A member of the Libertarian Party received a 4-year prison sentence apparently for using Bitcoin
According to a press release from the Libertarian Party (PL), Randall Lord, one of its members based in Louisana, received a sentence of 46 months in prison for operating an unregistered financial service using Bitcoin. The Party has stated that: "bargaining with bitcoins is perfectly legal. Microsoft, Expedia, Dell, Overstock and Whole Foods accept bitcoins. "
The party went on to say that prosecutors "targeted" Lord for using Bitcoin without a license, which, according to the party, Lord did not need in Louisiana.
In addition, the PL claimed that Lord submitted a request for federal registration with FinCEN, but that the bureaucrats misplaced their papers. In its press release, the party suggested that FinCEN intentionally misplaced Lord's documentation in order to establish it for processing.
"Every aspect of this case is a farce," the press release said, comparing Lord's case to Ross Ulbricht, who was given a life sentence for operating Silk Road's darknet market.
Lord's case echoes similar stories in other parts of the United States. Most notably, the case of Michell Espinoza in Florida which caused outrage in the Bitcoin community. Espinoza was charged with money laundering for selling $ 1,500 in bitcoins to undercover detectives. Those detectives told Espinoza that they intended to use bitcoin to buy stolen credit card numbers.
Ultimately, Judge Teresa Mary Pooler dismissed the case, following the decision that Bitcoin does not fall into the category of money. Therefore, Espinoza could not receive punishment for using Bitcoin to launder money.
Currently, the exchanges most important of Bitcoin have begun to apply for licenses to operate and avoid any legal demand.