SHUM - No One is Safe! Bitcoin User Arrested Over Transaction! Arrested by Homeland Security!

https://crushthestreet.com/articles/digital-currencies/safe-bitcoin-user-arrested-transaction

On February 9th, 2018, Morgan Rockwell was arrested in his own home for a Bitcoin transaction dating back to late 2016.

The reason for the arrest was selling Bitcoin for cash, and although he is currently released under a personal recognizance bond, Morgan is being charged under section 18 USC 1956 - Money Laundering Instrument.

Morgan's court appearance will be on February 22nd, 2018 at the Edgar J. Schwartz building in San Diego.

Due to the charges given, Morgan faces legal fees of over $150,000, with accusations of money laundering. This is not the first time an individual has been targeted for using digital assets and flagged as breaching anti-money laundering requirements.

Are users of cryptocurrency going to be forced to submit transactional data if they used third-party exchanges, such as Coinbase?

If this is a requirement for many users of cryptocurrency who have already exchanged their digital assets for government-issued cash, we may see a wave of arrests as 2018 unfolds in an attempt to clamp down on everyday people and start-ups that are creating wealth that does not require dependency on Big Brother...

According to www.fincen.gov, some form of data may need to be submitted to authorities, but as cryptocurrencies are not restricted by borders and are ultimately nationless, the confusion regarding them intensifies.

"Certain money services businesses (MSBs) have been required to register with FinCEN since 1999, when the MSB regulations first went into effect. An entity acting as an MSB that fails to register as required is subject to civil money penalties and possible criminal prosecution. The registration of the MSB serves as a first step in establishing the compliance framework for applicable FinCEN regulations designed to help mitigate the risks of criminal abuse of MSBs for money laundering and terrorist financing as the MSB seeks to provide financial services to customers for legitimate purposes. There is no cost for registration, which is a simple procedure explained in detail on FinCEN's Web site at https://www.fincen.gov/money-services-business-msb-registration."

Source: https://www.fincen.gov/enforcement-actions-failure-register-money-services-business

The Danger of BitLicence

As cryptocurrencies are taken seriously by financial powers, we've seen the emergence of the BitLicence.

Issued by the New York State Department of Financial Services, the licence is a requirement for cryptocurrency-based businesses that brings similar regulatory rules to those of brokerage firms as a blatant attempt to control the innovative growth of the emerging blockchain sector.

Bitcoin is for the People - Not the Government

Bitcoin was developed to be an open source network, without the need for any third parties to regulate or manipulate operations within. If this new licence spreads to other states or other nations adopt similar laws, it could drive out start-ups from the respective countries and push innovation to locations where the laws are not so harsh.

This is ultimately something every user of cryptocurrency should take heed of, regardless of which country they reside in.

As Bitcoin and the blockchain industry in general continue to grow, authorities will begin to take more action, possibly enforcing the new BitLicence. Please research and consider the legal implications when investing in cryptocurrencies - it is not worth going to court or prison over.

Trusting third-party exchanges may not be the best idea, as they are the first in line for regulatory crackdowns (due to being a crossroads for cryptocurrencies and fiat currencies). If prompted, they can give up your transactional data without your consent.


Comments


[55 Points] HardC0r3:

Use Monero


[43 Points] Chrome_trichome:

Sounds like this guy was running a bitcoin exchange service.

"No One is Safe!" Calm down, chicken little.


[18 Points] OptionalAccountant:

This is pretty fucked up since nobody really knew what was up as far as capital gains back then. Luckily I just bought drugs with all of my capital gains.


[6 Points] _PrinterPam_:

According to that document image, the arresting agency was Immigration and Customs Enforcement. I get the feeling there's a lot more to this case than your shilling attempt, and some blog, would like people to believe.


[3 Points] elfer90:

he was sellin bitcoin/cashin out


[3 Points] Albert-25:

Does anyone fail to realize he owned bitcoin atms? In theory he could be charged for something like a vendor using his ATMS for laundering cash. Government, does, not, care.


[2 Points] jaydee0007:

So they should also be charging coin base with the same offence? Amurcia Fcuk Yeah.


[1 Points] XmrFanMan:

Bitcoin was developed to be an open source network, without the need for any third parties to regulate or manipulate operations within.

Non governmental third parties have regulated/manipulated bitcoin many times.

Without a centralized body of developers/businesses with power and control, bitcoin would have had a devastating fork split in 2013.

https://freedom-to-tinker.com/2015/07/28/analyzing-the-2013-bitcoin-fork-centralized-decision-making-saved-the-day/

I think outside forces have also attacked and thus controlled/manipulated bitcoin, but I don't want to get into that argument, I'm no expert on that drama.


[0 Points] -YOUpeople-:

So Monero not only saves you from blockchain analysis but it also is an effective anti-moneylaundering tool too?? This guy was arrested for a completely different issue than money laundering. When you are cashing out cryptocurrency, there are two major considerations. One is the blockchain of course which Monero is said to address. But a much bigger issue is being in compliance with laws in terms of cashing out. The blockchain was not relevant at all in this case. If he was caught selling Monero, the money laundering charges would be the same. Even if you have completely clean BTC, if you are cashing out you have to be aware of AML. AML does not depend on solely taint or blockchain analysis. Its actually much more simple than that and easy to fall afoul of.

Monero does not cure cancer.


[1 Points] Intergalactic_Reborn:

The government just wants control of it all. No control= Government freaking out!


[1 Points] HerbalPotion:

Wtf....


[-19 Points] None:

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