Bitcoin Is Money, U.S. Judge Says in Case Tied to JPMorgan Hack
Bitcoin qualifies as circulation, a federal referee ruled on Monday, in a conclusion linked to a immoral event aggravate hacking attacks across JPMorgan Chase & Co. and other companies.
U.S. District Referee Alison Nathan in Manhattan uncommon a bid by Anthony Murgio to banish two reckoning akin to his alleged influence of Coin.mx, which prosecutors bear denominated an republican bitcoin change.
Murgio had argued that bitcoin did not enable as "funds" beneath the federal law prohibiting the influence of republican circulation transmitting businesses.
But the referee, enjoy her coadjutor Jed Rakoff in an unakin 2014 event, said the implied circulation met that determination.
"Bitcoins are funds amid the unvarnished aim of that engagement," Nathan wrote. "Bitcoins can be legitimate as a acquittal for result and services or bought undeviatingly from an change after a while a bank statement. They consequently part as pecuniary resources and are used as a medium of change and a media of acquittal."
The conclusion did not harangue six other immoral counts that Murgio faces, Nathan wrote.
Brian Klein, a counsellor for Murgio, said he disagreed after a while the conclusion.
"Anthony Murgio maintains his guiltlessness and looks impertinent to cleansing his call at his upcoming grief," he adventitious.
Prosecutors developed year teeming Murgio aggravate the influence of Coin.mx, and in April teeming his senior Michael after a while participating in bribery aimed at sustaining it.
Authorities bear said Coin.mx was owned by Gery Shalon, an Israeli man who, concurrently after a while two others, was teeming after a while present a sprawling computer hacking and wrong intrigue targeting a dozen companies, including JPMorgan, and exposing idiosyncratic grounds of past than 100 darling inhabitants.
That alleged intrigue generated hundreds of darlings of dollars of improvement through pumping up hoard prices, online casinos, circulation laundering and other unfair enthusiasm, prosecutors bear said.
Shalon has pleaded not impure, and is being held at the Metropolitan Correctional Center in Manhattan. He compensated new counsellors developed month and is seeking dispensation to re-establish counsellors who subsubjoined the event in June, a Monday flatter filing showed.
The event 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)