The Government Continues Attempts To Take Down Bitcoin Through Nefarious Means

Tyler Durden's picture

Authored by Mac Slavo via SHTFplan.com,

The government really dislikes it when people make a living by conducting moral business practices without paying for their permission to do so

This is all too evident when examining the most recent arrest of a man for selling Bitcoin.

According to local news media reports, a Michigan man named Bradley Anthony Stetkiw has been charged by local authorities for operating an unlicensed money transmitting business.

The charges have been filed in US District Court. According to an indictment released by Detroit TV news services WD-IV Friday, the 52-year-old ran an exchange through the LocalBitcoins website, conducting transactions at restaurants in the Bloomfield area

Stetkiw is alleged to have sold bitcoin without a license (paying for permission from the government) as part of a business venture for approximately two years.

After selling about $150,000 in bitcoin, the feds set up a sting operation to catch Stetkiw. He sold more than $56,000 worth of bitcoin to federal agents through six meetings. Authorities say that that volume of transactions makes him subject to federal anti-money laundering regulations.

The government is not alleging that Stetkiw harmed anyone or took any property. 

He’s in trouble for not paying to register himself as a business. According to the indictment:

Operating under the user name ‘SaltandPepper,’ Stetkiw bought, sold and brokered deals for hundreds of thousands of dollars in bitcoins while failing to comply with the money transmitting business registration requirements set fort in Title 31, United States Code, Section 5330.

Earlier this year, Detroit resident Sal Mansy plead guilty to the charge of operating an unlicensed money services business. He allegedly conducted $2.4 million-worth of transactions over a two-year period ending in July 2015.

Other arrests in Missouri and New York suggest actions against independent U.S. bitcoin sellers are becoming more commonplace.

These arrests also suggest what many have feared for years: the government is attempting to take down bitcoin using nefarious means since they cannot figure out how to regulate the cryptocurrency.

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LawsofPhysics's picture

Stop saying "the government" when it really is the money masters in banking and finance.

No "government" has my consent to do what the fuckers in D.C. are doing. The "government"/republic is dead.

By the way, bankers and financiers have been developing digital currencies and payment systems since the dawn of the telephone and computer.

"Full Faith and Credit"

Same as it ever was...

 


HillaryOdor's picture

No it is the government.  It's what governments do, always.  They don't ask for or care about your permission.  You have to get their permission to do anything.  They don't need yours.  They never did because democracy is a big fat joke.

Same as it ever was.

Shitonya Serfs's picture

Forget the Bitcon for a second, he was operating a business without a license. It's in the original Michigan article: "would meet customers at a Tim Hortons restaurant and sell bitcoins at a premium" Unless you're a kid selling lemonade (maybe not even this anymore), every one has to create a business entity to operate a business...agree with it or not. This is just sensationalizing something benign.

BaBaBouy's picture

Bitcoinz keeps using Phyz GOLD as its Visual Promo ~

LawsofPhysics's picture

Yes, rather odd but just remember when fraud is the status quo, possession is the only "law".

DjangoCat's picture

Try possessing some of that fake gold circulating in Canada.

LawsofPhysics's picture

The good news is that I passed chemistry and still use that knowledge often so I know what I hold is not fake.  Of course, one must also remember that "laws" that cannot be enforced are useless.

Depending who was asking I might even say "what gold"?

Luc X. Ifer's picture

This is the beauty of the blockchain and the mathematical model of a decentralized trust system - centralised oligarch governements can't do anything to contain it totally vs a system controlled by their pawns.

https://www.coindesk.com/australian-central-bank-regulating-blockchain-p...

Shitonya Serfs's picture

The same was said about the Internet: so decentralized, it's never going to be controlled by a few entities

Luc X. Ifer's picture

Well, what u say just shows that your comprehension of mathematics is extremely low - besides that the internet is a communication medium for the blockchain there is nothing resembling one to another.

 

Shitonya Serfs's picture

So, after reading these and the comments below, I guess the point is that Bitcon can be snuffed out by the GOVT, with the stoke of a pen. Wait until more of these stories hit (based on this guy's precedence, if Bitcon was not CIA/FedRes creation, then it will certainly be taken out).

LawsofPhysics's picture

or allowed to run up exponentially higher before being declared invalid and then banned.

Remember, bitcoin is purchased with Central Bank Fiat.

In a fractional reserve system, the bankser/financiers need inflation.

The problem is that the sheeple will start taking heads if inflation is too high...

I wonder if they are not letting cryptos run a bit intentionally just to allow another mechanism for extinguishing bad paper/debt...

Shitonya Serfs's picture

Perhaps, or
a) FedRes/GOVT created [or appropriated control over] BTC
or
b) FedRes/GOVT considers it a threat

In both cases it's a lose. You're either going to be controlled digitally by the creators, or be crushed out by the regulators.

eforce's picture

Read The Protocols, it explains why things don't work, democracy's purpose is to provide a bridge between one form of monarchy and another, it's purposely built to be unstable.

Abiotic Oil's picture

“Only pedos, money launderers, and drug dealers use bitcoin.”

-The Feds

nope-1004's picture

56K in "undeclared income" is the crime?

What a joke.  Billions showed up in duffle bags on the landing strip in Afghanistan and this is the crime we need to solve?

America won't fail because it chooses to, it will fail and crumble because it is wholly corrupt.

 

Grave's picture

meanwhile murderers, rapists, pedophiles, banksters, massmurderers, warcriminals, etc go not only free, but are even rewarded with "peace" prizes

degenerates are laughing in your face
as they consider themselves above the law

BlindMonkey's picture

"Jews are laughing in your face
as they consider themselves above the law (with respect to financial and sex crimes)"

 

Fixed it for ya 

Grave's picture

every group of people has its own share of psychopaths and sociopaths
thats just how the things are with evolution and constant dna mutations.
some groups are just better at keeping their society healthy and level of degenerates at minimum.
other groups not only fail miserably but celebrate degenerates and when the shit hits the fan and chickens come home to roost
they whine, make excuses, play victims, blame everyone else, etc instead of cleaning their own house

anarchitect's picture

Look at the court document.  It's in the United States Court, not a Michigan court.  Try again.

HillaryOdor's picture

Business licenses are in no way benign, and just because they are the law does not make them moral or good.  They are neither.  They do enormous harm to the economy, especially to the poorest people who can't afford to navigate the bureaucracy and now have even fewer options to escape poverty and instead become dependent on state handouts, but then again that's the point, isn't it?  It's only the statist useful idiots who think everything the government does to allegedly protect them must be for the good of all, or if it's the law then it should be obeyed without asking questions.  Sometimes I also hear the dumbest saying of all "If you don't like it vote someone in who will change it."

DjangoCat's picture

That is not what he is busted for.  He is busted for trading in money without a licence.  You can't just go out to the local city hall and get a licence for that.

11b40's picture

So, the State now recognizes BTC as money.  Progress.

slyhill's picture

He did cash transactions over 10k and didn't file the necessary tattle paperwork required by the moneychangers. Doesn't matter what was bought\sold.

doctor10's picture

so what is Fed.gov doing enforcing Michigan state law?

LawsofPhysics's picture

FAIL.  No, that is not my government asshole.

The right to govern comes from the consent of the governed.  Stop being such a pussy and do something about it or shut the fuck up, pretty simple really.

"Full Faith and Credit"

same as it ever was...

HillaryOdor's picture

There's nothing to do.  The whole country is full of idiotic losers who think their government isn't their government.  They believe in a mythical unicorn good government that supposedly used to exist and one day might again, if only people listened to their brilliant ideas on how to run everything.  You know the type.  They tend to post a lot on the internet, smugly ending every post with the same few empty words, thinking they're so deeply intellectual.  Anyway you can't change humanity.  Slavery is encoded in human nature.

 

Same as it ever was.

LawsofPhysics's picture

Again FAIL. Quite a bit starting to happen, but we are going to have to thin out some of the herd to see who is the real power behind the stupidity that you see. Stop believing the bullshit left/right paradigm.  It is put there to distract you.

Obviously, it's working...

"Full Faith and Credit"

rubiconsolutions's picture

Please enlighten us there @LawsofPhysics - how does one withdraw consent? Stop voting? I did that in 1996. Stop paying taxes? Been there done that and the .gov goons took almost everything. Practically speaking how does one withdraw their consent? "The consent of the governed" is a load of crap. The social contract theory of Thomas Hobbes, John Locke, Jean-Jacques Rousseau et al is bovine scat. All they did was convert the "divine right of kings" into "the divine right of gangs". I'm curious how you stopped being a pussy and withdrew your consent. 

HillaryOdor's picture

Well didn't you read his post?  It's not his government (just like antifa incidentally).  He has absolved himself of all responsibility.  You see if the world were run by geniuses like him why we would all be living in utopia right now because he has all the answers.  His government would be a government of the people, not those dirty bankers.  It's all the bankers fault I tells you.  How is the voting public ever supposed to see past all their machinations?  It's impossible.  We just kill them and utopia awaits.  I can taste the freedom already, or maybe it's just the bovine scat you mentioned emanating from his posts.

 

Thoughtless words to make me look intellectual.

LawsofPhysics's picture

First, I do believe the people claiming to "represent" us are finally being exposed for what they really are. Unfortunately, their real masters are having great success with age-old divide and conquer tactics that will continue to work in a world that is full of so many "useful idiots".  I sincerely believe that unfortunately there will be a very serious culling that takes place regardless.  however, here is my recommendation;

1) There are numerous tax exempt-businesses tha afford you with good income, as well as the power and control over productive capacity.  my tribe and I run/own one of the largest farming co-ops in the world. No man is an island so you had better have dependable people who are fully vested.  Most of my employees are former miltary. like myself.

2) Get to know you local "representation". Your tribe and you need to make the effort to let these people know what you think is out of whack, why it needs to be fixed, and how they vote is personal. Most importantly, let them know that you and your tribe are their neighbors.  Fuck D.C., globally, the U.S.S.A is fucked and will continue to decline for generations.

Remember, nothing in life of real value is obtained without real fucking work (specifically energy or calories).  2001 did it fo me. my tribe and I started making frequent visits our political class, glad the rest of you fuckers finally pulled your head out of your ass. Now get with the program.

illuminatus's picture

Ok. laws of physics, why don't you tell us pussies what you are doing about changing the way things are. Please be specific, I really would like know. So you are running a farm, great, but you are still at the mercy of uncle sam just as much as the next pussy that bows his head to authority. If he decides to take you down you are gone. When people fear government you have tyranny, when the government fears people you have democracy. I know what we have here, farmers and all.

MANvsMACHINE's picture

Is transmitting Bitcoin the same as transmitting money?  Unless the government recognizes Bitcoin as money, they have no case.

CJgipper's picture

The IRS opinion and SEC declared it a commodity earlier this year.  I had the same thought as you.

11b40's picture

The article says nothing about trading commodities.  It says money.

tion's picture

I think he means more does bitcoin actually fall under the 31 c.f.r 1010.100 ff 5, the foundation in the conclusion, since bitcoin has been officially legally classed as a commodity.  They prob ought to have picked a different codification as the proclaimed violation, but the basis for the violations lay in the way FRN privilege 'money' was touched.

ILoveGooold's picture

Well it says he was buying and selling it, so I'm sure there were USD on the other side of a lot of those transactions.

SoilMyselfRotten's picture

Bitcoin can be transmitted....I fear i may have contracted an STB

GoinFawr's picture

"Stop saying "the government" when it really is the money masters in banking and finance."

LoP, you make an important distinction; it's a shame that something so obvious is apparently so difficult to understand for so many.

Skeptophrenic's picture

So, dude decides to set up shop and sell some totally unregulated thing to people who don’t know any better and he was clipped.

This sucks because I’ve learned that most people who sell unregulated things are usually on the level and they’re never out to screw the consumer.

HRClinton's picture

This article is an example of why -- as I posted as recently as yesterday --

When I plan to sell my Crypto, it and I will be in a Tax Jurisdiction outside the USSA and its (((IRS))).  Perfectly legal, bitchez.

You peeps should know that there are many tax jurisdictions, that have very attractive rates.

Especially if you have a tax lawyer negotiate on your behalf with their tax authorities: "I've got a foreign client, who is interested in monetizing his taxable assets in your country.  We are looking at various countries.  What kind of rates can you offer?"  You'd be amazed at how friendly and reasonable they suddenly get.

Why do you think that people with money and corporations move and keep their money offshore?  IRS taxes are for the little people, the milkable/taxable Goyim, and the congenitally stubborn fools.

sessinpo's picture

The government is alive and well. It's just not a government you endorse. But it's there despite your denial.

tmosley's picture

The REAL mark of the beast. Tax ID.

LawsofPhysics's picture

Sounds like you need a better accountant or tax attorney.

tmosley's picture

I was unaware that tax attornies could save you from the Tribulation.

Don't think they mentioned that in Revelation.

LawsofPhysics's picture

Come on Tom, as you have said before, "laws" and "taxes" are for the little people.

LOL!

FYI, I thought bitcoin was your new "revolution"?!?!?!  I think you used the wrong word there Tom, time to change your medication!

Again, thanks for making us all smile!

tmosley's picture

To be honest, you are the one acting like a crazy person.

Each post seems more deranged than the last.

FULL FAITH AND CREDIT@@!!!!!@!!!@!!!!!!!@!!@!@!@!@!@!@!@!@!@!!!!!!!!!121211212212!21!

LawsofPhysics's picture

LOL!!!

Yeah, you're a genius!

Again, thanks for the laughs!