LBN
  • Home
  • News
    • Altcoin News
    • Bitcoin News
    • Exchange News
    • Dogecoin News
    • Litecoin News
  • Charts
    • BTCUSD Chart
    • LTCUSD Chart
    • ETHUSD Chart
    • ETCUSD Chart
    • XMRUSD Chart
    • DASHUSD Chart
  • Education
    • Bitcoin Glossary
    • How to Trade Bitcoin
    • Why Use Bitcoin?
    • Bitcoin Wallet
    • How to Buy Bitcoin
    • How Can I Mine Bitcoin?
    • How Can I Buy Litecoin?
    • How Can I Mine Litecoin?
    • Current Bitcoin Regulation
  • Press Releases
    • View All Press Releases
    • Submit a Press Release
  • Advertise
No Result
View All Result
LBN
  • Home
  • News
    • Altcoin News
    • Bitcoin News
    • Exchange News
    • Dogecoin News
    • Litecoin News
  • Charts
    • BTCUSD Chart
    • LTCUSD Chart
    • ETHUSD Chart
    • ETCUSD Chart
    • XMRUSD Chart
    • DASHUSD Chart
  • Education
    • Bitcoin Glossary
    • How to Trade Bitcoin
    • Why Use Bitcoin?
    • Bitcoin Wallet
    • How to Buy Bitcoin
    • How Can I Mine Bitcoin?
    • How Can I Buy Litecoin?
    • How Can I Mine Litecoin?
    • Current Bitcoin Regulation
  • Press Releases
    • View All Press Releases
    • Submit a Press Release
  • Advertise
No Result
View All Result
LBN
No Result
View All Result
Bitcoin News

Bitcoin Traders Pleaded Guilty Over Unlicensed Money Transmitting Business

by Deepak Tiwari
September 5, 2014
in Bitcoin News
Share
logo

Earn Your First Bitcoin Sign up and get $12 Bonus Referral bonus up to $3,000

Sign up

Launched in 2009 as an open-source platform with a peer-to-peer architecture, Bitcoin does not only appeal for merchants and consumers who want to have fast and efficient transactions online but also to those who are engaging in illicit activities.

Last January, two bitcoin traders accused of running unlicensed money transfers were arrested. Charlie Shrem from BitInstant.com and another trader named Robert Faiella pleaded guilty in a New York federal court after being accused of selling $1 million bitcoins to users of the Silk Road, an online drug marketplace.

The two traders exchanged almost $1 million in cash allowing users to have illegal purchases on Silk Road. Prosecutors say that the bitcoin exchange took place from December 2011 until the site was finally shut down. The traders violated the law as they failed to register their money transmitting business with the Treasury Department and that they’re involved in an illicit transaction.

Bitcoin Payment Network Poses Risks

The guilty plea of the arrested bitcoin traders made headlines. But what concerns the officials is the alarming security issue that arises with the anonymity of the payment network.

Bitcoins are used in exchange for traditional currencies. Along the convenience that it offers to users is the fact that there are also security issues and safety concerns as the payment network is also abused and misused by some for money laundering and other illegal activities.

Apart from the two traders who were arrested who pleaded guilty for transmitting money in an online black market known to be a drug haven, there are other security risks involved in using this payment network.

As a decentralized digital currency that is traded, it is not directly regulated by any agency which makes it prone to different kinds of misuse and abuse. Federal agents say that it entices criminals. Apart from unlicensed money transfers, the bitcoin system can also be misused by human traffickers, terrorists, money launderers and other criminals who want to have online monetary transfers without going through the conventional financial systems.

According to an FBI report, it is difficult to track down the identity of Bitcoin users which makes it difficult for law enforcement agencies to handle and identify suspicious users and transactions. Bitcoins are legal in the United States and there are now a lot of businesses accepting it as a form of payment.

Need for Proper Regulation

The bitcoin economy without a doubt has a lot of potential. It connects companies, businesses and individuals who can have faster means to receive and pay online. But as the bitcoin economy grows and the as the network expands with more people using bitcoins, there is also an increasing clamor to have the necessary regulation in order to protect the welfare and interest of consumers and at the same time, to deter any illegal activity. Regulating the payment network in a way that would not affect emerging bitcoin based businesses can ensure the safety and security of people using the platform for various deals and transactions.

Related Posts

Company Accused of Using COVID Relief Funds to Buy Crypto
Bitcoin News

Company Accused of Using COVID Relief Funds to Buy Crypto

The owner of the Carolina Fish Market in Ballantyne, North Carolina is in trouble for using a COVID-based loan...

by Nick Marinoff
September 21, 2023
Congressman Ritchie Torres Slams the SEC for Anti-Crypto Measures
Bitcoin News

The SEC Must Finally Decide on a Bitcoin ETF Application from ARK Invest

The Securities and Exchange Commission (SEC) is required to give an official decision regarding a new bitcoin-based exchange-traded fund...

by Nick Marinoff
September 21, 2023
Is Paraguay Looking to Make BTC Legal Tender?
Bitcoin News

Is Paraguay Looking to Make BTC Legal Tender?

The South American country of Paraguay is allegedly paving the way for crypto adoption like El Salvador, its neighbor...

by Nick Marinoff
September 20, 2023
Singapore Red Cross Says “Yes” to Crypto
Bitcoin News

Singapore Red Cross Says “Yes” to Crypto

Singapore Red Cross, a humanitarian aid organization, has agreed to accept donations in crypto. At this time, all those...

by Nick Marinoff
September 20, 2023

Top Casinos

Crypto Casinos
Crypto Casinos
Bonus Finder
Bonus Finder

Press Releases

  • Alaya: The Pioneer of Artificial Intelligence Data

  • Zeebu Secures $25 Million in Presale Funding for World’s First On-chain Invoice Settlement...

  • Reef Labs $10M Accelerator Program COHORT 1 Begins, Paving the Way for Web3 Innovators

  • Registration for the Finance Magnates London Summit 2023 is officially open!

  • Tapbit Introduces Contract Copy Trading: Unlocking Profits for All Investors in the Cryptocurrency...

About us:

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies. We cover BTC news related to bitcoin…

Follow us:

  • This field is for validation purposes and should be left unchanged.

  • About
  • Partners
  • PR
  • Advertising
  • Privacy
  • T&C
  • Contact
  • Trading Software
  • Online Casinos Germany

© 2023 Live Bitcoin News. All Rights Reserved.

No Result
View All Result
  • Home
  • News
    • Altcoin News
    • Bitcoin News
    • Exchange News
    • Dogecoin News
    • Litecoin News
  • Charts
    • BTCUSD Chart
    • LTCUSD Chart
    • ETHUSD Chart
    • ETCUSD Chart
    • XMRUSD Chart
    • DASHUSD Chart
  • Education
    • Bitcoin Glossary
    • How to Trade Bitcoin
    • Why Use Bitcoin?
    • Bitcoin Wallet
    • How to Buy Bitcoin
    • How Can I Mine Bitcoin?
    • How Can I Buy Litecoin?
    • How Can I Mine Litecoin?
    • Current Bitcoin Regulation
  • Press Releases
    • View All Press Releases
    • Submit a Press Release
  • Advertise

© 2023 Live Bitcoin News. 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.
Go to mobile version