Topic: Illegal bitcoin exchange Coin.mx busted in NYC (Read 2826 times)
the next ones are Kraken, Coinsetter, US exchangers without financial license.
http://finance.yahoo.com/news/three-indicted-u-over-major-144238269.html
"Prosecutors said Shalon and Orenstein also ran payment processors IDPay and Todur, through which they collected $18 million of fees to process hundreds of millions of dollars of transactions for criminals.
Shalon was also accused of running the illegal bitcoin exchange Coin.mx with Murgio, and concealing at least $100 million in Swiss and other accounts."
"Prosecutors said Shalon and Orenstein also ran payment processors IDPay and Todur, through which they collected $18 million of fees to process hundreds of millions of dollars of transactions for criminals.
Shalon was also accused of running the illegal bitcoin exchange Coin.mx with Murgio, and concealing at least $100 million in Swiss and other accounts."
100 million $ :O
but it's a famous exchange?
never heard of it!
While I have no idea about the money laundering or hacking allegations, and therefore will not speak of it, I can say that I used Coin.mx dozens of times in the past to buy BTC instantly with my credit/debit card. Nearly every transaction was flawless; could deposit, purchase, and withdraw funds instantly once verified. The few times that there were slight hiccups, due to site maintenance or something similar, their Support team was amazing and very helpful. They also had a great referral system where you and the person you referred got $5-$15 of Bitcoin for free, which they honored every time. Their exchange was one of the only BTC exchanges I would actually recommend to people, because they were honest and easy to use.
I just wanted to speak up on their behalf, with other people commenting calling them scammers. In my personal experience buying Bitcoin through them I can say that they were very legitimate. I have no idea about the claims of illegal activity, but I am sad to see them caught up in that if true. Also, their fees for buying BTC with credit/debit were pretty high, but with many people scamming them with chargebacks after buying BTC, the fees had to be higher to account for that.
I just wanted to speak up on their behalf, with other people commenting calling them scammers. In my personal experience buying Bitcoin through them I can say that they were very legitimate. I have no idea about the claims of illegal activity, but I am sad to see them caught up in that if true. Also, their fees for buying BTC with credit/debit were pretty high, but with many people scamming them with chargebacks after buying BTC, the fees had to be higher to account for that.
First thing is that people like this make me sick, if they were truly laundering money for criminal activity, but it sickens me just as much to hear about all these laws requiring licensing and such when it comes to accepting Bitcoin. So does this mean that everyone who accepts Bitcoin for payment needs to have a license? How far will ti go? People need to start stand up and fighting this before the governments shuts it down before we can push it forward.
The question now is.. Did they have a BitLicense? 
DO you really need a bitlicense to start a bitcoin exchange ?
I was never aware of that ? How do we know a specific website or exchange is a approved of that license ?Does bitcoin organisation issues this licenses? 
Thought about the same as others when I read it. 18$ million in fees? that means a pretty high volume for a exchange I have never heard about till now. If they are helping criminal activity, it is good that they are caught.
Anyone used that exchange?
Anyone used that exchange?
Many illegal Bitcoin activities are easily torn apart and failing many times. We'll be fine.
yeah like the dude that stole that great amount of bitcoin on bitstamp, still untraced, and not caught
some of them know how to hide themselves very well, it will be practically impossible to trace
They didn't catch the dude that stole money from Bitfinex either, or the dude that stole money from Bter, or the dude that exit scammed the evolution market by stealing everyone's money. Sometimes they catch a thief like the Sheep marketplace owner who was arrested after exit scamming by stealing everyone's money, but most of the thieves get away with it.
Many illegal Bitcoin activities are easily torn apart and failing many times. We'll be fine.
Bitcoin is anonymous so it has become good way for scammers and criminal to move funds and fbi are also getting irritated to trace the transaction. However on end those people get caught not due to trace of transaction but due to some silly human mistakes like silkroad owner have done unknowingly. 
Many illegal Bitcoin activities are easily torn apart and failing many times. We'll be fine.
It's easy to say, but not easy when it comes to catch those bastards who commit such crimes stealing "monies" of people...
It's just in the computer, government officials tried to trace Satoshi but did they find him really???
(NOT TRYING TO SAY THAT SATOSHI'S A CRIMINAL)...
Many illegal Bitcoin activities are easily torn apart and failing many times. We'll be fine.
yeah like the dude that stole that great amount of bitcoin on bitstamp, still untraced, and not caught
some of them know how to hide themselves very well, it will be practically impossible to trace
Many illegal Bitcoin activities are easily torn apart and failing many times. We'll be fine.
but good luck integrating it with a significant portion of society or a government when there are still people running off with millions and never identified..
I can go make a exchange or tumbler right now and run off with queued or stored bitcoin in months when it builds and nobody will ever even know my name.. I see dozens of such every few months..
Bitcoin is too grab&run to work as a currency right now..
Many illegal Bitcoin activities are easily torn apart and failing many times. We'll be fine.
http://finance.yahoo.com/news/three-indicted-u-over-major-144238269.html
"Prosecutors said Shalon and Orenstein also ran payment processors IDPay and Todur, through which they collected $18 million of fees to process hundreds of millions of dollars of transactions for criminals.
Shalon was also accused of running the illegal bitcoin exchange Coin.mx with Murgio, and concealing at least $100 million in Swiss and other accounts."
"Prosecutors said Shalon and Orenstein also ran payment processors IDPay and Todur, through which they collected $18 million of fees to process hundreds of millions of dollars of transactions for criminals.
Shalon was also accused of running the illegal bitcoin exchange Coin.mx with Murgio, and concealing at least $100 million in Swiss and other accounts."
this only gives a bad name to digital currency...
And pretty much any policy or design you care to mention will be assumed the mmaaaaaaannn trying to bring it down. Want a exchange to have verified owner identities with it? You're the mmaaaaaaaannn trying to bring down freedom.. Stop being a fascist..
This will be the reality and the rep till the average investor and user see bitcoin as a currency and not something valuable with nobody watching..
The question now is.. Did they have a BitLicense?
Of course not because they are not based in NY.
Florida does require a Money Transmitter license for any Bitcoin exchange. A such license is very expensive(over 500K) and I don't think it's worth it based on the BTC tradings that a company can get these days.
Don't be fooled by the bots you see in actions on any exchanger platform.I am talking about real transactions. It's hard to maintain a licensed company. You need staff (employees) and the salaries are not low in USA.
Example: you need a compliance officer.
A salary for a such position is around of 3000-4000 usd/month without taxes which are not small at all.
You need a collaboration with lawyer. This should be around of 1000-3000 per month(depends on lawyer). you need yearly audit. the cost is around of 10,000 USD or more(depends on how many transactions you have), advertising, common bills (electricity, phones, internet, rent), taxes.
For a small company, a such license is useless.The costs per month can easily reach at 20,000 usd or more. So, first you need to make 20,000 usd and then to think about a net profit for "yourself"(owner).
Very hard to make these money.
Do not look at Coinbase and others like them. They were/are financed by shareholders with millions of USD; otherwise they would be bankrupted.
A compliance officer only making $36k-$48k a year? Maybe if he's a teenager. lol My companies controller made $120k annually and the compliance officer was in the 90s. Both are VP level positions.
Yes, but it is not required to hire someone with high experience if you own a small company. We are not talking about Chase bank:).
He/she can learn along the way...but you are required by law to hire someone on this position. That's why I said around of 45K/year.
The lack of a professional trained compliance officer leads to the BitInstant scenario.
Agree, but once the company grows you can hire a skilled compliance officer. Imagine that a small company cannot afford to pay someone with 10K per month +taxes.
Also, that company has many other expenses as well. Again, we are talking about a small company and not about something like Coinbase who had a lot of connections in the millionaire's world from California.
What I am saying is that a Bitcoin exchange (small company with a low budget; lower than 30,000 USD per month) has no chance to success in USA because it cannot cover the functional costs.
http://finance.yahoo.com/news/three-indicted-u-over-major-144238269.html
"Prosecutors said Shalon and Orenstein also ran payment processors IDPay and Todur, through which they collected $18 million of fees to process hundreds of millions of dollars of transactions for criminals.
Shalon was also accused of running the illegal bitcoin exchange Coin.mx with Murgio, and concealing at least $100 million in Swiss and other accounts."
"Prosecutors said Shalon and Orenstein also ran payment processors IDPay and Todur, through which they collected $18 million of fees to process hundreds of millions of dollars of transactions for criminals.
Shalon was also accused of running the illegal bitcoin exchange Coin.mx with Murgio, and concealing at least $100 million in Swiss and other accounts."
this only gives a bad name to digital currency...
If it was all money laundry practices..?? .
and whether the news is true it is..??
or just to drop a bad image towards BTC ..??
The question now is.. Did they have a BitLicense?
Of course not because they are not based in NY.
Florida does require a Money Transmitter license for any Bitcoin exchange. A such license is very expensive(over 500K) and I don't think it's worth it based on the BTC tradings that a company can get these days.
Don't be fooled by the bots you see in actions on any exchanger platform.I am talking about real transactions. It's hard to maintain a licensed company. You need staff (employees) and the salaries are not low in USA.
Example: you need a compliance officer.
A salary for a such position is around of 3000-4000 usd/month without taxes which are not small at all.
You need a collaboration with lawyer. This should be around of 1000-3000 per month(depends on lawyer). you need yearly audit. the cost is around of 10,000 USD or more(depends on how many transactions you have), advertising, common bills (electricity, phones, internet, rent), taxes.
For a small company, a such license is useless.The costs per month can easily reach at 20,000 usd or more. So, first you need to make 20,000 usd and then to think about a net profit for "yourself"(owner).
Very hard to make these money.
Do not look at Coinbase and others like them. They were/are financed by shareholders with millions of USD; otherwise they would be bankrupted.
A compliance officer only making $36k-$48k a year? Maybe if he's a teenager. lol My companies controller made $120k annually and the compliance officer was in the 90s. Both are VP level positions.
Yes, but it is not required to hire someone with high experience if you own a small company. We are not talking about Chase bank:).
He/she can learn along the way...but you are required by law to hire someone on this position. That's why I said around of 45K/year.
The lack of a professional trained compliance officer leads to the BitInstant scenario.
The question now is.. Did they have a BitLicense?
Of course not because they are not based in NY.
Florida does require a Money Transmitter license for any Bitcoin exchange. A such license is very expensive(over 500K) and I don't think it's worth it based on the BTC tradings that a company can get these days.
Don't be fooled by the bots you see in actions on any exchanger platform.I am talking about real transactions. It's hard to maintain a licensed company. You need staff (employees) and the salaries are not low in USA.
Example: you need a compliance officer.
A salary for a such position is around of 3000-4000 usd/month without taxes which are not small at all.
You need a collaboration with lawyer. This should be around of 1000-3000 per month(depends on lawyer). you need yearly audit. the cost is around of 10,000 USD or more(depends on how many transactions you have), advertising, common bills (electricity, phones, internet, rent), taxes.
For a small company, a such license is useless.The costs per month can easily reach at 20,000 usd or more. So, first you need to make 20,000 usd and then to think about a net profit for "yourself"(owner).
Very hard to make these money.
Do not look at Coinbase and others like them. They were/are financed by shareholders with millions of USD; otherwise they would be bankrupted.
A compliance officer only making $36k-$48k a year? Maybe if he's a teenager. lol My companies controller made $120k annually and the compliance officer was in the 90s. Both are VP level positions.
Yes, but it is not required to hire someone with high experience if you own a small company. We are not talking about Chase bank:).
He/she can learn along the way...but you are required by law to hire someone on this position. That's why I said around of 45K/year.
They were Jewish also judging by their name... Since when can we trust them with our investments?
Isn't this like an old news? Weren't they shut down few months ago already? Or this is just a follow up? I don't get it!
It's ONLY millions of dollars and malicious behavior against the country the money comes from..
Where do you think state and national infrastructure and public property funding comes from? Taxes.
Unless you're going to seriously say people putting capital from commerce in to non-taxed currency doesn't hurt the host nation. That type of logic seems to work for justifying software piracy.
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