Category Archives: The Law

Deep Web Marketplace Go-Betweener Faces 20 Years Jail

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Having previously plead not guilty to charges related to the arbitrage of drugs purchased via the deep web and sold to IRL customers, 23 year old Joseph Patrick Gelli of Lexington, South Carolina last week plead guilty to a charge of conspiracy to commit money laundering.

Count 12, to which Gelli plead guilty, states that between June 2013 through to July 2014 Gelli purchased bitcoin from Coinbase in order to facilitate the purchase of drugs via an unnamed deep web marketplace so that it could later be onsold for a profit. Continue reading →

BitGo Files MultiSig Patent Application Joining Other Bitcoin Patent Parasites

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An application has been filed (local mirror) with the United States Patent and Trademark office by Bitgo Inc. of San Francisco which if accepted would assign patent rights over the process behind Bitcoin multiple signature addresses to BitGo. Titled "Virtual Currency Address Security" the application lists Michael A. Belshe and Joseph William Lee as inventors of the technology. A proof of concept implementation of multi signature addresses was incorporated into the BitcoinJS library in November of 2013. Continue reading →

Warrick County Prosecutor's Office Cover Up Ransomware Infection

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Prosecutor for Warrick County Michael J. Perry last week released a public statement claiming that shortly after taking office, he became aware of the fact that the ransomware known as cryptolocker had infected computers belonging to the Prosecutor's Office but that the security breach had been covered up by a Ms JoAnn Krantz, the elected Prosecutor at the time of the infection. Ms Krantz is also alleged to have directed employees of the Warrick County Prosecutor's Office not to discuss the ransom demands paid in bitcoin with anyone, telling her staff by email that: Continue reading →

More Trouble For Bryan Micon

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Bluff Magazine reports (archive) that Bryan Micon of the defunct poker website Seals with Clubs was charged Monday with operating an unlicensed interactive gaming system for his part in the operation of SwC. The charge comes two months after operational security concerns forced the original SwC poker site offline citing operation security concerns by way of the Nevada Gaming Commission and their thugs who took a sledge hammer to Micon's front door. Continue reading →

Prosecution Shenanigans Continue as Ulbricht Sentencing Approaches

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As the scheduled May 15th sentencing for Ross Ulbricht approaches Preet Bharara's office is once again engaging in brinkmanship and shenanigans aimed at subverting actual applications of justice. At the sentencing hearing the prosecution plans to present new evidence, which apparently wasn't good enough for the trial, that supposedly links six overdose deaths to drugs allegedly purchased on the Silk Road. Ulbricht's attorney Josh Dratel has requested the sentencing be delayed another month to prepare a response to the government's latest assertion. Continue reading →

MtGox Trustee has 200k Bitcoins, Creditors to Line Up as Bankruptcy Progresses

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As of the third creditors meeting on April 22, 2015, the approximately 100,000 creditors from 130 countries who were swindled by Robert Marie Mark Karpeles and his Bitcoin-fiat exchange MtGox Co., Ltd. – despite the numerous and several warnings and warning signs,1 – can now file claims through bankruptcy trustee Nobuaki Kobayash of law firm Nagashima Ohno & Tsudematsu. Continue reading →

  1. Not the least of which was the consistent $10+ spread between Mt Gox and Bitstamp that persisted throughout 2013, with the premium going to Gox of course, indicating that the Japanese firm was delaying withdrawals, most probably on account of a fractional reserve deposit scheme ↩

Tennessee House Votes To Allow Bitcoin Campaign Contributions

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The Chattanooga Times Free Press reports that the legislators of the Tennessee State House have voted 61 to 28 in favor of allowing Bitcoin to be accepted as a campaign "gift" in state elections. The bill passed the Tennessee Senate last month and awaits the Governor's signature which could render it law, though given that application of the Gubernatorial veto is rare in Tennessee as it takes the same simple majority from each house of the General assembly which initially passed the bill to override the veto. Continue reading →

New York Update: Former NYSE CEO to TeraExchange Former FDIC Chair to itBit

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As hard as the State of New York seems to be working to separate itself from Bitcoin in the manner the United Kingdom has, a number of relics from the fiat world are trying to latch on to a simulacrum of Bitcoin shaped in the fiat world's image.

  • TeraExchange, represented at the CFTF session on digital currencies has taken former New York Stock Exchange CEO Duncan Niederauer as an advisory director.
  • Sheila Blair, former chair of the Federal Deposit Insurance Corporation has joined New York based itBit exchange on their board. A formal announcement on the subject is expected in the next several days.

Readers are reminded that New York and Manhattan in particular overtly present a hostile legal and regulatory environment unsuitable for actual Bitcoin businesses.