Overview of legal cases, complaints, and regulatory actions

Update as of Feb 19, 2014: So, this thread isn’t really gonna be updated much anymore. As Bitcoin spreads around the globe, every country or state is gonna have its own info regarding how they deal with Bitcoin. Feel free to keep posting, but just know this list won’t be anywhere near as comprehensive as it used to be for a while. Other resources: - en.wikipedia.org/wiki/Legality_of_bitcoin_by_country (added Sep 3, 2015) - coincenter.org/2015/06/tracking-bitcoin-regulation-state-by-state (added Sep 3, 2015) - coindesk.com/regulation (added Sep 3, 2015) - merkletree.io (previously bitlegal.io I think) (added Sep 7, 2015) - cryptocoinlaw.net - twitter.com/virtuallylaw - BitcoinFoundation.org - coindesk.com - datauthority.org (info: coindesk.com/bitcoin-industry-leaders-launch-data-a-self-regulatory-body) - bitcoinfinancialassociation.org - en.bitcoin.it/wiki/Compilation_of_legal_and_regulatory_information This list is meant to be a go-to for all the stuff where Bitcoin gets involved with courts, police, regulators, and so on. It’s kinda like how the NEW Articles in the Press Forum thread tracks media mentions. If you’re looking for topics on regulations, taxes, etc, you can find them in a Bitcoin.it Wiki article: Compilation of legal and regulatory information en.bitcoin.it/wiki/Compilation_of_legal_and_regulatory_information I just want this thread to stay an index of sorts, mostly with just updates.

Bitcoin in France: first legal decision directly related to Bitcoin? Sep. 4, 2011 Location: France Abstract: Mt. Gox fights for its right to hold a bank account in France.  - http://bitcointalk.org/index.php?topic=41317.0  - http://creperso.free.fr/CIC/Ordonnance_de_refere_du_11_aout_2011.pdf (Municipal court decision)  - http://creperso.free.fr/CIC/Arret_appel_26_aout_2011.pdf (Appeals court decision)

Press Release - TradeHill, Inc. Files Suit Against Dwolla, Inc. Mar 6, 2012 Location: Suit filed in California, U.S. Abstract: Dwolla allegedly reversed transactions. TradeHill asserts Dwolla promoted its service as being like cash with no chargebacks and sues for damages.  - http://bitcointalk.org/index.php?topic=67625.0

An interesting read about Bitcoin & legislation... Oct. 26, 2011 Location: UK Abstract: (Allegedly) the British regulator FSA responds to a question regarding Bitcoin's legal status as a monetary instrument.  - http://bitcointalk.org/index.php?topic=49862.0

Bitcoin FBI Report April 2012 May 8, 2012 Location: U.S. agency, International distribution Abstract: (Allegedly) The FBI provides analysis of bitcoin for distribution to an international audience  - http://bitcointalk.org/index.php?topic=80114.0

Disclosure Group Investment Bitcoin barred by the CVM in Brazil Jul. 25, 2012 Location: Brazil Abstract: CVM (securities regulator in Brazil) decided that the Brazilian operator of a bitcoin-based "investment group" was violating securities law there and had to suspend the group.  - http://www.bitcoinbrasil.com.br/?p=464  - http://www.bitcoinmoney.com/post/28048708075  - http://bitcointalk.org/index.php?topic=95399.0

FinCEN - Freedom of Information Act (FOIA) request: "The application of money transmitter and foreign exchange ("forex") regulations to de-centralized, virtual currency." Jun 29, 2012 Location: United States Abstract: Gavin Andresen gets a response from FinCEN following a FOIA request:  - http://dl.dropbox.com/u/38065353/FincenFOIA.pdf  - http://bitcointalk.org/index.php?topic=74922.msg1035436#msg1035436

Finanstilsynet - The Financial Supervisory Authority of Norway RAPPORT RISIKO- OG SÅRBARHETSANALYSE (ROS) March, 2012 Abstract: The financial supervisory authority of Norway publishes a Risk and Vulnerability analysis and references Bitcoin under "2.4.3 titled 'Shadow services on the internet'".  Includes only a description (an inaccurate one at that) of Bitcoin.  - http://bitcointalk.org/index.php?topic=96077.0  - http://www.finanstilsynet.no/Global/Venstremeny/Rapport/2012/ROS-analyse_2011.pdf

Financial Transactions and Reports Analysis Centre of Canada Money Laundering and Terrorist Activity Financing Watch April-June 2011 Abstract: Mentions Bitcoin as "Bitcoins: a new anonymous digital currency and a potential vehicle for criminals to transfer money:" English: http://www.fintrac-canafe.gc.ca/publications/watch-regard/2011-10-eng.asp French: http://www.canafe-fintrac.gc.ca/publications/watch-regard/2011-10-fra.asp

Congressman Ron Paul's Final Domestic Monetary Policy Subcommittee Hearing Aug 2, 2012 Location: United States Abstract: Ron Paul's subcommittee met on August 2nd, 2012 to examine sound money and parallel currencies.  - http://www.youtube.com/watch?v=oPCFKHCCKF0&feature=player_detailpage#t=2918s Bitcoin touched on beginning around 48:38 and it was referred to in the context of being a barter currency.

Title: BRIAN CARTMELL et al VS. BITCOINICA LP, ALSO KNOWN AS BITCOINICA et al Cause of Action: CONTRACT/WARRANTY Case Number: CGC-12-522983 Location: Superior Court of California, County of San Francisco August 6, 2012 Abstract: Suit to recover $460,458 in costs and damages from Bitcoinica.  - http://webaccess.sftc.org/Scripts/Magic94/mgrqispi94.dll?APPNAME=IJS&PRGNAME=ROA22&ARGUMENTS=-ACGC12522983  - http://www.bbc.com/news/technology-19244210

Bitcoin for campaign contributions passes muster with NH Deputy Secretary of State August 29, 2012 Location: New Hampshire, U.S. Abstract: NH State Representative Mark Warden consulted with NH Deputy Secretary of State regarding whether bitcoins can be a method for campaign donations.  - http://bitcointalk.org/index.php?topic=104544.0 Conclusion: OK as long as: 1. Donations be accompanied by the donor's name and address, and 2. Contributions are acceptable only from US citizens and permanent residents.

BitFloor files complaint with FBI and Internet Crime Complaint Center (IC3). September 6, 2012 Location: New York City, NY USA Abstract: BitFloor suffered a security breach/hack in which about 24,000 BTC were stolen after access by the hacker was obtained to an unencrypted backup copy of the private keys hosted on BitFloor's systems.  The exchange is essentially insolvent as a result and remains shuttered, except for facilitating withdrawals for the funds that weren't stolen -- the U.S. dollar balances, none of which were impacted as a result of the security breach.  - http://bitcointalk.org/index.php?topic=106251.0

BaFin deems Bitcoin as "unit of account", financial service providers thus regulated by the Banking Act (KWG) October, 2012 Location: Germany Abstract: It appears that any business operating out of Germany (or, maybe even more broadly, a business with German customers) that holds customer's bitcoins is regulated as a bank (presumably, that means must obtain a banking license).   [Based on the translation to English from German, which may have changed the the meaning from the original, so this may be not completely accurate.] The following appears to be the response to an inquiry sent to BaFin regarding bitcoins: An article in which this was discussed: http://translate.google.com/translate?sl=de&tl=en&js=n&prev=_t&hl=de&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fwww.heise.de%2Fix%2Fartikel%2FWaehrungsrisiken-1723975.html&act=url

Statement by Päivi Heikkinen, department head of (Financial Markets Infrastructure) at Bank of Finland September, 2012 Location: Finland Abstract: A reporter asks if Bitcoin is illegal.  Ms. Heikkinen responds [Translated from Finnish] "Not at all, People can invest in and use any money they prefer." Heikkinen: Not at all, People can invest in and use any money they prefer. Heikkinen: Finland is a free country, after all.  - http://www.youtube.com/watch?v=7vYH1JH73pw#t=206s  <-- Enabled closed captioning [CC] at the bottom of the video.

Bitcoin - Currency of Cyberspace (Italian) October, 2012 Location: Italy Abstract: The domestic secret police / intelligence agency of Italy provides an overview of Bitcoin.  They highlight the ways in which Bitcoin either defeats or bypasses methods of control that regulators enjoy through the banking-system.  For instance, the UIGEA which helped eliminate sources of revenue for online gambling in the U.S. is not a deterrent to Bitcoin-based online gambling. The report is a little over the top though ... [Is Bitcoin Magazine's choice of a Guy Fawkes mask for the cover of its initial issue] the announcement of the extension of the potential of the most insidious and dangerous group of cyberattivistists?  - http://gnosis.aisi.gov.it/gnosis/Rivista31.nsf/ServNavig/11

Virtual Currency Schemes, by the European Central Bank (ECB) October, 2012 Location: Europe Abstract: This report presents includes a comprehensive look at Bitcoin and provides an assessment of the relevance of virtual currency schemes for central banks, paying attention mostly to schemes which are more open and linked to the real economy.  The assessment covers the stability of prices, of the financial system and of the payment system, looking also at the regulatory perspective. It also addresses reputational risk concerns. Length: 55 Pages.  - http://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdf  - http://docs.google.com/viewer?url=www.ecb.europa.eu%2Fpub%2Fpdf%2Fother%2Fvirtualcurrencyschemes201210en.pdf  <-- In a web-viewer Forum discussion of the report here:  - http://bitcointalk.org/index.php?topic=121186.0

Search and Seizure Warrant, by U.S. District Court (Middle District, TN) September 13, 2012 Location: Franklin, TN, USA Abstract: The U.S. Secret Service, investigating the Romney tax return extortion attempt, obtains a search warrant to allow for the seizure of Michael M. Brown's Bitcoin wallet.  They did seize much computer equipment, some personal effects and a notepaper containing passwords.  - http://mbdonationfund.com/images/documents/search_warrant.pdf Further discussion here: - http://bitcointalk.org/index.php?topic=123956.0

This one isn't about bitcoin itself, but bitcoin was mentioned as the currency used. Australia court Silk Road January, 2013 Location: Melbourne, Australia Abstract: An Australian court hearing involving a man who admitted dealing drugs that were obtained through Silk Road using bitcoins as payment. Secret website harboured drugs smorgasbord, court hears  - http://www.bordermail.com.au/story/1270129/secret-website-harboured-drugs-smorgasbord-court-hears Further discussion: 2013-01-31 bordermail.com.au - Secret website harboured drugs smorgasbord, court  - http://bitcointalk.org/index.php?topic=140111.0

Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies March 18, 2013 Location: USA Abstract: The U.S. Dept. of Treasury's FinCEN has provided its guidance relating to virtual currencies (presumably including Bitcoin).  - http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html Further discussion here: FinCEN addresses Bitcoin - http://bitcointalk.org/index.php?topic=154672.0 Today, we are all money transmitters… (no, really!) Patrick Murck, Bitcoin Foundation general counsel  - https://bitcoinfoundation.org/blog/?p=152