Need I worry?

[Basil3]

I recently started selling for cash in my neighborhood (in the US) through Localbitcoins and quickly buying back through Coinbase - all small amounts, more for fun and to promote Bitcoins than to make much money. I have quickly developed a customer who has been buying from me on a regular basis - between $100 and $200 a time and as often as a couple of times a week - always wants to meet up pretty quickly. I never ask people why they are buying bitcoins, but I can't help wondering if this person is using me as their regular Bitcoin supplier to buy drugs. Otherwise, why not open their own Coinbase account or buy larger amounts less frequently?

Do I need to worry? Do I have any legal exposure in case the authorities in the future trace Bitcoins spent on drugs through a website to my account on Coinbase? I do plan to pay taxes on the small amount of money I have made (at this point, less than $100). I'd hate to find myself getting in trouble through something that essentially is just a hobby.

I appreciate everyone's replies and will appreciate them even more if you can mention your credentials and/or experience.

Tks

[Flashman]

I don't see money mart getting into trouble when they're cashing checks for people to buy drugs...

[odolvlobo]

You aren't doing anything wrong and you have no reason to suspect that your customer is doing anything wrong.

Consider this: suppose your customer was instead withdrawing $100 to $200 from an ATM every few days to buy drugs. What do you think they would do to his bank? I think they would do nothing.

[Bono]

Why don't you ask him and find out?

[DannyHamilton]

If you are concerned, you should have a conversation with a lawyer familiar with the AML & KYC laws in your state.

Your biggest legal exposure is likely to be the fact that you are moving cash for someone without being able to identify them.  Several of the responses here have mentioned banks, ATMs, and local check cashing locations as examples, but all of those business maintain records that include identification of the customer.  If law enforcement comes knocking with a subpoena, they are able to provide name, address, and in most cases social security number or state ID number.  Can you say the same?

[Zombie123]

I recently started selling for cash in my neighborhood (in the US) through Localbitcoins and quickly buying back through Coinbase - all small amounts, more for fun and to promote Bitcoins than to make much money. I have quickly developed a customer who has been buying from me on a regular basis - between $100 and $200 a time and as often as a couple of times a week - always wants to meet up pretty quickly. I never ask people why they are buying bitcoins, but I can't help wondering if this person is using me as their regular Bitcoin supplier to buy drugs. Otherwise, why not open their own Coinbase account or buy larger amounts less frequently?

Do I need to worry? Do I have any legal exposure in case the authorities in the future trace Bitcoins spent on drugs through a website to my account on Coinbase? I do plan to pay taxes on the small amount of money I have made (at this point, less than $100). I'd hate to find myself getting in trouble through something that essentially is just a hobby.

I appreciate everyone's replies and will appreciate them even more if you can mention your credentials and/or experience.

Tks

And you are saving all data for these cash transactions as you need to report your income and pay tax........... ? oh wait whats that

[peat]

Why don't you ask him and find out?

nah I don't recommend this... best not to know. At least then you can plead ignorance.
(Just in case he's stupid enough to tell you the truth and it is in fact drugs)

Good mining. May your hashrates be high

[odolvlobo]

Why don't you ask him and find out?

nah I don't recommend this... best not to know. At least then you can plead ignorance.
(Just in case he's stupid enough to tell you the truth and it is in fact drugs)

The better reason to not ask is that it is none of your damn business.

[Bono]

Why don't you ask him and find out?

nah I don't recommend this... best not to know. At least then you can plead ignorance.
(Just in case he's stupid enough to tell you the truth and it is in fact drugs)

The better reason to not ask is that it is none of your damn business.

Sounds like someone is a drug dealer.

[Duane Vick]

If cops come knocking, dont say a word to them, even if you are guilty of nothing and just want to profess your innocence. Say nothing and if they arrest you, say even less. Let an attorney or public defender talk to them.  Much of a lawyer's work is trying to dig their clients out of a hole they put themselves in.

Make the police do their own work. I'm never surprised at how many people are so desperate to avoid the next few days in jail that they try to talk their way out of it,  only to give the police enough info to seek charges. Those same people end up pleading guilty to lesser charges because they didn't give their attorney anything to work with.

[edutBTC]

Yes it's possible to trace Bitcoins spent on drugs through a website specially on Coinbase.

[undeadbitcoiner]

If there is a Small transaction i think there is no Need to Worry. Even with me happens sometime and with few my regular's i asked and a simple answer was We love bitcoin but we are among those 30 Millions who dont have Ligal Status in USA so nowdays i dont even ask, and let me inform you people not having Bank Accounts or SSN can open account with coinbase but Cant veryfy with them(Non Verified Account Can't Purchase or Sell Coins) so we need to help them but When ever there is a large transaction of such offers i suggest you to be safe as i also sell or buy only small amount like 100 - 200 bucks not much so thats fine with me.