Thomas Costanzo and Peter Steimetz were arrested and their respective home searched.
This case was going to test the theory whether bitcoin is money un 18 U.S.C. 1960, however the US governement dropped those 2 charges against Peter and Thomas.
The judge granted the defence motion about dropping the charge of a felon in possession of ammunitions leaving Thomas with 5 counts of Money Laundering.
Both Thomas and Peter are Liberterian activists and leaving by the same code of conduct. Their story was reported by Donna and Ernest Hancock of Freedoms Phoenix.
Peter Steimetz was initialy defended by Brian Klein, chair of the Digital Currency & Ledger Defence Coalition. (same lawyer that defended Anthony Murgio and Burt Wagner) and Thomas Costanzo is being defended by the Phoenix Public Defendant Office.
Peter Steimetz strategy is outlined in Coincenter Blog titled Does 18 U.S.C. §1960 create felony liability for bitcoin businesses and Thomas Costanzo strategy is outlined in the Magistrate Judge Scott non binding document that bitcoin is not money or funds under section 1960 presented during US v. Petix in the Western District of New York.
Peter strategy was successfully used for incidental transactions whereas Thomas strategy is still being tested.
The two cases that can potentially answer that questions are US v. Stetkiw and US v.Rockcoons and maybe US v. Lord if he wins his appeal to change his plea. Since those first two cases are pending, the decision lies with Brad and Morgan.
18 U.S. Code § 1956 - Laundering of monetary instruments:
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Write Thomas a letter:
Central Arizona Detention Center
P.O. Box 6300
Florence, AZ 85132