Topic: .. - page 3. (Read 6236 times)
One simple fact to keep in mind: As far as I'm aware, it is *not* illegal for law enforcement to lie to you to coerce you or trick you into committing or confessing illegal activity. It is entirely up to you to know the laws in your area and to protect yourself accordingly.
That is not true. You need to follow AML regulations when selling BTC for cash. In a nutshell these include verifying the identity of the person you are dealing with and reporting any transaction over a certain threshold.
Since many/most traders are likely unaware of AML regulations, LE (undercover) will often say they are using the BTC illegally to give the trader a reason to look into the regulations and rules regarding AML.
Since many/most traders are likely unaware of AML regulations, LE (undercover) will often say they are using the BTC illegally to give the trader a reason to look into the regulations and rules regarding AML.
Thats not what the Florida indictment states. AML is a completely different issue.
Charlie Shrem the owner of BitInstant a Bitcoin exchange that was (almost) fully compliant with AML was arrested for knowingly selling Bitcoins to someone who he knew sold them to people who used them for illegal activity and failing to report this:
http://time.com/1892/bitinstant-ceo-charlie-shrem-arrested-for-alleged-money-laundering/
If someone tells you that they are buying your Bitcoins to spend on cocaine, asking to see their ID won't cover you.
Thank you for posting this OP, really eye-opening. I don't even use localbitcoins, and probably won't in the future because of all the risks. This is just an icing on the cake. I wonder if this could get news coverage on some bitcoin news sites, seems like it would make a good piece.
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.
Since many/most traders are likely unaware of AML regulations, LE (undercover) will often say they are using the BTC illegally to give the trader a reason to look into the regulations and rules regarding AML.
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.
That makes these "stings" to try to turn something legal into something illegal even more disgusting.
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.
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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.
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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.
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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?
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...
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...
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.
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