Bitcoin Ruled as Money by Second Judge

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Summary: Another judge has ruled that bitcoin meets the definition of being legitimate money in a criminal case against Bitcoin.mx leader Anthony Murgio.

A federal judge stated in her ruling Monday that Bitcoin is money. The ruling came in a criminal case regarding hacking attacks on JPMorgan Chase & Co as well as other companies.

  

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Anthony Murgio plea for the dismissal of two charges against his operation of Coin.mx was rejected by U.S. District Judge Alison Nathan. Prosecutors called his operation an unlicensed bitcoin exchange. Murgio argued that bitcoin does not qualify as money under federal laws prohibiting the operation of unlicensed money transmitting businesses.

Read Vice President of Bitcoin Arrested for Laundering.

Judge Nathan is the second judge to come to the conclusion that virtual currency does actually meet that definition. Judge Jed Rakoff ruled on his unrelated case in 2014. Nathan explained, “Bitcoins are funds within the plain meaning of that term. Bitcoins can be accepted as a payment of goods and services or bought directly from an exchange with a bank account. They therefore function as pecuniary resources and are used as a medium of exchange and a means of payment.”

Murgio faces six other criminal counts. His lawyer Brian Klein disagreed with the one ruling. He said, “Anthony Murgio maintains his innocence and looks forward to clearing his name at his upcoming trial.” Murgio was charged last year for his operation of Coin.mx and his father was charged last April for bribery in supporting the operation.

See Alibaba Ban: China Tightens Rules around Bitcoins.

Coin.mx is owned by Gery Shalon, an Israeli man, and two other men. They have been charged with running an extensive compute hacking and fraud scheme that targeted several companies including JPMorgan. The personal data of over 100 million people was exposed in the process. Hundreds of millions of dollars in profit was generated through the scheme by inflated stock prices, money laundering, online casinos, and other illegal acts.

Shalon has pleaded not guilty while he is held at the Metropolitan Correctional Center in Manhattan. He has hired new lawyers and is seeking permission to add them onto the case.

Have you ever used Bitcoin? If so, tell us your experience in the comments below.

To learn more about Bitcoin, read Bitcoin in Money Laundering Operations.

Photo: idimmu.net