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California Sends a Cease and Desist Order To the Bitcoin Foundation

Posted by samzenpus on from the pay-up dept.

An anonymous reader writes in with bad news for the Bitcoin Foundation. "California's Department of Financial Institutions has issued a cease and desist letter to the Bitcoin Foundation for "allegedly engaging in the business of money transmission without a license or proper authorization," according to Forbes. The news comes after Bitcoin held its "Future of Payments" conference in San Jose last month. If found in violation, penalties range from $1,000 to $2,500 per violation per day plus criminal prosecution (which could lead to more fines and possibly imprisonment). Under federal law, it's also a felony "to engage in the business of money transmission without the appropriate state license or failure to register with the US Treasury Department," according to Forbes. Penalties under that law could be up to five years in prison and a $250,000 fine."

10 of 396 comments (clear)

  1. Penalties/fines by Sooner+Boomer · · Score: 5, Funny

    Can they pay those with bitcoin?

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    Chaos maximizes locally around me.
    1. Re:Penalties/fines by Anonymous Coward · · Score: 5, Funny

      All your bitcoin are belong to US

  2. Re:Uh by gl4ss · · Score: 3, Funny

    next up: php conference getting sued for security flaws in websites implemented in php.

    I don't think they quite thought it through that bitcoin foundation can not cease bitcoin transfers.

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    world was created 5 seconds before this post as it is.
  3. Re:Uh by davester666 · · Score: 5, Funny

    And once that happens...California's problems are finally solved.

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    Sleep your way to a whiter smile...date a dentist!
  4. Re:Uh by Anonymous Coward · · Score: 2, Funny

    Fuck, I'm missing a moderation choice.

    That's a "-1/+1 Tried to be snippy smart-ass but actually told good honest truths inadvertently."

    AC not to undo other moderations.

  5. Re:So that's it then by H0p313ss · · Score: 4, Funny

    Remember what happened to Jesus after he kicked around the Money Changers?

    I didn't expect the Spanish Inquisition!

    Oops, wrong script, I'll come in again...

    What have the Romans ever done for us eh?

    --
    XML is a known as a key material required to create SMD: Software of Mass Destruction
  6. Re:Fear... and Control... by _4rp4n3t · · Score: 3, Funny

    Can I have your drugs?

    Dunno - got any Bitcoins to pay for them with?

  7. Monopoly.. by DeBaas · · Score: 3, Funny

    maybe they'll go after Parker Brothers/Hasbro next

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  8. Re:When did bitcoin(tm) become a currency by rossdee · · Score: 4, Funny

    "There are lots of commodities that trade so far above their intrinsic value that they are fiat."

    Like Ferraris ? I think the company is still owned by FIAT

  9. Re:Uh by nitehawk214 · · Score: 4, Funny

    It's Slashdot, the truth tends to piss people off around here.

    Your statement pisses me off.

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    I'm a good cook. I'm a fantastic eater. - Steven Brust