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.
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.
