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Bitcoin Crime

Bitcoin Trader Agrees To Work For Police In Plea Agreement 111

An anonymous reader writes: Florida Bitcoin trader Pascal Reid, who was arrested in a February 2014 sting operation as part of his plea agreement, promised to carry out 20 sessions of law enforcement training in Bitcoin as well as serve as a consultant in criminal cases involving Bitcoin. This is in addition to 90 days in jail with credit for time served and a $500 reimbursement to the State of Florida for the expense of prosecuting him. Qntra has a write up on the case and the full text of the draft plea agreement.
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Bitcoin Trader Agrees To Work For Police In Plea Agreement

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  • I wonder... (Score:1, Funny)

    by Anonymous Coward
    Judge: "$500 reimbursement to the State of Florida for the expense of prosecution"
    Reid: "Can I pay that in Bitcoins???"
  • Bitcoin is not money (Score:4, Interesting)

    by Tokolosh ( 1256448 ) on Thursday September 17, 2015 @07:48PM (#50545863)

    It is a commodity, according to today's news at https://news.yahoo.com/cftc-br... [yahoo.com]

    But according to the plea bargain "The Defendant, PASCAL REID, will enter a plea of guilty
    to count three (3) Unauthorized Money Transmitter in violation of Florida Statute 560.125(5)(A)."

    So what is it? Money or commodity?

    • by Spy Handler ( 822350 ) on Thursday September 17, 2015 @08:01PM (#50545927) Homepage Journal

      The money laundering charge he received wasn't because bitcoin is money, it's because he agreed to take $30,000 and help them pay for stolen credit cards by converting their US dollars (money) into bitcoin with which they can swap for the CC numbers. Instead of bitcoin they could've used gold bars or silver or pearl necklaces, it's just that bitcoin was more convenient.

    • by mysidia ( 191772 )

      The plea agreement doesn't decide what it is; he chooses to plead guilty in exchange for some deal, instead of having a day in court, even if the charges have no merit.

    • by raymorris ( 2726007 ) on Thursday September 17, 2015 @08:08PM (#50545963) Journal

      First, he took $25,000 USD cash. Since cash is most definitely money, money was involved. Bitcoin was also involved.

      Secondly, a commodity is a fungible thing of value.
        Money is a fungible thing of value (commodity) that does not spoil (it's a store of value) which can readily exchanged within a community.

      So if it's money it is therefore also a commodity. It's not either/or , it's "yes, this is a commodity, is it also money".

      • Money is a fungible thing of value (commodity) that does not spoil

        Fiat money spoils. It's called inflation. Bitcoin, on the other hand, aims to be deflationary.

        • by Anonymous Coward

          Money is a fungible thing of value (commodity) that does not spoil

          Fiat money spoils. It's called inflation. Bitcoin, on the other hand, aims to be deflationary.

          So in other words, fiat money gradually over time becomes worthless. Bitcoin is worthless right form the start.

        • by Kjella ( 173770 )

          Fiat money spoils. It's called inflation. Bitcoin, on the other hand, aims to be deflationary.

          If you confuse inflation with one of the causes of inflation - printing money. Inflation is a rise in the general price level or a loss of purchasing power, depending on how you look at it. A bitcoin was worth over $1000, now it's worth closer to $200 so that's an actual 80% loss in purchasing power assuming you bought in at the top and live in the US. For the people who just want to use Bitcoin as an intermediary between other currencies you just need a small amount of coins that you keep swapping around,

        • Seriously, people who think that sustained deflation is workable in a currency need to go and take ECON 200 again and l2money.

  • LOLbertarians (Score:1, Flamebait)

    by PopeRatzo ( 965947 )

    Of course he agreed to work for the police. Because at heart, every BroCoin libertarian is just a punk who will suck the swinging dick of whichever daddy figure has the power.

    • by rtb61 ( 674572 )

      Limits with criminal working with law enforcement. If law enforcement needs to take advice from criminals, than something is hugely amiss with their training. The only thing criminals should become involved with in regard to policing is testifying about other crimes already committed, nothing more. Pay an honest computer geek/nerd to do it, if it is actually worth doing. This stupid short cut of working with criminals just results in criminally run investigations, where the criminal again seeks to gain adv

      • Limits with criminal working with law enforcement. If law enforcement needs to take advice from criminals, than something is hugely amiss with their training.

        They're going straight to the source to find out what the criminals do so they can figure out how to defeat them. That's pretty much exactly what they ought to be doing...

  • While I don't have a problem with plea deals in concept (they do have their issues) I have a problem with this one because it's using the person to provide services that the police department would normally have to pay for. So is this going to be a trend now? When someone with knowledge that the police would normally hire in a consultant for they just make sure that there's a clause in the plea deal saying the person has to help the police. Why stop with consultants? Instead of community service you hav

    • Isn't this what people here have been demanding for years? Someone gets busted for a 'computer crime', and instead of a long sentence, work for/with the police to help prevent such in the future.

      Well, here's one. And people still bitch about it.
    • if you did something wrong you deserved to be punished

      i am pretty sure the punished themselves would rather be doing something constructive than rotting in a prison cell

      would it be better for this convict to be in jail for the rest of his life? better for society? better for himself?

      https://en.wikipedia.org/wiki/... [wikipedia.org]

      • Doing something constructive is better than being in prison but I object to it taking away a paid job. The police have the resources to pay for someone to consult on computer crimes. The do it know. I'd prefer to see the plea bargain include so many hours teaching computers at a volunteer program for disadvantaged persons or something similar. By having the deal include the consulting for the police it means that the person currently consulting for the police has now lost that work. While probably it w

  • Florida Bitcoin trader Pascal Reid, who was arrested in a February 2014 sting operation as part of his plea agreement, promised to...

    Why did he agree to be arrested? It makes no sense. Surely if he was at the plea bargain stage that had already happened?

    Now if you meant "Florida Bitcoin trader Pascal Reid, who was arrested in a February 2014 sting operation, promised as part of his plea agreement to ..." then there's a way to write that.

  • by Chas ( 5144 )

    So. He gets to con ANOTHER group of suckers into believing that Bitcoin is a Good Thing? Right?

    Pfft.

  • An uninformed person reading that summary could be forgiven for thinking that trading in Bitcoins was his crime! I'm sure the words 'money laundering' could have been worked in there somewhere.

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