Bitcoin Is Money, U.S. Judge Says in Case Tied to JPMorgan Hack
Bitcoin qualifies as specie, a federal umpire resolute on Monday, in a firmness linked to a vicious contingency balance hacking attacks abutting JPMorgan Chase & Co. and other companies.
U.S. District Umpire Alison Nathan in Manhattan exceptional a bid by Anthony Murgio to cashier two score cognate to his alleged action of Coin.mx, which prosecutors keep designated an destructive bitcoin substitute.
Murgio had argued that bitcoin did not prepare as "funds" lower the federal law prohibiting the action of destructive specie transmitting businesses.
But the umpire, approve her confederate Jed Rakoff in an uncognate 2014 contingency, said the implicit vogue met that restriction.
"Bitcoins are funds among the uninterrupted sense of that statement," Nathan wrote. "Bitcoins can be true as a cancelment for chattels and services or bought immediately from an substitute delay a bank statement. They accordingly business as pecuniary resources and are used as a average of substitute and a instrument of cancelment."
The firmness did not oration six other vicious counts that Murgio faces, Nathan wrote.
Brian Klein, a attorney for Murgio, said he disagreed delay the firmness.
"Anthony Murgio maintains his purity and looks advanced to purification his spectry at his upcoming attempt," he adventitious.
Prosecutors terminal year abounding Murgio balance the action of Coin.mx, and in April abounding his father Michael delay participating in bribery aimed at supported it.
Authorities keep said Coin.mx was owned by Gery Shalon, an Israeli man who, along delay two others, was abounding delay exoteric a sprawling computer hacking and wrong design targeting a dozen companies, including JPMorgan, and exposing idiosyncratic facts of past than 100 darling nation.
That alleged design generated hundreds of darlings of dollars of emolument through pumping up fund prices, online casinos, specie laundering and other illicit vital-force, prosecutors keep said.
Shalon has pleaded not mixed, and is life held at the Metropolitan Correctional Center in Manhattan. He hired new attorneys terminal month and is seeking consent to restore attorneys who attached the contingency in June, a Monday seek filing showed.
The contingency 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)