Early Bitcoin User Interviewed By Federal Officers 92
MrBingoBoingo (3481277) writes Recently a Bitcoin user reports being interviewed over their past use of a now defunct exchange service by agents from the FBI and Treasury Department. This encounter raises concerns that earlier Bitcoin users who entered the space inocuously and without ties to Dark Markets or The Silk Road might need to prepare for Law Enforcement questioning about their early Bitcoin related activities.
NEWS: Law enforcement officers doing actual job! (Score:4, Interesting)
Let's not overstate this. The account given by Bingo is a good one, and on the facts it shows two law enforcement officers just doing their job: gathering background information, and they're doing it in a way to minimise the hassle for the ordinary member of public they're interviewing. Bingo mentions no powerplays beyond them identifying themselves as LEOs.
And doing the research how Silk Road grew out of the early BitCoin scene (or if it even did) is a legitimate avenue of inquiry.
I am not a fan of the bullies that populate far too many police forces, so this is a welcome change of pace.
Every US based bitcoin user is going to ... (Score:4, Interesting)
Seriously, this is no joke. As an asset you will be expected to declare a gain or loss on the coins you used to purchase that cup of coffee. The gain or loss with respect to the change of value between the day you received those coins and the day you used them in the purchase.
This is why it is incredibly important whether the IRS considers bitcoins to be a currency or an asset. As an asset the reporting requirements would seem to become similar to that of buying, selling and trading stocks. Its not at all like spending dollars.
Re:NEWS: Law enforcement officers doing actual job (Score:2, Interesting)
Yeah. And if I were just a small-time user of some bitcoin service, my "preparing" for questioning by law enforcement would be to get ready to tell them to get stuffed if they got pushy.
So says an armchair warrior on the internet. In reality at the first suggestion of an IRS audit you'll be copying every log file you have or can download from an exchange onto a memory stick for them. You know why law enforcement gets pushy, because it works.
Only fair (Score:0, Interesting)
When you participate in a pyramid scheme, expect to be questioned by law enforcement. And if you joined early you're probably more of a perpetrator than a victim, and the interesting question is how you lured other people into participating.
Re:Bitcoin users didn't all start exchange service (Score:4, Interesting)
You have the right to remain silent.
Anything you say or do may be held against you.