Judge: Virtual Bitcoins Are Real Currency

by Karl Utermohlen | August 8, 2013 3:07 pm

Magistrate Judge Amoz Mazzant has made a ruling that Bitcoins can be used as money despite the claims of Bitcoin Savings & Trust regulator Trendon Shavers.

Mazzant said that, in accordance with U.S. law, Bitcoins fall under the definition of currency because they can be used the same way that conventional currencies are used, according to The Globe and Mail[1].

The judge continued by saying that Bitcoins can be exchanged for other currencies, and they can also be used to purchase goods or services.

Shavers is facing accusations from the Securities and Exchange Commission of running a Ponzi scheme through BTCST that allegedly netted him a profit of about $4.6 million in Bitcoins and caused investors to lose more than $23 million.

According to Mazzant, Shavers had previously stated that Bitcoins should not be considered to be securities because they are not “part of anything regulated by the U.S.”

  1. according to The Globe and Mail: http://www.theglobeandmail.com/report-on-business/top-business-stories/groupon-shares-surge-not-such-a-bargain-any-longer/article13654973/

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