Doctor Bitcoin’s Wild Ride: The Federal Crime of P2P Transactions

Estimated read time 3 min read

The Crypto Conundrum

Mark Alexander Hopkins, known in the digital realm as Doctor Bitcoin or by his handle Rizzn, has found himself in a bit of a pickle. After announcing on social media about his upcoming sentence, he claimed that engaging in peer-to-peer (P2P) Bitcoin transactions is akin to a federal crime. Sounds like a fun party, right? Grab your popcorn!

Legal Limbo

Hopkins faces a sentence ranging from 6 to 15 months in a Texas federal correctional facility for allegedly running a cryptocurrency business sans the needed licenses. It seems he ran afoul of the Financial Crimes Enforcement Network (FinCEN), which pulled a fast one with a 2019 interpretation of a law that was really just waiting in the corners since 1992. Specifically, 18 U.S.C. 1960, which was designed to regulate money transmitting businesses, is now apparently snaring unsuspecting crypto enthusiasts like our hero Rizzn.

The Fallout of Friendship

Having joined the crypto craze back in 2011, Rizzn claims he was merely one of many over-the-counter (OTC) traders, trying to navigate the murky waters of crypto exchanging.

But lo and behold, by merely assisting someone who turned out to be involved in a money-laundering scheme via illegal lotteries, Rizzn found himself on the FBI’s radar. Yes, quite the plot twist! He recounted the time he was visited by 15 armed agents, no less. Apparently, they were here for the Bitcoin, not the snacks.

“I cooperated fully with the 15 armed FBI agents who raided my home in Oct of 2019.”

Defense of a “N nobody”

In a world filled with big names playing in the crypto sandbox, Rizzn was adamant about his innocence. “Here’s the thing that makes this important to pay attention to and resolve: I’m a nobody,” he clarified. Luckily for him, this little detail didn’t stop him from diving deep into regulatory matters before heading off to cozy federal accommodations.

Call for Clarity

Before his incarceration, Rizzn mounted a campaign for clear regulatory practices between state and federal laws regarding crypto transactions. He astutely pointed out the conflicting views on P2P exchanges: while some states like Delaware and Wyoming are waving the crypto flag, the feds are pulling the other way, manufacturing a slew of crypto criminals. “There needs to be a) clarity on how to be as compliant as possible and b) ideally a rollback of the overreaching guidance in the first place,” he stated.

In a world where users encounter confusing regulations and different interpretations of the same laws, it’s safe to say that the gray area of P2P transactions in crypto needs some serious daylight. It could save many from going offline permanently — or at least for a stretch of months.

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