This just in from Krebs on Security, on Thursday the 6th of February, two Floridians have been arrested for breaking state level anti-money laundering laws in place in Florida.
Michael Espinoza, whom went by Michaelhack on Localbitcoins, and Pascal Reid, whom went by proy33 on Localbitcoins, were both arrested yesterday on anti-money laundering and unlicensed money transmitter charges.
Both individuals were arrested at meetings with undercover police officers whom had arranged to buy $30,000 worth of Bitcoins. Notably, both instances involved $1,000 “trust establishing” buys by investigators before the “Bitcoin dealers” were brought down.
What laws were broken?
Chapter 560 Section 125 from Florida’s state statutes on regulation of trade, commerce, investment, and solicitations specifically prohibits non-licensed individuals or businesses to provide currency or payment instruments exceeding $300 but less than $20,000 in any 12-month period.
Chapter 896 Section 101, Florida’s Money Laundering Act, prohibits the trade or business in currency of more than $10,000.