First arrest for money laundering with Bitcoin

The post-transfer tells about the world's first arrest for money laundering using Bitcoin, and the methods by which the American police work are very curious. Having found Bitcoin traders, undercover agents rubbed themselves into trust and persuaded them to change to Bitcoins, supposedly dirty money, and arrested them for it. Moreover, these traders are ordinary law-abiding citizens who have no criminal record, and now they face 25 years in prison. Actually, translation (removed obvious descriptions of the principles of Bitcoin):

Immediately after the completion of the money-laundering transaction, two armed policemen rush into the hotel room and shout “Police! All lie! ”. But there are no suitcases stuffed with cash in drug dealers, an undercover officer who had allegedly stolen credit cards and Bitcoin virtual currency worked in this deal.

The February arrests of Pascal Reid and Michell Espinoza were the first accusations of money laundering through Bitcoin, according to State Attorney General of Miami-Dade Katherine Fernandez Rundle. This case will be a test of how well criminal law can adapt to new digital forms of payment.

These cyber criminals left us far behind in the skill of laundering dirty money - says Prosecutor Rundle

Investigators found a 29-year-old Reid and a 30-year-old Espinoza in the catalog of bitcoin traders, and then made them separate meetings in restaurants and cafes. They were arrested at the Miami Beach hotel on the same day, but at different times.
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Lawyers say that men have no previous convictions, and they themselves were simply enthusiasts of a new payment format that allows people to convert funds into digital money for online transactions.

However, Secret Service agents and Miami Beach police clearly told arrested people that they wanted to buy Bitcoin for cash, which they allegedly received after breaking into targeted customer information. Undercover agents during clandestine meetings claimed that they were planning to use Bitcoin to acquire even more stolen credit cards.

Lawyers Reid and Espinoza, both of whom plead not guilty, say they will challenge the legal basis of the cases.

My client has never dealt with a stolen credit card. He was just selling personal property, which is Bitcoin. This currency is not recognized in the United States, says Espinoza, Rene Palomino Jr.

In this criminal case, Reid and Espinoza can receive up to 25 years in prison if they are convicted of money laundering and providing unlicensed financial services. Reid released on bail of $ 100,000, but Espinoza is still in custody.

It all started small - one payment of $ 500 was transferred to about half a Bitcoin coin - and in the end, the defendants got to the amount of $ 30,000.

“Cool money. Straight from the freezer, ”the undercover agent says, holding a plastic bag with cash. After Reed takes the package, the undercover agent says, "Let the gas out", this is a signal for the officers outside.

“Are you a cop?” Reid asks. "Are you a policeman?"

His lawyer, Ron Lowy, says the case is simply fabricated.

The government got scared of bitcoin. Apparently, they see this currency as a new means of economic exchange and are worried that they cannot control it. The facts of this case are not like a crime - says Lowy