COIN.MX BITCOIN EXCHANGE OPERATORS ARRESTED

admin Bitcoin Law, Bitcoin News, Bitcoin Regulations, Cyber Crime & Cyber Terrorism, Ransomware, ScamCoins / Fraudsters, US Securities and Exchange Commission (SEC) 0 Comments

Two Florida men are facing some serious felony charges that intersect both Bitcoin and the money transfer business. According to federal authorities, Anthony R. Murgio and Yuri Lebedev never bothered to get a Money Services Business license for Coin.mx, a Bitcoin exchange. The FBI’s statement on the matter calls Coin.mx / Collectables Club a “phony front business” and mentions that the men also utilized a federal credit union that they bought solely for the purpose of washing dirty money. In doing so, they knowingly exchanged cash for people whom they believed may be engaging in criminal activity. MURGIO and his co-conspirators have also knowingly exchanged cash for Bitcoins for victims of “ransomware” attacks, that is, cyberattacks in which criminals (here, distributors of the ransomware known as “Cryptowall”) electronically block access to a victim’s computer system until a sum of “ransom” money, typically in Bitcoins, is paid to them. In doing so, MURGIO, and his co-conspirators knowingly enabled the criminals responsible for those attacks to receive the proceeds of their crimes, yet, in violation of federal anti-money laundering laws, MURGIO never filed any suspicious activity reports regarding any of the transactions. It goes on to allege that they willfully hid their …

Why a New SEC Ruling Could Be ‘Revolutionary’ for Bitcoin Crowdfunding

admin Bitcoin 2.0, Bitcoin Crowdfunding, Crowdfunding, Crypto 2.0, US Securities and Exchange Commission (SEC) 0 Comments

Jared Marx is an attorney at Washington, DC law firm Harris, Wiltshire & Grannis. He advises companies about bitcoin-related regulatory law and represents companies and individuals in civil and criminal proceedings. Here, he discusses why a new securities ruling is a potential boon for ‘crypto 2.0‘ and ‘bitcoin 2.0’ companies operating in the US. On Wednesday, the US Securities and Exchange Commission (SEC) adopted regulations permitting crowdfunding for business startups. The new rules give businesses in the blockchain ecosystem an avenue to get financial backing from the best-educated investors out there: their users. I wrote last week about the challenges that ‘bitcoin 2.0’ companies face from the squishy definition of a “security” under US law. These new rules don’t resolve that ambiguity, but they do create a low-cost safe harbor for businesses that want to avoid uncertainty (and possible criminal exposure) by simply treating their token sales as sales of securities. Here’s how it works: prior to these rules, a company could generally sell securities only to wealthy individuals or after going through expensive registration with the SEC. Now, companies can file a mini-registration statement with the SEC and then sell securities to ordinary people, including over the Internet. As …