List of court cases, complaints, regulatory actions, etc.

[bennett616]

Nice informative topic Keep it up buddy

Andy B

[kokjo]

+1 this is nice keep up the good work!

[dan99]

Latess news, Fed is going after Dwolla and Freezing their Funds ...

[Stephen Gornick]

Seizure Warrant - Funds in Dwolla account of Mutum Sigillum, LLC [Mt. Gox]
May 14, 2013
Location: USA

Abstract: The U.S. Dept. of Homeland Security (DHS) has seized funds in the accounts used by Mt. Gox at Dwolla and Wells Fargo.

 - http://cdn.arstechnica.net/wp-content/uploads/2013/05/Mt-Gox-Dwolla-Warrant-5-14-13.pdf
 - http://bit.ly/12avA2p (pdf viewer on Google Docs)

Further discussion here:

MtGox account in the USA has been seized by the DHS?
- http://bitcointalk.org/index.php?topic=205370.0

Feds reveal the search warrant used to seize Mt. Gox account
 - http://arstechnica.com/tech-policy/2013/05/feds-reveal-the-search-warrant-that-seized-mt-gox-account

[Stephen Gornick]

+1 this is nice keep up the good work!

It's a forum thread, anyone with updates is free (and encouraged) to post!

[Stephen Gornick]

Coinlab, Inc v. Mt. Gox KK et al
May 2, 2013
Location: Washington (U.S. District Court, Western Washington)

Abstract: COMPLAINT against defendant(s) Mt. Gox KK, Tibanne KKC filed by Coinlab, Inc.

 - http://ia601700.us.archive.org/8/items/gov.uscourts.wawd.192566/gov.uscourts.wawd.192566.docket.html

Further discussion here:

[MTGox Sued 5/2/2013] Statement Regarding Formal Complaint
 - http://bitcointalk.org/index.php?topic=193999.0

CoinLab suing MtGox for $75 milliion
 - http://bitcointalk.org/index.php?topic=193922.0

Massive Bitcoin Business Partnership Devolves Into $75 Million Lawsuit
 - http://gawker.com/massive-bitcoin-business-partnership-devolves-into-75-487857656

[Swapster]

FinTRAC does not see the need to regulate several bitcoin exchange models:

http://pokerati.com/2013/05/canada-becomes-bitcoin-friendly/

[Stephen Gornick]

Tangible Cryptography (FastCash4Bitcoins) Receives Notice From State
May 31, 2013
Location: Virginia, USA

Abstract: State of Virginia determines that Tangible Cryptography may be engaging in money transmission under Virginia law.

Tangible Cryptography suspends Bitcoin related transactions
 - http://bitcointalk.org/index.php?topic=224057.0

[bernard75]

Indictment - bitcoin-24.com funds in Commerzbank seized
March 25, 2013
Location: Germany

Abstract: In the investigation of the Berlin public prosecutor against the Internet portal www.bitcoin-24.com on suspicion of fraud in connection with the sale of the Internet currency "Bitcoin" seized 2,5kk €.

 - https://www.bundesanzeiger.de (search for "bitcoin")
 - https://i.imgur.com/d6sirvq.png (image of indictment)

Further discussion here:

Initiative to help Simon Hausdorf to clear things @ bitcoin-24
- https://bitcointalk.org/index.php?topic=175123.0

Bitcoins have been repayed.
The seizure of the account has been lifted by the Public Prosecutor's Office in Berlin on May 31st.
But they cant pay out until the account in Poland is available.

[MSantori]

Tangible Cryptography (FastCash4Bitcoins) Receives Notice From State
May 31, 2013
Location: Virginia, USA

Abstract: State of Virginia determines that Tangible Cryptography may be engaging in money transmission under Virginia law.

Tangible Cryptography suspends Bitcoin related transactions
 - http://bitcointalk.org/index.php?topic=224057.0

That is rough.  The TC guys seemed to have a lawyer, too.

I've reviewed Virginia law for a client and it is very difficult to apply to a bitcoin transaction, or what I understand to be TC's business in general.  Title 6.2, Chapter 19's definition of "money" is very broad, but they do not define "transmission" at all.  Typically, transmission requires at least two customers in a transaction.  TC seems to only have one customer per transaction, so maybe VA's regulatory folks don't really understand what it is they do.

[BitcoinBarrel]

Go BTC! We're routing for you! 

[ScriptGadget]

Directly following last month’s Bitcoin 2013 conference event in San Jose, CA that brought decent revenue into the state, California’s Department of Financial Institutions decided to issue a cease and desist warning to conference organizer Bitcoin Foundation for allegedly engaging in the business of money transmission without a license or proper authorization.

http://www.forbes.com/sites/jonmatonis/2013/06/23/bitcoin-foundation-receives-cease-and-desist-order-from-california/

Scroll the embedded copy of the letter down for some entertaining incompetence. I especially enjoyed the copy/paste third-party webpage complete with Google adds for attorneys and an executive search firm "Don't have a CFO?"

It would be funnier if I wasn't paying these bumblefucks with my tax dollars.

[Stephen Gornick]

Scroll the embedded copy of the letter down for some entertaining incompetence.

Specifically:
 - http://www.scribd.com/doc/149335233/CA-State-Cease-and-Desist-May-30#page=1

I especially enjoyed the copy/paste third-party webpage complete with Google adds for attorneys and an executive search firm "Don't have a CFO?"

It would be funnier if I wasn't paying these bumblefucks with my tax dollars.

The PDF is 11 pages, but that link isn't a direct link from the State, so there's no confirmation yet that's what the State sent.
 

[Stephen Gornick]

Drug Enforcement Agency seizes Bitcoins
June 24, 2013
Location: Charleston, SC, USA

Abstract: Drug Enforcement Agency reports that bitcoins were seized from Eric Daniel Hughes AKA Casey Jones as a result of a violation of the Controlled Substances Act

Users Bitcoins Seized by DEA
 - http://letstalkbitcoin.com/post/53700133097/users-bitcoins-seized-by-dea

DEA Official Notice
 - http://www.forfeiture.gov/pdf/DEA/OfficialNotification.pdf

[Edit: Additional links and info from report by freedomno1:

Users' Bitcoins Seized by DEA
June 23, 2013

By Brian Cohen and Adam B. Levine

June 23,2013

The Drug Enforcement Administration posted an Official Notification that Bitcoin (i.e. property) belonging to Eric Daniel Hughes was seized for forfeiture pursuant to 21 U.S.C. § 881, because the property was used or acquired as a result of a violation of the Controlled Substances Act (21 U.S.C. §§ 801 et seq.)

DISTRICT OF SOUTH CAROLINA

13-DEA-581051, 11.02 Bitcoins, Acct.#1ETDwGUC1QcjYuehFr3u1FD3MvDaUs7SFy,

VL: $814.22 which was seized in Charleston, SC from Eric Daniel Hughes AKA Casey Jones on April 12, 2013

https://bitcointalk.org/index.php?topic=241484.0;topicseen

]

[freedomno1]

No worries was just helping out I'll let you have that one  
No need to duplicate although that might happen if enough articles appear maybe add a master index on page 1

[Stephen Gornick]

No worries was just helping out I'll let you have that one

Heh, well this list benefits from having many collaborators and any supporting data / links as well so your link to the forum thread is valued!
  

No need to duplicate although that might happen if enough articles appear maybe add a master index on page 1

Ya, most of the entries so far are for the U.S., ... and there are a couple hundred nations in this world -- each likely to have an entry or three eventually.  So at some point an index for the most significant ones might be useful.  We're not anywhere near that yet though, I don't think.

[freedomno1]

I agree with you but this is bitcoin and I'm betting legal will grow exponentially soon enough from all the attention  

An article from each country would fill pages
I hope our sources don't get deleted due to age it would be an ever increasing loss of data as age grows on the other hand it would ensure the most current news remains on the thread, I'm just thinking from an archival viewpoint.

I could use multiple sourcing to confirm it but the abstract would only relate to one article the rest would be similar related articles as supplements an example being the first article relates to the difficulty of financial regulations in Canada with regards to major banks across exchanges.

The second example which illustrates the problem of uncertainty would be the libertybit as one of the Canadian exchanges ceased trading.

By extension Libertybit could be its own topic as it is related to the main issue

What I meant by duplication was specifying similar issues affecting all sources so an index on issue type and country would sort that error.
Example: Country Canada Subtopic Regulations then Exchanges Liberty-bit


I added two from Canada to diversify the thread

RBC shuts down Ottawa Bitcoin account
 
The Montreal head office of RBC, in Place Ville Marie. (file photo)
Published on April 29, 2013
The Canadian Press ~ OBJ  

Abstract: The company is one of several Bitcoin dealers struggling to navigate financial regulations that don't account for virtual currencies, and to cope with major banks shutting down their accounts without explanation.

http://www.obj.ca/Local/2013-04-29/article-3229285/RBC-shuts-down-Ottawa-Bitcoin-account/1
http://www.coindesk.com/libertybit-exchange-ceases-trading/

[freedomno1]

Revenue Canada says BitCoins aren't tax exempt
Just in time for tax season, the Canada Revenue Agency says the users of Bitcoins will have to pay tax on transactions in the upstart digital currency.
CBC News Posted: Apr 26, 2013
Location: Canada

Abstract: The CRA told the CBC there are two separate tax rules that apply to the electronic currency, depending on whether they are used as money to buy things or if they were merely bought and sold for speculative purposes.

http://www.cbc.ca/news/business/story/2013/04/26/business-bitcoin-tax.html

[bernard75]

Indictment - bitcoin-24.com funds in Commerzbank seized
March 25, 2013
Location: Germany

Abstract: In the investigation of the Berlin public prosecutor against the Internet portal www.bitcoin-24.com on suspicion of fraud in connection with the sale of the Internet currency "Bitcoin" seized 2,5kk €.

 - https://www.bundesanzeiger.de (search for "bitcoin")
 - https://i.imgur.com/d6sirvq.png (image of indictment)

Further discussion here:

Initiative to help Simon Hausdorf to clear things @ bitcoin-24
- https://bitcointalk.org/index.php?topic=175123.0

Bitcoins have been repayed.
The seizure of the account has been lifted by the Public Prosecutor's Office in Berlin on May 31st.
But they cant pay out until the account in Poland is available.

A little update:
A part of FIAT has been paid out.
Looks like the first closed exchange that pays out completely.

[freedomno1]

(Status: No reply = Source wins)
https://bitcointalk.org/index.php?topic=244524.0

German government relieves capital gains tax on bitcoin positions
Published On June 27, 2013
Location: Germany

Abstract: Bitcoin transactions in Germany have been made exempt from capital gains tax after one year In Germany, assets such as stocks and bonds are subject to a 25% capital gains tax (plus a solidarity surcharge) and a state-dependant church tax. With the new decision, bitcoins having been held for more than a year will not be subject to these charges.

Source: http://www.coindesk.com/german-government-relieves-capital-gains-tax-on-bitcoin-positions/

Quoted from 600watt

sorry for all this german crab here, but this is stunning:

http://www.welt.de/finanzen/geldanlage/article117493178/Bitcoin-Geschaefte-sind-nach-einem-Jahr-steuerfrei.html

german government decided that no taxes have to be paid on gains of bitcoin prize rising (speculation) if the bitcoins are held for a 12 months period. that is much softer as on stockmarket gains! the german government gives bitcoin speculators an edge over traditional stockmarket speculators.


edit:

the article says: speculative stock, bond or certificate gains are taxed 25 %. bitcoin ZERO %.    

Additional Sourcing
http://bitcoinmagazine.com/a-recap-of-mega-corporate-and-government-attention-on-bitcoin-this-past-year/

Bitcoins are a Unit of Value in Germany – Germany’s financial supervisory authority, Bafin, has published a report (translation of relevant text here) delineating their status under German law. The document has the following to state on the subject: “tokens of value meant to be used as a method of payment which are issued by barter-clubs, private exchange-rings or other payment systems in exchange for real economic goods or services or like for example Bitcoins, which are issued in computer networks without any service in return, are therefore exempt from the definition of e-money, even though they fulfill the same economic function as e-money and have the actual potential of privately issued currencies.” The legal concept of e-money in Germany applies only to instruments that ultimately derive from legal tender currencies, and so Bitcoin is effectively classified as a commodity. Incidentally, this is similar to the way more recent government decisions have treated Bitcoin donations – as an “in kind” donation of material but not monetary form, similar to donating food or supplies. Note that classification as a commodity does not exempt Bitcoin transactions from taxation; in most jurisdictions, barter income is taxable too.

https://bitcointalk.org/index.php?topic=66774.msg952802#msg952802;action=printpage


http://www.cryptocoinsnews.com/2013/06/28/german-government-relieves-capital-gains-tax-on-bitcoin-positions/

In online exchanges like bitcoin.de or mtgox.com, 100 bitcoins could be acquired in mid-2012 for about 550 euros. Today, the same amount is worth about 7600 euros. In the event of a sale after more than twelve months, where the gain is about 7000 euros, the flat tax would would come into effect at 1750 euros.
Legally, the purchase and sale of bitcoin is a private sale transaction under Section 23 paragraph 1 sentence 2 of the Income Tax Act, which (according to section 2, paragraph 1, sentence 1, No. 7 Income Tax Act) is classed as income tax. The legal requirement is to collect on these transactions only if the period “between buying and selling is no longer than one year.” Bitcoins are enjoying increasing popularity in the Internet community, but also as a playground for speculators. They allow for the payment of goods and services on the Internet without the need for a traditional bank account or a credit card. More than 2,000 companies and organizations worldwide accept the digital money now.

It is also worth noting that the German capital gains tax does not apply to mining bitcoins. It only applies to stocks, bonds, etc, that have been purchased with the intention of market speculation. Since mining bitcoins is essentially creating value, normal income tax would be applied.

Legal Note
No clarification from bernard75 was given regarding the accuracy as such argument considered moot
That said this reference link will be left
http://de.wikipedia.org/wiki/Privates_Ver%C3%A4u%C3%9Ferungsgesch%C3%A4ft)