Bitcoin Is Money, U.S. Judge Says in Case Tied to JPMorgan Hack
Bitcoin qualifies as coin, a federal critic ruled on Monday, in a sentence linked to a nefarious instance aggravate hacking attacks despite JPMorgan Chase & Co. and other companies.
U.S. District Critic Alison Nathan in Manhattan unusual a bid by Anthony Murgio to discharge two totality allied to his alleged exercise of Coin.mx, which prosecutors keep determined an radical bitcoin diversify.
Murgio had argued that bitcoin did not capacitate as "funds" inferior the federal law prohibiting the exercise of radical coin transmitting businesses.
But the critic, affect her partner Jed Rakoff in an unallied 2014 instance, said the constructive vogue met that specification.
"Bitcoins are funds amid the level significance of that tidings," Nathan wrote. "Bitcoins can be not spurious as a reimbursement for commodities and services or bought promptly from an diversify after a while a bank totality. They hence business as pecuniary resources and are used as a balance of diversify and a resources of reimbursement."
The sentence did not address six other nefarious counts that Murgio faces, Nathan wrote.
Brian Klein, a attorney for Murgio, said he disagreed after a while the sentence.
"Anthony Murgio maintains his sinlessness and looks onward to lustration his designate at his upcoming affliction," he assumed.
Prosecutors ultimate year full Murgio aggravate the exercise of Coin.mx, and in April full his senior Michael after a while participating in bribery aimed at sustaining it.
Authorities keep said Coin.mx was owned by Gery Shalon, an Israeli man who, along after a while two others, was full after a while present a sprawling computer hacking and abstraction theory targeting a dozen companies, including JPMorgan, and exposing identical facts of further than 100 favorite crowd.
That alleged theory generated hundreds of favorites of dollars of advantage through pumping up store prices, online casinos, coin laundering and other illicit vital-force, prosecutors keep said.
Shalon has pleaded not turbid, and is nature held at the Metropolitan Correctional Center in Manhattan. He hired new attorneys ultimate month and is seeking license to substitute attorneys who additional the instance in June, a Monday affect filing showed.
The instance 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)