zlacker

>>mikeyo+(OP)
So, hypothetically, if these guys were to completely cash out these coins somehow, and then pay tax to the IRS, would they be immune from tax fraud and IRS involvement? I know similar things happen with stolen property and illegal drugs (Sullivan v. United States).

>>Severi+Fv
Yes if they successfully laundered it and paid taxes they would have no liability.

>>vmcept+Ax
Probably liability to the Fed, but not local prosecutors for whatever locality Bitfinex was in then?

Are bitcoins recognized as personal property, IP, none, or something of a blend in smaller jurisdictions? I have no idea.

>>Severi+py
they wouldn’t know who to hold accountable either. The point is that nobody would.

In my model the only liability would occur from the normal day to day business operation that you earn the successfully laundered proceeds from. like one of your actual clients sue you because you breached the SLA because you forgot you’re actually running a legitimate business.