In AML case, judge rules that Bitcoin is not money
A Miami judge yesterday dismissed felony charges for money-laundering using Bitcoin—and she declared that by any legal definition Bitcoin is not actual money.
The case involved felony charges against a man accused of “illegally transmitting and laundering $1,500 worth of Bitcoins.” He had been approached by undercover agents from Miami Beach who had told the man that they wanted to use the Bitcoins to buy stolen credit-card numbers.
Judge Teresa Pooler, however, ruled that Bitcoin is not backed by any government nor was it tangible wealth like gold bars. She wrote in her order that “the court is not an expert in economics; however, it is very clear, even to someone with limited knowledge in the area, the Bitcoin has a long way to go before it the equivalent of money.”
Judge Pooler also criticized Florida’s anti-money laundering law as being too vague and lacking in singular and enforceable meaning. She said that in this case, the accused had simply sold his personal property—the Bitcoins—to the undercover agents.
Pascal Reid, an associate of the accused, pleaded guilty to acting as an unlicensed money broker for his part in the case. The accused in the AML case was found not to have been running an unlicensed money service business.
The defense team in the money laundering case called on expert testimony from Professor Charles Evans, an economist. Evans made the initial argument that Bitcoin is not money and that the IRS currently views it as a bartering tool. He himself likened Bitcoins to poker chips that people are willing to pay for.
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