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Submission + - Massachusetts SWAT teams claim they're private corporations, immune to oversight (washingtonpost.com)

thermowax writes: Massachusetts SWAT teams claim they’re private corporations, immune from open records laws. Kind of amusing this is in arch-Liberal Mass, but enough editorializing: I don't even know where to start here. No FOIA demands, no investigations, or reviews... the police state gets more real on a daily basis.

Submission + - Bitcoin Securities Issuer Settles with SEC (thedrinkingrecord.com)

MrBingoBoingo writes: The United States Securities and Exchange Commission has extracted a Settlement from Erik Voorhees that consists of $15,843.98 in profits and a penalty of $35,000 for the high crime of having been involved in financing two offerings with Bitcoin. If you read the Security and Exchange Commission's actual filing you can see that all of the fines and settlements relate to FeedZeBirds with any actions relating to S.DICE on MPEx consisting of a strong finger wag and stern look. With the light assessment in this case, it seems that the SEC's ability to act in mature Bitcoin markets like MPEx may be limited unless they work to build cooperative relationships with those markets.

Comment Weasely sentence in the article (Score 3, Insightful) 134

"It is unclear how Japanese law would treat any such diversion of customer funds as Mt. Gox was not regulated as a financial institution. As a private firm in which Karpeles held an 88 percent stake with no declared debt, Mt. Gox was under no obligation to share any details on its finances."

The lack of regulation means that they cannot prosecute the *lack of disclosure* but the article makes it sound like it implies they cannot prosecute the fund diversion itself. Of course you can, it's embezzlement, there are laws on the book against it, and no you don't need to be "regulated" for these laws to apply.

Financial regulation is something that can make such frauds harder to perpetrate, it's not what makes is illegal. Sheesh.

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