Bitcoin History: Heroin Store Joe Job and the Bitcointalk Subpoena

Earlier today Theymos of Bitcointalk revealed that he satisfied a subpoena by prosecutors in the United States related to the yet to be tried Ross Ulbricht case. He offered that he turned over posts related to the account "altoid" alleged to be connected to Ross Ulbricht. He also admitted turning a number of posts, including posts deleted by users from a thread titled "A Heroin Store" which posed and interesting thought experiment: Continue reading

United Kingdom Severely Constrains Porn Production

Today an amendment to the 2003 Communications Decency act went into effect that severely limits the acts that can be portrayed in pornography produced in the United Kingdom. The changes apply restrictions that the United Kingdom has placed on content produced for DVD porn and extends those restrictions to Video on Demand Porn. Pornographer Erika Lust regrets the changes as: Continue reading

Project Longstrike Launches, Meanwhile Australian Citizen Extradited To United States Over Silk Road Charges

Reuters reports that an unnamed Australian law enforcement agency is investigating the use of bitcoin in organised crime. It's unknown whether the LEA conducting the investigation, named Project Longstrike, is one at the state or federal level. Given the project's scope for local and international crime, it's likely to be the later of the two. Continue reading

UN Report Criticizes United States on Human Rights

A recent report by the United Nations High Commision for Human Rights Committee on Torture excoriated the United States for its human rights record at home and abroad in it first review of the United States since 2006. The United States record was reviewed along with those of several other parties to the 1987 U.N Convention Against Torture which was ratified by the United States in 1994. A number of issues raised in the committee's conclusions include: Continue reading

HSBC Cuts Ties with GABI

HSBC has reportedly cut ties with the "regulated" Global Advisors Bitcoin Investment Fund (GABI) over concerns related to "money laundering" risks. Notably in 2012 HSBC settled with the United States for $1.92 billion related to assistance it allegedly provided drug cartels in laundering money in Mexico and Columbia, likely making the money laundering issue a very sore subject for the bank.

US Supreme Court to Hear Oral Arguments in Speech Case

The supreme court tomorrow will hear oral arguments in the case of Elonis v. United States. The legal question to be argued is:

(1) Whether, consistent with the First Amendment and Virginia v. Black, conviction of threatening another person under 18 U.S.C. § 875(c) requires proof of the defendant's subjective intent to threaten, as required by the Ninth Circuit and the supreme courts of Massachusetts, Rhode Island, and Vermont; or whether it is enough to show that a “reasonable person” would regard the statement as threatening, as held by other federal courts of appeals and state courts of last resort; and (2) whether, as a matter of statutory interpretation, conviction of threatening another person under 18 U.S.C. § 875(c) requires proof of the defendant's subjective intent to threaten.

Elonis was convicted for the high crime of posting rap lyrics he had authored to his Facebook page and as a result was sentenced to 44 months in prison to be followed by three years of supervised release.

Ken Hess: Bitcoin Illegal, Tom Coburn: Maybe for Congress?

In a piece appearing on ZDnet today Ken Hess wrote a about his letter campaign to inform United States Senators of "Bitcoin's illegality" and of how Tom Coburn's office responded. Mr. Hess's case for Bitcoin illegality consist of his reading of Article 1, Section 8, Clause 5 of the United States constitution which enumerates as a power of Congress: Continue reading

MtGox Trustee Moves to Repay Creditors, Work With Kraken

According to the New York Times, the liquidator in the MtGox bankruptcy case is moving in the direction of repaying creditors and will partner with the Fiat/Bitcoin exchange Kraken to do so. Among assistance Kraken might offer to the trustee is an evaluation of Mt Gox's assets and help investigating the collapse of MtGox. Any decision to repay the customers with Bitcoin though would happen at the discretion of the Trustee. Jesse Powell of Kraken offered a few informative quotes: Continue reading