I'm a bit perplexed.
I thought bitcoin ownership and conversion is perfectly legal in the U.S. Or is it a state-by-state basis?
Or perhaps he was just doing this unreported and did not pay a single penny of tax on it? If so, then I have no sympathy for him, that's clearly breaking the law.
Ofcourse thats not a whole story. Seriously think hes only buying and selling for his own investment? Thats what he will use for defense. FEDs might have more than that.
That's what I'm thinking. Otherwise, FEDs would be having a field day prosecuting thousands of sellers on localbitcoins over the past 2 years. There's got to be more on this story regarding some deeper illicit activities, and most likely tax evasion on a grand scale (which, does not matter whether you're selling bitcoins or shit on ebay...you'll eventually get hit)
It is perfectly possible that he traded coins connected to illicit activities, without knowing. Normally people don't talk about that, unless they are really really stupid, or sting agents.
And naturally, the Feds will go after the source.
Another possibility is that they are going for the big fish first, trying to scare the "thousands of sellers on localbitcoins" because it is a bit too expensive even for big government, to send 35 highly paid henchmen after each of them.
This is what the German Bafin is doing, they scare individuals to stop them selling Bitcoins (which is possibly the reason why LBC banned Germany). It is not illegal in Germany to trade BTC without a license on a non-business basis, but the legal threats stop most people because they don't want the hassle and expense.
It's not really expensive since there is a 1/4 million dollar fine and all his bit coins and money and property will be seized as well as all computer equipment
I think that's more than enough to cover the price of sending some goons to his house for an hour or two so a nice profit to be made busting anyone else who is doing anything "illegal" in btc
Yeah easily..they would be making really good profit out of it..without a doubt.!
Going to bust Charlie schrem made them another million usd
The silkroad btc seller guy got $950,000 fine as well as some jail iirc
That's an easy 2 million from two quick arrests, I assume burtw will be another easy million $ for them
Let's not even talk about ross ulbright and his hundreds of millions of dollars worth..... Although they probably wasted more money looking for him
You need to take into consideration the money it will cost to prosecute them as well as the cost of a trial. I don't know if it would cost a million dollars or not, however they would need to pay for the DA, the staff in the DA's office, they need to give all the evidence against them to the defendant (this alone probably cost close to a million dollars in Ross's case), pay for court security, for the judge, for the jury (potentially for hotels/meals for the jury if they are sequestered ). The list goes on.
Money is not an issue. They already garnered more than enough from the seized coins from the SilkRoad debacle, and I don't even think they've auctioned off all of them, either. The DA's and judges are already under salary lol what are you even talking about? They are government workers.
There have been much bigger heists/busts than this prosecuted before. If you think anything phazes or scares the U.S. government, then you are sadly mistaken.
I am saying that prosecuting Bitcoin traders is not going to be as profitable as it is being made out to be. The DA and judges are on salary, however if there are enough cases then more will need to be hired, and if there are few enough cases some will be laid off. Just because they are on salary does not mean that they are a permanent fixed expense.
it doesnt take long when the defendants are scared shitless of going to jail for a long time so they agree to forefeit all their assets and just plead guilty without a trial
thats what everyone has done so far ( ulbright is the exception )
Well Ross is almost not going to plead guilty because any deal would likely result in him forfeiting the dozens of millions of dollars worth of bitcoin and a very lengthy jail sentence. He is essentially forced to go all in.
Charlie's case probably cost the government a good amount of money, although probably less then the million they got from him.
The guy behind the burtw.com website appears to be fighting the charges.
It is unknown that the "real" BurtW is doing.
I do agree that a lot of people end up pleaing out and the justice system really is broken in that prosecutors can charge people with charge with very harsh sentences and then offer a plea deal that
seems like a slap on the wrist compared to what they were facing
