Topic: Illegal bitcoin exchange Coin.mx busted in NYC - page 3. (Read 2831 times)
Bad story, but how much was the percentage fee in this exchange, 18$ million on fees seems very high, do other exchanges earn like this?
18 million of fees from a paymenbt processing site not many have heard of sort of sounds fake. Why would criminals use them when they have something like bitcoin in the first place 
e
eWhat use are Bitcoins to criminals if they can't turn them into fiat? There's a limit to what you can buy with Bitcoins. Criminals need payment processors to convert their Bitcoins to fiat, but I admit I had not heard much about Coin.mx until they got busted. I never thought it dealt with such large sums of money to obtain 18 million in fees. I doubt many of the major exchanges earn that much in a year.
Actually, I think Coin.mx was shut down not for helping criminals (that just seems to be something the media says every time something involves Bitcoin; all bitcoiners are criminals apparently 
) but rather they didn't have the licensing to be transmitting such large amounts of money. Of course, some of that money may have come from criminal activity, but they were not charged for being accomplices in helping criminal activity since they would have no way of knowing whether the money they were exchanging was from illegal activity or not.
They were also based in Florida AFAIK.
Here is an article from Coindesk about the arrests and shut down.
) but rather they didn't have the licensing to be transmitting such large amounts of money. Of course, some of that money may have come from criminal activity, but they were not charged for being accomplices in helping criminal activity since they would have no way of knowing whether the money they were exchanging was from illegal activity or not.They were also based in Florida AFAIK.
Here is an article from Coindesk about the arrests and shut down.
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.
I think this is the reason that Bitcoin will need to go mainstream in developing nations before it ever goes mainstream here in the US. Too many regulations will prevent bitcoin from being as successful as it could be. While regulations do help in some cases, it hurts the little guy way more than it helps and makes improvements slow to happen.
They were scammy anyway... If the BTC price was listed on google as $100, it'd be listed on their website as $110. Then the fees too... I only used them because I could buy instantly with my credit card. I was willing to pay their inflated price for the convenience of getting it instantly. I recently discovered a BTC atm in my city, so now I don't have to worry about that retardedness of buying online...
That doesn't always indicate scammy behavior . A lot of other sites have price difference with respect to google. Most of the sites have its own traders so price vary independently. However mostly its close and with 5 dollars. 
18 million out of hundreds of millions doesn't sound like a very good deal if it's criminal money. I'd be wanting more for money laundering.
They were scammy anyway... If the BTC price was listed on google as $100, it'd be listed on their website as $110. Then the fees too... I only used them because I could buy instantly with my credit card. I was willing to pay their inflated price for the convenience of getting it instantly. I recently discovered a BTC atm in my city, so now I don't have to worry about that retardedness of buying online...
18 million of fees from a paymenbt processing site not many have heard of sort of sounds fake. Why would criminals use them when they have something like bitcoin in the first place e
e 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.
My post was ironic, but I was actually thought they were based in NYC and were operating illegally
Even if you're not based in NYC, to operate there you have to have a BitLicense... Am I wrong?And thanks for the insight on the money one has to spend to maintain this... Didn't know it was this much. I guess that's where there is only a handful of nice exchanges and only a few having a BitLicense.
The question now is.. Did they have a BitLicense?
Gemini also bypassed the BitLicense process with Gemini Trust Company, LLC regulated as a fiduciary.
.... I can bet you a dollar, Coin.mx did neither. You cannot get away with this kind of thing, there are just to many other competitors out there paying these license fees, who will expose you. They will squash you like a bug. 
https://www.cryptocoinsnews.com/gemini-bitcoin-exchange-launches-needs-no-bitlicense-fincen/
I guess there's ways to make everything happen...
And the market is fierce, nobody wants trading fees to be "distributed" across exchanges. Everyone wants the big share of the cake The question now is.. Did they have a BitLicense?
Gemini also bypassed the BitLicense process with Gemini Trust Company, LLC regulated as a fiduciary.
.... I can bet you a dollar, Coin.mx did neither. You cannot get away with this kind of thing, there are just to many other competitors out there paying these license fees, who will expose you. They will squash you like a bug.
https://www.cryptocoinsnews.com/gemini-bitcoin-exchange-launches-needs-no-bitlicense-fincen/
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.
The question now is.. Did they have a BitLicense?
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."
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