• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
Buy Neo Pepe
No Result
View All Result
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Amazon and Walmart Eye Launch of Their Own Crypto, Details
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Amazon and Walmart Eye Launch of Their Own Crypto, Details
Regulation Making it Harder to Hide Wealth from the Government

Convictions, Jail Time On The Rise In The U.S. For Selling Bitcoin

Matthew Tompkins
by Matthew Tompkins
7 years ago
·
Posted in Bitcoin, Bitcoin Regulation, Legislation, News, News teaser
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

incidents of People are increasingly being arrested in the U.S. for selling Bitcoin via online sites such as localbitcoins.com.


With the recent surge in the public’s interest in Bitcoin and cryptocurrency as a whole, the United States government is sitting up and taking notice of something that many officials once dismissed as a passing fad. As a result, a disturbing trend has begun to emerge. Law enforcement agencies are arresting and charging people with a crime for selling Bitcoin in the U.S.

Bitcoin has yet to be given currency status in the U.S. and since lawmakers are still struggling to wrap their minds around the new technology, laws governing the buying and selling of Bitcoin are nebulous at best. While that may come as no surprise to many, it is worth familiarizing yourself with the laws that do exist should you wish to sell Bitcoin.

Selling Bitcoin as a Business

bitcoin money

While it is not illegal to buy and sell Bitcoin per se, four people have been arrested for exchanging the cryptocurrency for fiat. The charge? Operating a money transmission business without a license.

In May of this year, Jason Klein of Nixa, Missouri waived his right to a grand jury trial and plead guilty to the charge of “conducting an illegal money transmission business.” He was arrested after five separate instances of in-person transactions of cash for bitcoin with undercover federal agents. Transaction amounts ranged from $1,000 to $15,000.

Also in May, Detroit, Michigan resident Sal Mansy plead guilty to the charge of “operating an unlicensed money service business.” Between 2013 and 2015, it is estimated that Mansy bought and sold close to $2.5 million worth of bitcoin, the proceeds of which he funneled through a legitimate business that he owned.

Although the wording of the exact charge varies to some degree, the operative word in both is ‘business’. That is, the main marker of criminality seems to be whether or not an individual is selling Bitcoin as a business. The litmus test for whether or not it constitutes a business seems to be a combination of the frequency and volume of the transactions as well as to whom the individual is selling.

In a telephone interview with Motherboard, Marco Santori, a Palo Alto-based lawyer who specializes in Bitcoin, explained:

‘As a business’ is the qualifier that triggers the money transmission laws. […] If you come to me and ask to buy $100 worth of bitcoin and I sell that to you, in no state is that sole activity considered to be money transmission. It must occur in a sufficient frequency and volume and you have to accept all comers. It’s a fact-based test.

Selling Bitcoin as a business requires a license and consciously selling Bitcoin to someone whom you know to be a money launderer is a path to conviction. Two Arizona men found this out the hard way when undercover federal agents contacted them through localbitcoins.com and the officers told the men the funds they were using to buy with were illegally obtained. This was enough to arrest the pair, and not only charge them with unlicensed money transference but on money laundering charges as well.

Overturned Cases

Overturned Cases

Although convictions for selling Bitcoin illegally appear to be on the rise, the law is far from clear cut. Judges in several states disagree with the assessment that selling Bitcoin is illegal.

Last year in Florida, Miami-Dade Circuit Judge Teresa Mary Pooler ruled in the case of the State of Florida v. Michell Espinoza that since Bitcoin was not backed by any government or bank it could not be considered ‘money’. Espinoza had been arrested and charged with illegally transmitting and laundering $1,500 worth of Bitcoin, which he sold to undercover detectives who had informed him that they planned to use the money to buy stolen credit cards.

According to Judge Pooler’s ruling:

The court is not an expert in economics; however, it is very clear, even to someone with limited knowledge in the area, the Bitcoin has a long way to go before it the equivalent of money.

She went on to further explain her decision:

This court is unwilling to punish a man for selling his property to another, when his actions fall under a statute that is so vaguely written that even legal professionals have difficulty finding a singular meaning.

Espinoza’s case was thrown out in a ruling that many experts in the Bitcoin community are hoping will “encourage the use of the virtual currency, and offer a roadmap to governments across the world that have struggled to understand and regulate it.”

Do you sell Bitcoin? How will recent rulings affect lawmakers’ decisions in future Bitcoin-related cases? Let us know in the comments below.


Images courtesy of Shutterstock, Wikimedia Commons

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Matthew Tompkins

Matthew Tompkins

Follow

Full Profile

Related Posts

GameStop

GameStop Preps War Chest For Potential $1.75 Billion Bitcoin Play

1 day ago
Bitcoin

$130K Bitcoin Will Trigger A HODL Frenzy, CEO Says

1 day ago
Bitcoin

Bitcoin’s High Euphoria Spurs UK Company’s $5 Million Buy

2 days ago
Bitcoin

Spam Wars: Bitcoin Core Devs At Center Of Heated Debate

4 days ago
Netflix

1 Bitcoin Up For Grabs On Netflix Reality Show ‘House Of Streams’

5 days ago
Bitcoin price

Bitcoin Price Approaches $106,000 As Resurgence Continues — But Watch Out For This Level

5 days ago
Please login to join discussion

Premium Sponsors

Press Releases

  • ETHRANSACTION Cloud Mining: A Deep Dive into the Steady...

    1 hour ago
  • Bitcoin plunge caused 250k people to be liquidated. Area...

    1 hour ago
  • ETH rises better than BTC, cloud mining platform Ripplecoin...

    1 hour ago
  • No equipment investment required! XRP Mining cloud mining...

    1 hour ago
  • Blockchaincloudmining: XRP leads global payments, cloud...

    2 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Buy Neo Pepe

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.