4 ms·

Under US forfeiture laws proceeds is defined as the following: (A) In cases involving illegal goods, illegal services, unlawful activities, and telemarketing a

by shiado 6y ago

Under US forfeiture laws proceeds is defined as the following: (A) In cases involving illegal goods, illegal services, unlawful activities, and telemarketing and health care fraud schemes, the term “proceeds” means property of any kind obtained directly or indirectly, as the result of the commission of the offense giving rise to forfeiture, and any property traceable thereto, and is not limited to the net gain or profit realized from the offense. I suppose the BTC itself would be covered under "property of any kind obtained directly or indirectly, as the result of the commission of the offense giving rise to forfeiture" And the BCH split coins would fall under "and any property traceable thereto, and is not limited to the net gain or profit realized from the offense." It would appear that such a seizure is legit as 'traceable' is infinitely flexible. But I'm not a lawyer so don't take my word for it.

gamblor956 6y ago
Yes, that's generally how the tracing works. In one extreme case (at the state level), prosecutor successfully seized the house of the parent of a defendant, where the defendant had made one gift mortgage payment on behalf of their parents, who had timely paid the mortgage for several years and were not at any risk of being unable to pay their mortgage.
- shiado 6y ago
  And with a total lack of fungibility things could get even crazier with crypto. Imagine losing your house because you cashed out some BTC you got off of some guy you don't know for cash that Chainalysis says is linked to the Silk Road five transactions back so it is the proceeds of crime.
  - gamblor956 6y ago
    Normally, traceability doesn't extend that far (since generally unless you're the government you don't have the ability to determine the provenance of cash) but with blockchains, you can know if the money you receive is tainted, so it's possible that some jurisdictions might extend tracing to completely innocent parties.

by shiado 6y ago

gamblor956 6y ago

Yes, that's generally how the tracing works. In one extreme case (at the state level), prosecutor successfully seized the house of the parent of a defendant, where the defendant had made one gift mortgage payment on behalf of their parents, who had timely paid the mortgage for several years and were not at any risk of being unable to pay their mortgage.

shiado 6y ago
And with a total lack of fungibility things could get even crazier with crypto. Imagine losing your house because you cashed out some BTC you got off of some guy you don't know for cash that Chainalysis says is linked to the Silk Road five transactions back so it is the proceeds of crime.
- gamblor956 6y ago
  Normally, traceability doesn't extend that far (since generally unless you're the government you don't have the ability to determine the provenance of cash) but with blockchains, you can know if the money you receive is tainted, so it's possible that some jurisdictions might extend tracing to completely innocent parties.