..

[Soros Shorts]

But today was different.

Care to divulge your state?

Anyway, thanks for the heads up. I sell a lot on localbitcoins for cash, but I don't usually advertise anymore. Instead I pick pro buyers with good reps and sell to their bids. I recently tried to advertise and got some weirdo potential buyer who asked too many questions and gave out too much information but fortunately I never followed through. You get better prices if you advertise but you also attract the attention of LEO looking to set up an entrapment arrest.

If you are only a seller want to stay low key, you might also want to change LBC accounts before you reach > 150 BTC worth of transactions on any one account. You don't really need a lot of rep as a seller.

[cryptopaths]

I only assume it will get worse.

[knybe]

nothing about dealing with localbitcoins appeals to me whatsoever... now even more so.

[7Priest7]

I'd prefer to buy locally.
I'd also prefer to wear my anonymous outfit during any bitcoin purchase.

My anonymous outfit is full body covering with a v for vendetta mask.

I hate the idea of sacrificing my privacy for the advantages of buying locally.

I'm too lazy to buy bitcoins anyways.
Buying bitcoins is just a extra step for purchasing legitimate goods and a risky store of value.

[lyth0s]

Thank you for informing us OP. As far as dealing locally in person with cash, I feel that is the only way I would accept cash transactions in exchange for my bitcoins (with the exception of well recognized companies/exchanges) everything else is so reversible, and with western Union you have to give out your full name etc to someone over the web that you're sending bitcoins to, which I actually consider to be even more revealing that just seeing my face (at least I get to see theirs too). I didn't realize that LE would try to setup stings like this and it just adds to the list of forseeable problems with dealing in person.

1. Getting robbed
2. Privacy concerns
3. Possibility of them following you afterwards
4. Law enforcement setups, that should really be illegal themselves

[tooil]

For LBC trader, just limit your trade to less than 1k and don't make chit chat and you should be fine.

[twister]

I wonder if if he was like fbi or cia trying to find out about the illegal activities done using bitcoins.

[Yeezus]

Is it just me or does this story seem a little...farfetched. I dunno, just seems a little fishy, and if it did happen it seems like entrapment. He also didn't seem to state what exactly he needed the coins for.

[oceans]

Wow, that is pretty crazy. That would definitely be someone I would turn down without a second though he really does not seem like the kind of guy to be dealing with at all.

[Mobius]

I wonder if if he was like fbi or cia trying to find out about the illegal activities done using bitcoins.

FBI? No.
CIA? Definitely no.
DEA? Possibly an informant working with them.
Local/State douchebag LE? Most likely.

Yea, FBI and CIA are not going to be doing this kind of sting operation unless you are doing something else illegal that they are after you for (if this was the case I would seriously doubt you would be posting your story in the OP). The only reason the DEA would be doing this kind of sting operation would be if they though you were somehow involved in drugs (same principle as before, but less serious of crime).

[Kipsy89]

Woah man, really? Did that happen to you? Wow, how did you react that fast? I'd never figured that this could be a ploy designed to get me arrested or something! Man, is this even legal for the police or feds to do?

[leopard2]

Don't sell on LBC if it is not legal in your area

If it is legal I would not ask too many questions, unless you are required by law to do KYC. It is a don't ask don't tell situation, if the other party does not tell you anything suspicious, why ask? It is unpolite, annoying and dangerous for you.

Normally legislation is such that you cannot sell XYZ (bitcoins, firearms etc) to a person if you have reason to believe that they are used for illegal purposes, but you certainly don't have to investigate. In fact that is even true for normal items like a crowbar or a car; if you sell something knowing it will be used for a crime, you will be charged for complicity - not a Bitcoin problem  

In that Florida case, they sting buyer actively provided ample information that he was planning illegal use of the bitcoins...and the seller was dumb enough to proceed.

The OP did the right thing and cancel the sale when weed and ecstasy were mentioned...

[herebittybittybitty]

They are creating crime in order to prosecute it.

This is pretty standard these days.

[Kipsy89]

They are creating crime in order to prosecute it.

This is pretty standard these days.

They really do that? Man that's really messed up!!! I know there are strange things going on these days, but that's really mean. I mean.. wow... Really sad and messed up! How can you protect yourself from such a thing?

[dadugan]

They are creating crime in order to prosecute it.

This is pretty standard these days.

This is called entrapment and used to be illegal in the old day.

[herebittybittybitty]

They are creating crime in order to prosecute it.

This is pretty standard these days.

They really do that? Man that's really messed up!!! I know there are strange things going on these days, but that's really mean. I mean.. wow... Really sad and messed up! How can you protect yourself from such a thing?

Obviously, be aware of all the laws and don't agree to do anything illegal. But the fact that it's pretty standard to entice people to break laws (with no actual victims, even) that they otherwise wouldn't should be disturbing to people.

[dserrano5]

I'm wondering how effective would a "Please spare me the details" strategy be. Like "I don't want the details, just BTC for fiat period".

[herebittybittybitty]

Also: Where is it illegal to sell Bitcoin in the US? I had no idea it was...

[ForgottenPassword]

Also: Where is it illegal to sell Bitcoin in the US? I had no idea it was...

It is illegal to knowingly sell bitcoins to someone who has admitted they will be used for criminal activity. That covers all of the US.

[fryarminer]

OP, I just want to thank you for this post. It is something I would have never thought about - even though in the same situation I wouldn't have sold to him - but still, this is an eye opener.

Thanks!