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

[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.

Update: ANSWER AND COUNTERCLAIM

 - http://numismatics.pwnz.org/wp-content/uploads/2013/09/MtGox-Answer.pdf
 - http://bit.ly/1eowU72 (Browser-friendly PDF viewer)

According to MtGox, 'by the expiration of the Transition Period on March 22, 2013 CoinLab was not FinCEN registered as a money transmitter and was not licensed by any state to be a money transmitter.' Countercl. ¶ 33. Ergo, Coinlab breached the contract, and MtGox was no longer required to perform its obligations.
-
A joint status report is due on September 20 to the federal court hearing the case, and some of the unanswered questions should be resolved.

 - http://numismatics.pwnz.org/coinlab-v-mtgox-answer-complaint

[Stephen Gornick]

I'm hoping for this thread to remain an index, mostly with just a brief summation and then links towards other threads and external sources -- rather than be where discussion for each index entry occurs.   Feel free to reply with a link to a relevant thread where further discussion occurs or to other related content.

[bernard75]

TLDR:
http://www.wired.com/wiredenterprise/2013/09/mt-gox/

[Stephen Gornick]

SEC v. Trendon T. Shavers, et al  CASE NO. 4:13-CV-416
July 23, 2013
Location: Sherman, TX, USA

Another update on this:

Certified letter from U.S. District Court to Trendon T. Shavers - returned to sender / unclaimed.

 - http://archive.org/download/gov.uscourts.txed.146063/gov.uscourts.txed.146063.29.0.pdf
 - http://bit.ly/1aWG7SD (Browser-friendly PDF viewer)

[Stephen Gornick]

Bitcoins confiscated in Operation Ransomware
September 27, 2013
Location: Madrid Spain

Abstract: Technological Investigation Brigade, the national police in Spain, confiscated [Edit: gained the credentials necessary to spend] an undisclosed number of Bitcoins from a pair of foreigners "laundering" 10K EUR a day in a malware/ransomware scam that sold access to remotely controlled computer systems.

Investigators located the different digital wallets that the organization used for electronic money and have seized a total of 55,000 € between different euro notes and virtual currency.

- http://www.policia.es/prensa/20130927_1.html

What is unknown is if this is the same bust reported in February:
 - http://arstechnica.com/tech-policy/2013/02/spanish-police-bust-alleged-ransomware-ring-that-took-in-1-34m-annually

[ijphlrnxewho]

Thanks for the info.

[Stephen Gornick]

United States of America v. ROSS WILLIAM ULBRICHT a/k/a Dread Pirate Roberts a/k/a Silk Road
September 27, 2013
Location: Southern District of New York

Abstract: FBI files complaint against founder and operator of Silk Road market with narcotics trafficking conspiracy, computer hacking conspiracy, and money laundering conspiracy.

Silk Road had 957,079 registered users who did 1.2 million transactions between February of 2011 and July of 2013, the FBI says.

Note, the source of the complaint is from security researcher Brian K Rebs' website, so this URL is tentative:

 - http://krebsonsecurity.com/wp-content/uploads/2013/10/UlbrichtCriminalComplaint.pdf
 - http://www.theverge.com/2013/10/2/4794780/fbi-seizes-underground-drug-market-silk-road-owner-indicted-in-new
 - http://bitcointalk.org/index.php?topic=306338.0 (Primary discussion thread on this is the Press board)

[bernard75]

Fuck me sideways, and i thought they would never catch him.
I wonder how long this site served as a honey pot.
Although this recent statement of DPR sounds genuine:
http://www.reddit.com/r/SilkRoad/comments/1mtcb1/dpr_atlantis_spokesman_on_the_atlantis_shutdown/

[Stephen Gornick]

I don't know at which point to stop posting about new cases where the only part where Bitcoin is relevant is that it was used as the type of currency.  Here is one of those, but it is probably significant enough:

United States of America v. STEVEN LLOYD SADLER and JENNA M. WHITE
October 2, 2013
Location: Seattle, WA, USA

Abstract: Selling through the Silk Road, vendor "Nod" (Sadler and White) were charged with conspiracy to distribute drugs, including over 2 kilos of cocaine, illegally.   

The only reference to Bitcoin was this:

22. As a further measure to protect the anonymity of its users, the Silk Road requires all transaction to be conducted in Bitcoin.  Bitcoin is an electronic, cryptographically based currency that had no association with banks or a government.  Bitcoin is used because it is difficult to track and easy to move online.

 - http://cryptome.org/2013/10/sadler-white-complaint.pdf
 - http://bit.ly/15Tlx3o (browser-friendly PDF viewer)
 - http://krebsonsecurity.com/2013/10/feds-arrest-alleged-top-silk-road-drug-seller

There was a separate bust of Silk Road sellers, this time in the UK, but Bitcoin was not specifically mentioned:

Four UK men arrested over Silk Road links
 - http://www.bbc.co.uk/news/technology-24443216

[JAM69]

Bitcoins confiscated in Operation Ransomware
September 27, 2013
Location: Madrid Spain

Abstract: Technological Investigation Brigade, the national police in Spain, confiscated [Edit: gained the credentials necessary to spend] an undisclosed number of Bitcoins from a pair of foreigners "laundering" 10K EUR a day in a malware/ransomware scam that sold access to remotely controlled computer systems.

Investigators located the different digital wallets that the organization used for electronic money and have seized a total of 55,000 € between different euro notes and virtual currency.

- http://www.policia.es/prensa/20130927_1.html

What is unknown is if this is the same bust reported in February:
 - http://arstechnica.com/tech-policy/2013/02/spanish-police-bust-alleged-ransomware-ring-that-took-in-1-34m-annually

According to a Spanish journalist, the police changed the bitcoins for euros.
https://twitter.com/pabloromero/statuses/386874644747534336

[Stephen Gornick]

Since the description of this thread includes interactions with "regulators", ...

Amendment to Form S-1 REGISTRATION STATEMENT
by WINKLEVOSS BITCOIN TRUST
October 8, 2013
Location: Washington D.C. (Filing with SEC)

Abstract: Preliminary prospectus of the WINKLEVOSS BITCOIN TRUST

 - http://www.sec.gov/Archives/edgar/data/1579346/000119312513393903/d562329ds1a.htm

[Stephen Gornick]

Since the description of this thread includes interactions with "regulators", ...

And another one:

SEC FORM D - Notice of Exempt Offering of Securities
by Bitcoin Investment Trust
October 4, 2013
Location: New York, NY USA

Abstract:  New Notice, Date of First Sale: 2013-09-25, Total Amount Sold: $2,542,818 USD

 - http://www.sec.gov/Archives/edgar/data/1588489/000158848913000001/xslFormDX01/primary_doc.xml

[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.

Update: PLAINTIFF’S ANSWER TO COUNTERCLAIM

 - http://thegenesisblock.com/wp-content/uploads/2013/10/CoinLab-Response-10-04-13.pdf
 - http://thegenesisblock.com/coinlab-files-response-mt-gox-lawsuit/

[freedomno1]

This seems applicable to bitcoin but does not mention it explicitly
" Fitting under Bitcoin-related topics that interact with the courts, police, regulators, etc."
Feel free to correct me Stephen if it is not


Crowdfunding counts as taxable income, Revenue Canada says
Oct 10, 2013
Location: Canada

Abstract: Tax attorneys and several media outlets reported earlier this week that a recent interpretation the CRA issued in response to a query about crowdfunding makes clear that if the money raised is related to professional or business activities, then it qualifies as income.

"In our view, amounts received by a taxpayer from crowdfunding activities would generally be included in income pursuant to subsection 9(1) of the [Income Tax] Act as income from carrying on a business," the CRA said in an Aug. 16 letter that was made public this week.

http://www.cbc.ca/m/touch/business/story/1.1959091

[bernard75]

freedomno you are forgetting that most of the old members are communists in the eyes of investors who jumped on board this year and for them its quite relevant.
Stephen keep up he excellent work, i always enjoy the well researched updates.

[Stephen Gornick]

Bitcoins confiscated and arrests made by Dutch authorities
October 24, 2013
Location: Netherlands

Abstract: Four men from Alkmaar, Haarlem, Woubrugge and Roden were arrested, suspected of involvement in large-scale, digital fraud and (1M EUR) money laundering case [TorRAT malware].

Hackers plunder back accounts
 - http://www.om.nl/actueel/nieuws-persberichten/@161668/hackers-plunderen

Dutch TorRAT Threat Actors Arrested
 - http://blog.trendmicro.com/trendlabs-security-intelligence/dutch-torrat-threat-actors-arrested

Malware gang steals $1.4m and sets up bitcoin exchange to launder it
 - http://www.coindesk.com/malware-gang-steals-1-4m-bitcoin-exchange-launder

[JAM69]

How the Spanish police seizes bitcoins
http://www.elmundo.es/tecnologia/2013/11/01/5270d45363fd3da7618b4576.html

[Stephen Gornick]

Bitcoin: A Primer, paper by the Chicago Fed
Location: Chicago, U.S.
December, 2013

Abstract: This paper by an analyst/economist with the Chicago Federal Reserve is a review of the mechanics of the currency and offers some thoughts on its characteristics.

 - http://www.chicagofed.org/webpages/publications/chicago_fed_letter
 - http://www.chicagofed.org/digital_assets/publications/chicago_fed_letter/2013/cfldecember2013_317.pdf
 - http://bit.ly/1b7G83R (Browser-friendly PDF viewer)

[freedomno1]

Bitcoin is acceptable payment for attorneys, Israel Bar Association rules
Location: Israel
August, 2013

Abstract: Israel’s banking system has restricted commercial transactions of the virtual currency, but Bar Association authorized members to accept it.
Israeli attorneys can accept payment in bitcoin. This ruling was made this month by the a regional ethics committee of the Israel Bar Association, despite the regulatory problems surrounding the independent virtual currency.

http://www.haaretz.com/news/national/.premium-1.539001

[Stephen Gornick]

Preliminary: United States of America V. Matthew Crisafi
Location: New Hampshire
October, 2013 [?]

Abstract: The Department of Justice said that it’s arrested 38-year-old Matthew Crisafi in New Hampshire on charges of selling unlicensed firearms, arms smuggling and money laundering after he allegedly attempted to sell firearms to an undercover officer of the Department of Homeland Security.

 - http://www.forbes.com/sites/andygreenberg/2013/11/07/sting-operation-nabs-alleged-online-arms-dealer-via-silk-road-competitor-site/