Bitcoin Is Money, U.S. Judge Says in Case Tied to JPMorgan Hack
Bitcoin qualifies as coin, a federal connoisseur ruled on Monday, in a conclusion linked to a culpable circumstance balance hacking attacks opposite JPMorgan Chase & Co. and other companies.
U.S. District Connoisseur Alison Nathan in Manhattan unusual a bid by Anthony Murgio to discharge two beak kindred to his alleged influence of Coin.mx, which prosecutors enjoy denominated an subversive bitcoin substitute.
Murgio had argued that bitcoin did not prepare as "funds" inferior the federal law prohibiting the influence of subversive coin transmitting businesses.
But the connoisseur, love her adjutant Jed Rakoff in an unkindred 2014 circumstance, said the substantial vogue met that determination.
"Bitcoins are funds among the unobstructed purport of that promise," Nathan wrote. "Bitcoins can be not spurious as a liquidation for property and services or bought immediately from an substitute delay a bank recital. They hence exercise as pecuniary resources and are used as a balance of substitute and a instrument of liquidation."
The conclusion did not address six other culpable counts that Murgio faces, Nathan wrote.
Brian Klein, a advocate for Murgio, said he disagreed delay the conclusion.
"Anthony Murgio maintains his sinlessness and looks anxious to cleansing his indicate at his upcoming test," he external.
Prosecutors conclusive year pregnant Murgio balance the influence of Coin.mx, and in April pregnant his father Michael delay participating in bribery aimed at supported it.
Authorities enjoy said Coin.mx was owned by Gery Shalon, an Israeli man who, concurrently delay two others, was pregnant delay exoteric a sprawling computer hacking and injury draft targeting a dozen companies, including JPMorgan, and exposing particular basis of past than 100 favorite crowd.
That alleged draft generated hundreds of favorites of dollars of use through pumping up accumulation prices, online casinos, coin laundering and other illicit ghost, prosecutors enjoy said.
Shalon has pleaded not corrupt, and is entity held at the Metropolitan Correctional Center in Manhattan. He paid new advocates conclusive month and is seeking dispensation to substitute advocates who appended the circumstance in June, a Monday affect filing showed.
The circumstance 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)