Category Archives: North America

CFTC Requests Public Comment LedgerX

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The CFTC, known for stating but never demonstrating its authority over Bitcoin, is asking for public comment on related applications submitted by LedgerX in its attempt to register as a swap execution facility and a derivatives clearing organisation. Comments must be submitted on or before January 30th 2015.

LedgerX, who's investors include Google Ventures, Lightspeed Venture Partners, Crypto Currency Partners and Eric Kagan, hopes to list physically settled digital currency option contracts in 2015.

Public comments are available to read and submit here.

Butterfly Labs Allowed to Reopen

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The Kansas City Business Journal is reporting that the judge in the Federal Trade Commission's case is allowing Butterfly Labs to continue business operations under court supervision. From the court order of Judge Brian Wimes:

"Plaintiff fails to show any continuing violation of the alleged misconduct. Plaintiff argues defendants' past conduct suggests they are likely to return to this business model and related representations in the future. But, as previously discussed, the court disagrees."

Butterfly Labs will be required to submit monthly reports to the court outlining progress in shipping products, processing refunds, and improving corporate governance. Other litigation against Butterfly Labs continues including cases in both Missouri and Kansas.

Judge Rejects Florida Man's Bid to Dismiss Case

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Florida Judge Fleur Lobree dismissed Pascal Reed's motion to drop illegal money transfer charges in an case relating to him selling roughly $25,000 worth of Bitcoin to a Secret Service agent in a sting last winter. Reed's lawyer argued that as merely a token of value applying Florida's money transmission laws to individuals as opposed to corporations would set a horrifying precedent:

"The statute was intended for the exchange of money for money, If you extend it to anything of value, then any customer using a credit card to buy something, anyone holding a yard sale and accepting cash, is a money transferer."

According to Miami-Dade State Attorney Katherine Fernandez Rundle two other people were arrested as a result of this sting targeting "individuals engaged in high volume Bitcoin activity."

CFTC Restate Supposed Authority Over Bitcoin

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If you didn't hear the first time, the CFTC has restated its authority over virtual currencies such as Bitcoin including futures and swap contracts. The claimant of this authority, Chairman of the CFTC Timothy Massad, made such comments when he appeared before the US Senate Committee on Agriculture, Nutrition and Forestry. Massad's claim relies upon the Commodity Exchange Act's broad definition of what a commodity is. Continue reading →

Additional Information On A Normal Man AKA John D Powell

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As John D Powell took a plea deal and plead guilty to two charges of operating an unlicensed money service business, few court documents are available. The documents that are available depict an articulate man who experienced a run of misfortune prior to his involvement with Bitcoin.

In a letter to Judge Shadid, Mr Powell cites the break down of his marriage and stress of surviving an aortic dissection as explanation for his decision to operate an unlicensed Bitcoin exchange. One could be forgiven for mistaking Powell's letter as one penned by a murderer who is remorseful for his crimes and if as claimed by the State, Powell did process USD $3 million in Bitcoin, it's clear it was a beacon of light for him despite yielding to the court in his apology letter. Continue reading →

A Normal Man Sentenced To 48 Months Prison

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A Normal man1 has been sentenced by Chief U.S. District Judge James Shadid to 48 months in federal prison for operating a bitcoin exchange. 55 year old John Powell of Normal, Illinois plead guilty to two counts of operating an unlicensed money service business.

Powell received US $3 million over an 18 month period up until February 2014. Upon completion of the sentence, Powell will serve three years of supervised release.

Source – http://www.pantagraph.com/news/local/crime-and-courts/b-n-man-sentenced-for-illegal-bitcoin-operation/article_30069152-125b-5ef1-8d19-e8f8176678de.html

  1. top kek! ↩

Silbert Syndicate Wins 48,000 BTC at auction

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Barry Silbert has self disclosed on twitter that his bidding syndicate has won 48,000 BTC in the recent United States Marshal's Service auction. Tim Draper had earlier announced winning the other 2000 BTC up for bidding. Silbert's tweet:

Announcement: Pleased to share that the syndicate organized by & our trading division won 48k bitcoin auctioned by US Marshals

9:32 AM – 9 Dec 2014

HashFast Asset Auction Cancelled

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Last Thursday, Bankruptcy Judge Dennis Montali approved a joint statement from HashFast and its creditors in which it is made clear that no-one other than Simon Barber is interested in purchasing the remaining assets. Early last month, HashFast was ordered to auction off its assets but plans for the auction have been scuttled at the last moment as the Bid Procedures Order only received "lowball offers."

In addition to the joint statement released last Thursday, a document dated October 31st was made available. This document shows that a Venezuelan congressman by the name of Guido Ochoa made a bid of $420,000, which was accepted, for all HashFast assets but the ASICs. Continue reading →

Bitcoin St. Petersburg Bowl Preview

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Today the 2014 NCAA College Football bowl match ups were announced and the University of Central Florida Knights (9 wins, 3 losses) will be facing the North Carolina State Wolfpack (7 wins, 5 losses) in the Bitcoin St Petersburg bowl. The St Petersburg bowl which presently carries the Bitcoin name was born in 2008 as the magicJack bowl, before serving as the Beef 'O' Brady's bowl from 2009 to 2013. The game will begin at 8:00 pm Eastern time December 26th at Tropicana field, home of the Tampa Bay Rays baseball team and air on ESPN. Let's take a look at the teams: Continue reading →