Caution is advised for people who are thinking about selling bitcoin for cash inside the United States to people they don’t know. As served by a recent California case, a reminder to stay alert for undercover government agents who might try to entrap you have been brought to light.
The Immigration and Customs Enforcement (ICE) which is the federal government law enforcement body under the jurisdiction of the US Department of Homeland Security, arrested an American citizen earlier this month for selling bitcoin.
The charges of operating an unlicensed money transmitting business and laundering monetary instruments were slapped on Morgan Rockcoons (aka Morgan Rockwell) by the Southern District Court of California. The records further show that the government seeks the forfeiture of all his assets related to the matter.
For the proceeds of a specified unlawful activity with a law enforcement officer, the accused knowingly conducted a financial transaction with regards to the money laundering count. An undercover officer traded $14,500 in fiat for 9.99 BTC in exchange for the proceeds of manufacturing and distributing “hash oil”. Hash oil is listed as a controlled substance under Schedule I by US federal law and is the principal psychoactive constituent of cannabis.
Any individual who trades in larger amounts of bitcoin, not on an approved exchange can be accused by US authorities in regarding the count of operating unlicensed money transmitting. Any transaction of $3,000 or more must comply with know-your-customer (KYC) regulations claimed an agent that a Localbitcoins user from Michigan was charged.