May 062015
 
[ This is very disturbing. I am a student of cryptocurrencies and propose that cryptocurrencies will be the solution to the coming collapse of the dollar] Simon Black gives continuously good advice. If you are having trouble viewing this email, or you’d like to share this article with your friends, click here May 6, 2015 Sovereign Valley Farm, Chile Well, it was bound to happen sooner or later. Our beloved amigos at the US Financial Crimes Enforcement Network (FinCEN), have just issued the first-ever ‘civil enforcement action’ against a virtual currency. The offending criminal mastermind in this case? Ripple Labs. If you’re not familiar, Ripple is a virtual currency platform that was once the darling of Silicon Valley, attracting top VC firms like Google Ventures and Andreessen Horowitz. Ripple’s technology allows users to conduct financial transactions with one another — sending and receiving payments in cryptocurrencies like Bitcoin, as well as fiat currency. Imagine Bitcoin meets Paypal… and you have the basic idea. As part of its technology, the parent company Ripple Labs also created a native virtual currency called ‘XRP’, which is the second largest in the world after Bitcoin when measured by market capitalization. Because of all of these features, Ripple Labs qualifies as a ‘money service business (MSB)’ according to FinCEN… which makes them subject to all sorts of regulations. At the top of the list is the Bank Secrecy Act (BSA), which, contrary to its name, requires banks and MSBs to betray their customers’ financial secrets to the US government. Specifically, the BSA mandates that all banks and MSBs file ‘suspicious activity reports’ if they “know, suspect, or have reason to suspect” that a transaction of $2,000 or more is ‘suspicious’. And in the age of the USA PATRIOT Act, suspicious transactions are BIG BUSINESS for Uncle Sam. Last year a record 2.4 MILLION suspicious activity reports were filed. That’s a 40% increase from 2013’s record year of 1.7 million. As you can imagine, Ripple Labs failed to register with FinCEN as an MSB, nor did it submit suspicious activity reports. In its complaint, FinCEN describes several of the oooooh-so-nefarious violations. According to FinCEN, “In January 2014, a Malaysian-based customer sought to purchase XRP from [Ripple Labs], indicating that he wanted to use a personal bank account for a business purpose.” HOLY JIHAD BATMAN!!!! Someone wanted to use a personal bank account for business purposes?!?! NUKE THE (more…)