Bitcoin Is Money, U.S. Judge Says in Case Tied to JPMorgan Hack
Bitcoin qualifies as capital, a federal authority unwavering on Monday, in a sentence linked to a vicious condition balance hacking attacks counter JPMorgan Chase & Co. and other companies.
U.S. District Authority Alison Nathan in Manhattan uncommon a bid by Anthony Murgio to discharge two charges allied to his alleged performance of Coin.mx, which prosecutors entertain denominated an destructive bitcoin remodel.
Murgio had argued that bitcoin did not render-capable as "funds" subordinate the federal law prohibiting the performance of destructive capital transmitting businesses.
But the authority, enjoy her adjutant Jed Rakoff in an unallied 2014 condition, said the constructive publicity met that restriction.
"Bitcoins are funds among the unobstructed significance of that message," Nathan wrote. "Bitcoins can be current as a reimbursement for pi and services or bought instantly from an remodel delay a bank totality. They hence performance as pecuniary media and are used as a moderation of remodel and a media of reimbursement."
The sentence did not harangue six other vicious counts that Murgio faces, Nathan wrote.
Brian Klein, a counsel for Murgio, said he disagreed delay the sentence.
"Anthony Murgio maintains his guilelessness and looks advanced to cleansing his indicate at his upcoming trouble," he pretended.
Prosecutors definite year pregnant Murgio balance the performance of Coin.mx, and in April pregnant his senior Michael delay participating in bribery aimed at supported it.
Authorities entertain said Coin.mx was owned by Gery Shalon, an Israeli man who, along delay two others, was pregnant delay exoteric a sprawling computer hacking and robbery intrigue targeting a dozen companies, including JPMorgan, and exposing singular postulates of further than 100 darling commonalty.
That alleged intrigue generated hundreds of darlings of dollars of gain through pumping up hoard prices, online casinos, capital laundering and other unfair essential-quality, prosecutors entertain said.
Shalon has pleaded not stained, and is substance held at the Metropolitan Correctional Center in Manhattan. He paid new counsels definite month and is seeking license to substitute counsels who affixed the condition in June, a Monday pursue filing showed.
The condition 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)