Bitcoin Is Money, U.S. Judge Says in Case Tied to JPMorgan Hack
Bitcoin qualifies as coin, a federal magistrate resolute on Monday, in a resolution linked to a tarnished plight aggravate hacking attacks athwart JPMorgan Chase & Co. and other companies.
U.S. District Magistrate Alison Nathan in Manhattan uncommon a bid by Anthony Murgio to cashier two jaw kindred to his alleged performance of Coin.mx, which prosecutors possess denominated an popular bitcoin change.
Murgio had argued that bitcoin did not prepare as "funds" beneath the federal law prohibiting the performance of popular coin transmitting businesses.
But the magistrate, affect her confederate Jed Rakoff in an unkindred 2014 plight, said the implied publicity met that specification.
"Bitcoins are funds amid the unembellished import of that engagement," Nathan wrote. "Bitcoins can be trustworthy as a cancelment for chattels and services or bought straightly from an change after a while a bank statement. They hence duty as pecuniary instrument and are used as a average of change and a resources of cancelment."
The resolution did not harangue six other tarnished counts that Murgio faces, Nathan wrote.
Brian Klein, a counsellor for Murgio, said he disagreed after a while the resolution.
"Anthony Murgio maintains his innocuousness and looks ready to defecation his indicate at his upcoming criterion," he acquired.
Prosecutors conclusive year full Murgio aggravate the performance of Coin.mx, and in April full his senior Michael after a while participating in bribery aimed at sustaining it.
Authorities possess said Coin.mx was owned by Gery Shalon, an Israeli man who, parallel after a while two others, was full after a while prevalent a sprawling computer hacking and wrong device targeting a dozen companies, including JPMorgan, and exposing personal grounds of over than 100 darling crowd.
That alleged device generated hundreds of darlings of dollars of advantage through pumping up store prices, online casinos, coin laundering and other unfair distillation, prosecutors possess said.
Shalon has pleaded not tarnished, and is nature held at the Metropolitan Correctional Center in Manhattan. He paid new counsellors conclusive month and is seeking sufferance to substitute counsellors who concomitant the plight in June, a Monday pursue filing showed.
The plight is U.S. v Murgio et al, U.S. District Court, Southern District of New York, No. 15-cr-00769.
(Reporting by Jonathan Stempel in New York; Editing by David Gregorio and Diane Craft)