An argument being presented in an American courtroom will alarm many common sense observers: bitcoin isn’t real money, so someone accused of laundering it shouldn’t be convicted of money laundering.
This is the argument that attorneys are using in asking a Florida judge to dismiss money laundering charges against Michell Espinoza, a Miami man who police say sold and laundered $1,500 worth of bitcoins to undercover detectives, according to The Miami Herald . Economics Professor Testifies
Charles Evans, an economics professor at Barry University, acting as a defense witness, told the court no central government or bank backs bitcoin, regulation of bitcoin varies by jurisdiction, and the IRS considers bitcoin trades the same as bartering. Evans called bitcoin “poker chips that people are willing to buy from you.” The professor was paid $3,000 worth of bitcoins for his appearance.
Espinoza’s lawyers, Prieto and Rene Palomino, want the charges dismissed since bitcoin is not technically considered a form of money under Florida law. Miami-Dade Circuit Judge Teresa Mary Pooler asked for more time to research the matter before making a decision.
Pooler said the topic is “the most fascinating thing I’ve heard in this courtroom in a long time.”
The case is believed to be the first money-laundering charge against someone accused of dealing in bitcoins. Police Sting Nabs Suspect
Police came across Espinoza, who used the pseudonym MichellHack, on LocalBitcoins.com , a bitcoin exchange, and told him they wanted to use bitcoin to buy stolen credit card numbers. They met with him three times in person.
Police arrested Espinoza along with Pascal Reid, who pleaded guilty to acting as an unlicensed money broker.Reid agreed to teach law enforcement about bitcoin in a plea bargain and was sentenced to probation.Evans, the professor, told the court he has been involved with virtual currencies since they […]
