The indictment of a bitcoin trader in Colorado, Burton Wagner, for unlicensed money transmission has reportedly been dismissed.
Wagner had reportedly been arrested and faced up to 5 years in prison and a $250,000 fine for conducting a digital currency exchange business without licensing.
While the actual trading of bitcoins, which is conducted by thousands of individual traders, should not fall into the category of money transmission, a court document indicates that Wagner’s business allegedly “involved the transport and transmission of funds that were known to the defendant to have been derived from a criminal offense and were intended to be used to promote and support unlawful activity.”
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U.S. District Court Judge William J Martinez has now reportedly dismissed the case, upon request from the U.S. Department of Justice.
It is not yet clear why the case was dismissed, although Wagner’s supporters have accused the prosecution and federal agents of corruption.
In a blog post apparently written by Wagner’s wife, an attorney, she claims numerous incidents of serious misconduct throughout the proceedings. She says the case has depleted a large portion of their savings, incurring a debt of $95,000 from legal fees and total costs amounting to $284,373. A campaign for their defense fund has reached $12,398 thus far.