I think he was selling btc for other very traceable and identity-linked forms of digital money (paypal, liberty reserve, western union, something like that). Th

I think he was selling btc for other very traceable and identity-linked forms of digital money (paypal, liberty reserve, western union, something like that). The issue was that he was operating as a money processor without following the mandatory guidelines that try to prevent laundering, etc. You can google the earlier arrest for more information on it, there are some juicy transcripts.