• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • 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
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • 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
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • 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
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • 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
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
Nexo

Michigan Man Busted for Unlicensed Bitcoin Exchange – Faces Jail Time

Jeff Francis by Jeff Francis
5 years ago
in News, Bitcoin Exchange, Bitcoin Regulation, Legislation, News teaser
0

A man in Michigan is facing federal charges for operating an unlicensed Bitcoin exchange after selling over $55,000 USD of Bitcoin to undercover agents.


There’s a song that goes, “I fought the law, and the law won.” The reality is that the law usually wins as the state can devote an incredible amount of resources upon an individual or organization when it wishes to. Lately, the US government has been looking hard at unlicensed Bitcoin exchanges, which runs afoul of federal law. The latest catch for law enforcement is 52-year-old Bradley Stetkiw of Michigan as he was recently named in a federal indictment for illegally exchanging Bitcoin in Bloomfield Township.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!
Buying some Bitcoin while chowing down on some donuts.

Selling Bitcoin Out of a Restaurant

While there’s no information on how law enforcement got wise to Bradley Stetkiw operating an unlicensed Bitcoin exchange, the details of his operation was that he would meet buyers in person at a Tim Hortons restaurant and sell bitcoins at a premium. He actively used the LocalBitcoins website, where he went by the moniker of “SaltandPepper.” (I guess he was big into 80s rap groups.)

Over the course of six meetings, Stetkiw sold over $55,000 USD of Bitcoin to undercover agents. If that wasn’t bad enough, he further screwed the pooch by brokering a deal with an out-of-state seller. For those unfamiliar with US laws, being involved in illegal transactions across state lines is considered very serious, and the federal government loves to throw the book at such people.

Authorities Cracking Down on Unlicensed Exchanges

The authorities are going after individuals who are operating unlicensed cryptocurrency exchanges. In the case of Bradley Stetkiw, he was nabbed for not complying with the conditions laid out in Title 31, United States Code, Section 5330. Stetkiw can take some cold comfort in that he’s not alone. Last year, a Louisiana chiropractor and his son pleaded guilty to operating an unlicensed money servicing business in which they sold over $3.5 million USD in Bitcoin for fiat currency. Recently, a Florida programmer got sentenced to 16 months in jail for his part in a Bitcoin laundering scheme.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

To be honest, there is some gray area in the law concerning this matter, but you’ll need really good (and expensive) lawyers to find a way out. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) did issue a document in 2013 that stated that users of cryptocurrencies were not money servicing businesses, but those who engage in exchanging those currencies were. The agency said:

A user is a person that obtains virtual currency to purchase goods or services. An exchanger is a person engaged as a business in the exchange of virtual currency for real currency, funds, or other virtual currency.

So when in doubt, make sure you know the legalities that pertain to what you’re doing. Exchanging Bitcoin and other cryptocurrencies in person could land you in legal hot water.

Is law enforcement right to go after unlicensed Bitcoin exchanges? Should laws be drafted to make this area clearer? Let us know what you think in the comments below.


Images courtesy of Wikimedia Commons, PxHere, and Flickr.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Jeff Francis

Jeff Francis

Related Posts

Three Arrows

Three Arrows Capital Gets Notice Of Default On $660 Million Voyager Loan

3 days ago
Morgan Creek

Morgan Creek Said To Be In Bid To Secure $250-M To Counter FTX BlockFi Bailout

3 days ago
Harmony

Harmony Dangles $1M Reward For Return Of $100M Stolen Funds – Is It Enough?

3 days ago
Cryptocurrency Firm Babel Finance Strikes Debt Agreement With Counterparties

Cryptocurrency Firm Babel Finance Strikes Debt Agreement With Counterparties

6 days ago
Crypto

Crypto ATMs To Be Installed At Top Hispanic Grocery Chain In 3 U.S. States

6 days ago
quantum computers

Quantum Computers Rise From Australian Lab – A Threat To Cryptocurrency?

6 days ago

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

Bitcoin

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

Altcoins

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

Categories

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

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 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
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • 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
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 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.