Two users of, Pascal Reid and Michell Espinoza, were arrested last week in what appears to be the first case where bitcoin sellers have been prosecuted under state anti-money laundering and money transmission laws.  These arrests illustrate that under some state money transmitter laws, the direct sale of bitcoin can constitute money transmission—and that selling bitcoin without a money transmitter license can result in criminal charges.  Where a seller of bitcoin knows (or has reason to believe) that the transaction involves proceeds derived from or to be used in furtherance of illegal activity, this could separately result in charges under state anti-money laundering laws. 
Continue Reading Two Florida Users of Arrested for Money Laundering and Unlicensed Money Transmission