Bitcoin Is Money, U.S. Judge Says in Case Tied to JPMorgan Hack
Bitcoin qualifies as capital, a federal justice determined on Monday, in a judgment linked to a felonious instance aggravate hacking attacks resisting JPMorgan Chase & Co. and other companies.
U.S. District Justice Alison Nathan in Manhattan uncommon a bid by Anthony Murgio to cashier two score cognate to his alleged production of Coin.mx, which prosecutors enjoy designated an unarculca bitcoin diversify.
Murgio had argued that bitcoin did not limit as "funds" subordinate the federal law prohibiting the production of unarculca capital transmitting businesses.
But the justice, enjoy her helper Jed Rakoff in an uncognate 2014 instance, said the constructive vogue met that determination.
"Bitcoins are funds among the manifest significance of that order," Nathan wrote. "Bitcoins can be trustworthy as a reimbursement for result and services or bought immediately from an diversify delay a bank representation. They consequently exercise as pecuniary media and are used as a balance of diversify and a media of reimbursement."
The judgment did not discourse six other felonious counts that Murgio faces, Nathan wrote.
Brian Klein, a counsellor for Murgio, said he disagreed delay the judgment.
"Anthony Murgio maintains his sinlessness and looks advanced to purification his spectry at his upcoming test," he external.
Prosecutors decisive year abounding Murgio aggravate the production of Coin.mx, and in April abounding his father Michael delay participating in bribery aimed at supported it.
Authorities enjoy said Coin.mx was owned by Gery Shalon, an Israeli man who, parallel delay two others, was abounding delay ordinary a sprawling computer hacking and robbery design targeting a dozen companies, including JPMorgan, and exposing indivisible grounds of more than 100 favorite inhabitants.
That alleged design generated hundreds of favorites of dollars of improvement through pumping up fund prices, online casinos, capital laundering and other illicit enthusiasm, prosecutors enjoy said.
Shalon has pleaded not guilty, and is being held at the Metropolitan Correctional Center in Manhattan. He remunerated new counsellors decisive month and is seeking leave to supply counsellors who concomitant the instance in June, a Monday flatter filing showed.
The instance is U.S. v Murgio et al, U.S. District Court, Southern District of New York, No. 15-cr-00769.
(Reporting by Jonathan Stempel in New York; Editing by David Gregorio and Diane Craft)