? I buy millions of dollars worth of copper for the company I work for every day, nobody asks me for KYC info.

The US government is going completely insane worrying about something they will come to realize they cannot stop.

Don't get me wrong, this guy should have reported his sales to the IRS. But I think the over-zealousness here on behalf of law enforcement is a problem.

[patrickreiner]

Yeah by selling bitcoins to someone for cash, if that cash is from illegal activities, you are money laundering which is a crime. I would not recommend selling bitcoin to people you don't know.

[spiker777]

We live in a world where people can be jailed for not checking somebody's ID. They can be jailed for trying to make a little bit of money. ONE YEAR in jail. A FUCKING YEAR? This is an outrage, and the community should not stand for it. Taxation is legalized theft, or forced monopolization.

[bitChipper]

I thought a US judge ruled that bitcoin was a commodity...

Flour is a commodity. So you are saying if the store sells me some flour they need to ID me and ask me for my KYC information? I buy millions of dollars worth of copper for the company I work for every day, nobody asks me for KYC info.

The US government is going completely insane worrying about something they will come to realize they cannot stop.

Don't get me wrong, this guy should have reported his sales to the IRS. But I think the over-zealousness here on behalf of law enforcement is a problem.

This is a really good point, they categorize it as property (commodity) but then other agencies pretty much treat it as a currency. But this type of stuff isn't so new, Charlie Shrem got hit with the same kind of deal, facilitating money laundering. Atleast that's what I remember reading about his situation with bit instant.

[Riser7]

Well, to tell the truth, local dealers are the best way to sell coins if you need smaller amounts of cash. With larger sums, it is best to go the right way and pay the tax. But it would be nice to see that more regulated until then people with less money will have to find their own way because they don't have tools like rich ones.

[JesusCryptos]

This is totally sick. He has been doing the same that thousands of people have been doing for years everywhere, but the Land of the Free is sending him to prison because he didn't act as an state officer asking IDs to people. No comment...

[franky1]

the title is misleading
it should be
man jailed for accepting large amounts of FIAT, thats beyond personal trading amounts and did not declare himself as a FIAT money business nor follow fiat money regulations

alot of people think that just because half of a trade is bitcoin (other half being fiat) that some how fiat laws dont apply
if your going to handle fiat then expect to follow fiat laws

if you hate fiat laws then dont handle fiat.. instead trade bitcoin for bread, milk, baked beans, toilet paper.. and you will not be treated as a money business but as a retailer.. its as simple as that