Justice Is Served I Guess

[bornil267645]

A Florida plumber was given four years of prison on Tuesday because of his involvement in an underground Bitcoin exchange selling the digital currency to users of the black market website Silk Road.

Serves Him Right !!!

http://gadgets.ndtv.com/internet/news/us-bitcoin-exchanger-who-sold-on-silk-road-gets-4-years-in-prison-651937

[thejaytiesto]

Just a question: Would this have happened if he was using Monero and running the stuff over Maidsafe?

[General_A]

I personally fail to see why this man deserves to be jailed.

[manselr]

I personally fail to see why this man deserves to be jailed.

I guess OP is being ironic about it..

[countryfree]

I personally fail to see why this man deserves to be jailed.

So do I. He wasn't involved in drugs. His only wrongdoing is about money transmission.

[marcotheminer]

SilkRoad was something that sparked bitcoin's discovery and surge into the 'mainstream'. Not only that but it was a revolutionary idea (the market, escrow system, general idea). You should be saying thanks.

[General_A]

SilkRoad was something that sparked bitcoin's discovery and surge into the 'mainstream'. Not only that but it was a revolutionary idea (the market, escrow system, general idea). You should be saying thanks.

Agreed - plus buying drugs online was pretty cool !



P.s. I joke

[RealKruncha]

All the banks should be jailed for supplying money to drug dealers, and various other criminals. HSBC is notorious for it's dealings in black market activity, jail those sods...

I know (at least i think) the thread is in jest, but it shows the double standards these monopoly people have trying to keep their way of life.

K.

[General_A]

All the banks should be jailed for supplying money to drug dealers, and various other criminals. HSBC is notorious for it's dealings in black market activity, jail those sods...

I know (at least i think) the thread is in jest, but it shows the double standards these monopoly people have trying to keep their way of life.

K.

Couldn't actually agree more. Or maybe instead of jailing the banks make the kinda activity that they conduct legal to everybody. Level the playing field is what I say....

[pawel7777]

Robert Faiella, 55, was sentenced by U.S. District Judge Jed Rakoff in Manhattan after pleading guilty to operating an unlicensed money transmitting business.

OK, I'm missing something here.

At that time bitcoin was considered digital asset (or better yet, its legal status wasn't clear). The guy was selling the asset on Shrem's platform (which was registered as legal business), so how is that making him a "money transmitter"? How did he brake the law (apart from not paying taxes on gains)?

How's selling something on ebay (including bitcoin) different than selling on bitinstant?

[RodeoX]

Robert Faiella, 55, was sentenced by U.S. District Judge Jed Rakoff in Manhattan after pleading guilty to operating an unlicensed money transmitting business.

OK, I'm missing something here.

At that time bitcoin was considered digital asset (or better yet, its legal status wasn't clear). The guy was selling the asset on Shrem's platform (which was registered as legal business), so how is that making him a "money transmitter"? How did he brake the law (apart from not paying taxes on gains)?

How's selling something on ebay (including bitcoin) different than selling on bitinstant?

In the U.S. you can not have a business that moves BTC for dollars without a Money Transmitter License. You would be operating a Money Service Business. This is why bitcoin ATMs have not caught on here. The licensees are state by state and can cost as much as 25 million dollars for one state.
If you find this law unfair, then call your elected officials. They are the only people who can change this. 

[seriouscoin]

Stupid fcking media at its best. Spreading BS titles and intentionally mislead general public about the "news"

There is no " involvement in an underground Bitcoin exchange selling the digital currency to users of the black market website Silk Road." charge. The charge is "unlicensed Money transmitter"

Basically he sold and bought BTC on behalf of his client. The key here is "behalf of someone else, ie. brokerage ". He did not buy or sell bitcoins for himself.

Another charge was tax offense related which often called "money laundering". Funny word for not paying the government their shares

All that add up to his sentence.

[kolloh]

Was he actually running this to directly help people purchase from Silk Road or was he simply allowing the buying/selling of bitcoin? Seems like a jump to relate him to Silk Road.

[pawel7777]

Robert Faiella, 55, was sentenced by U.S. District Judge Jed Rakoff in Manhattan after pleading guilty to operating an unlicensed money transmitting business.

OK, I'm missing something here.

At that time bitcoin was considered digital asset (or better yet, its legal status wasn't clear). The guy was selling the asset on Shrem's platform (which was registered as legal business), so how is that making him a "money transmitter"? How did he brake the law (apart from not paying taxes on gains)?

How's selling something on ebay (including bitcoin) different than selling on bitinstant?

In the U.S. you can not have a business that moves BTC for dollars without a Money Transmitter License. You would be operating a Money Service Business. This is why bitcoin ATMs have not caught on here. The licensees are state by state and can cost as much as 25 million dollars for one state.
If you find this law unfair, then call your elected officials. They are the only people who can change this.  

But was it clear at the time SR was operating? If there was no official guidance from authorities on how to treat bitcoin, the guy had every right to sell it just as any other asset (since it wasn't officially recognised as currency or financial instrument).

Actually at what point do you need MT license for selling BTC? Is there any trading threshold? Can you legally sell BTC1 for cash, as one-time sell, not a business activity?

Edit:

Now, this would make sense:

Stupid fcking media at its best. Spreading BS titles and intentionally mislead general public about the "news"

There is no " involvement in an underground Bitcoin exchange selling the digital currency to users of the black market website Silk Road." charge. The charge is "unlicensed Money transmitter"

Basically he sold and bought BTC on behalf of his client. The key here is "behalf of someone else, ie. brokerage ". He did not buy or sell bitcoins for himself.

Another charge was tax offense related which often called "money laundering". Funny word for not paying the government their shares

All that add up to his sentence.

[seriouscoin]

Robert Faiella, 55, was sentenced by U.S. District Judge Jed Rakoff in Manhattan after pleading guilty to operating an unlicensed money transmitting business.

OK, I'm missing something here.

At that time bitcoin was considered digital asset (or better yet, its legal status wasn't clear). The guy was selling the asset on Shrem's platform (which was registered as legal business), so how is that making him a "money transmitter"? How did he brake the law (apart from not paying taxes on gains)?

How's selling something on ebay (including bitcoin) different than selling on bitinstant?

In the U.S. you can not have a business that moves BTC for dollars without a Money Transmitter License. You would be operating a Money Service Business. This is why bitcoin ATMs have not caught on here. The licensees are state by state and can cost as much as 25 million dollars for one state.
If you find this law unfair, then call your elected officials. They are the only people who can change this. 

But was it clear at the time SR was operating? If there was no official guidance from authorities on how to treat bitcoin, the guy had every right to sell it just as any other asset (since it wasn't officially recognised as currency or financial instrument).

Actually at what point do you need MT license for selling BTC? Is there any trading threshold? Can you legally sell BTC1 for cash, as one-time sell, not a business activity?

Read my post above....

[pozmu]

Just a question: Would this have happened if he was using Monero and running the stuff over Maidsafe?

Does maidsafe allow you to receive anonymous fiat payments?

[RealKruncha]

All the banks should be jailed for supplying money to drug dealers, and various other criminals. HSBC is notorious for it's dealings in black market activity, jail those sods...

I know (at least i think) the thread is in jest, but it shows the double standards these monopoly people have trying to keep their way of life.

K.

Couldn't actually agree more. Or maybe instead of jailing the banks make the kinda activity that they conduct legal to everybody. Level the playing field is what I say....

That would be a beauty to see, Banks working for the people - maybe one day

K.

[BitCoinCool]

SilkRoad was something that sparked bitcoin's discovery and surge into the 'mainstream'. Not only that but it was a revolutionary idea (the market, escrow system, general idea). You should be saying thanks.

couldnt disagree more. I was watching bitcoin well before the bust and media hype over SR1.
My initial reaction to the mainstream media attention was "YIKES!, Damn it! Why couldnt it be a precious
metals scam instead? The whole BMdrugs, weapons, association is going to draw from the wrong
societal sector"
Perhaps it brought bitcoin to the attention of a new group or faction- again the western english language
media loves to focus on the ugliest, the worst news available.
I wish the same attention wouldve been given the first time bitcoin broke through the $1,000. USD mark
or equivalent in EU, AUS, etc.

i will agree that the market concept has its merits. Too bad.

[fritz]

So he goes to jail because he made a transaction that did not benefit the state or what?

[RodeoX]

But was it clear at the time SR was operating? If there was no official guidance from authorities on how to treat bitcoin, the guy had every right to sell it just as any other asset (since it wasn't officially recognised as currency or financial instrument).

Actually at what point do you need MT license for selling BTC? Is there any trading threshold? Can you legally sell BTC1 for cash, as one-time sell, not a business activity?

Good questions. Who wants to risk jail and poverty to be the test case? lol.