US judge rules: Bitcoin is not money because it cannot be hidden under a mattress

Summary: A Florida judge on Monday dismissed charges of money laundering against a Bitcoin seller who was indicted in 2014 for illegal money transmission and money laundering. Pooler wrote in his ruling that the judge was not an economic expert. But it is clear that even someone with very limited knowledge in this area understands that Bitcoin still has a long way to go before it can become a monetary equivalent. "

A Florida judge on Monday dismissed money laundering charges against a bitcoin seller who was indicted in 2014 for illegal money transmission and money laundering.

Bitcoin seller Michell Espinoza was charged with three felony counts related to money laundering in 2014, but what helped him clear his name was testimony from an economics professor a few weeks ago.

Charles Evans, a professor at Barry University in Florida, gave evidence at a hearing in May, saying that "Bitcoin is more like a poker chip that people are willing to buy from you."

Florida judge Teresa Mary Pooler said Bitcoin does not constitute "tangible wealth" and "cannot be hidden under a mattress like cash and gold bars."

Pooler added that Bitcoin is not covered by government law and is not backed by any banks.

“The judge is not an expert in economics. But it is clear that even someone with very limited knowledge in this area understands that Bitcoin still has a long way to go before it can become a monetary equivalent,” Pleul wrote in his ruling.

After selling $1,500 worth of bitcoin to agents, Michell Espinoza, 33, was charged, claiming they intended to use the digital currency to buy stolen credit card numbers. However, Judge Pryor said the case was based on legal grounds that were too "murky."

While Monday’s ruling is a relief for Espinoza, it’s still unclear what will happen next with regard to the regulation of bitcoin. States are still grappling with the issue, and at the federal level, regulation has stalled.

Observers believe that the ruling shows that Florida statutes do not account for Bitcoin and digital currencies, a gap that may eventually push Florida and even other states to formally legislate on digital currencies.