News law and legislation Bitcoin Mining Companies Lose Judgment To SEC The SEC has won a final judgment against two bitcoin mining companies for defrauding investors.On June 2, 2017, The Securities and Exchange Commission (SEC) won a final judgment against Connecticut-based bitcoin mining companies GAW Miners LLC and ZenMiner LLC, and their founder Homero Joshua Garza.As a consequence, in addition to a $1 million civil penalty for each defendant, the US District Court for the District of Connecticut has ordered both GAW Miners and ZenMiner to pay, jointly and severally, $10,384,099 in “disgorgement and prejudgment interest.” The original SEC complaint, which was filed on December 1, 2015, purported that Garza and his companies conducted a Ponzi scheme to obtain “quick riches” and swindle investors.As per Paul Levenson, director of the SEC’s Boston Regional Office: “As alleged in our complaint, Garza and his companies cloaked their scheme in technological sophistication and jargon, but the fraud was simple at its core: they sold what they did not own, misrepresented what they were selling, and robbed one investor to pay another.” According to the SEC, from August 2014 to December 2014, Garza and his companies sold $20 million worth of unsupported shares in digital mining contracts they called Hashlets, which supposedly bestowed 10,000 investors with shares of computing power that GAW Miners claimed to own and operate.

However, upon further investigation, the SEC found that since “Garza and his companies sold far more computing power than they owned, they owed investors a daily return that was larger than any actual return they were making on their limited mining operations.” Investors were gradually paid “returns” from funds Garza and his companies gained from other investors.bitcoin is heading toward a new highAs a result, many investors failed to recover their full investment and only a few turned a profit.litecoin calcAt the time of publication, GAW Miners and ZenMiner have ceased all business operations and further litigation against Garza by the SEC is pending.bitcoin node js serverETHNews is commited to its Editorial Policy Like what you read?bitcoin miner s9

Follow us on Twitter @ETHNews_ to receive the latest on The Securities and Exchange Commission (SEC), Homero Joshua Garza or other Ethereum law and legislation news.bitcoin difficulty predictionFeds To Target Illicit Crypto-Activity In 2018 Unraveling The “Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017” Delaware Senate Advances “Distributed Ledger Shares” Bill Connecticut Senate Passes Bill Affecting Money Transmitters Dealing in Virtual Currencies IDFPR Finds Digital Currencies Are Not Considered Moneydoacoes bitcoinHome Insights Sweden: "Bitcoin" virtual currency transactions are VAT-exempt, holds CJEU VAT exemption for Bitcoin transactions The Court of Justice of the European Union (CJEU) issued a judgment concluding that exchanges of traditional currency for the “bitcoin” virtual currency (and vice versa) are exempt from value added tax (VAT).bitcoin kaufen visa

The case is: Skatteverket v. Hedqvist, C-264-14 (22 October 2015) Summary The EU VAT Directive includes a provision that EU Member States must exempt transactions relating to “currency, bank notes and coins used as legal tender” from imposition of VAT.litecoin errorA Swedish taxpayer wanted to provide services consisting of the exchange of traditional currency for “bitcoins” and vice versa.mmm world bitcoinBefore entering into these  transactions, the taxpayer requested a preliminary decision from the Swedish authorities as to whether VAT must be paid on the purchase and sale of “bitcoin” virtual currency units.Eventually, the Swedish tax authority (Skatteverket) sought review by the Supreme Administrative Court (Högsta förvaltningsdomstolen) which, in turn, asked the CJEU whether such transactions are subject to VAT and, if so, whether they are exempt from that tax.

As explained in an CJEU release [PDF 159 KB], the CJEU concluded that transactions to exchange traditional currencies for units of “bitcoin” (and vice versa) constitute the supply of services for consideration within the meaning of the VAT Directive, and that those transactions are exempt from VAT under the provision concerning transactions relating to “currency, bank notes and coins used as legal tender.” The KPMG logo and name are trademarks of KPMG International.KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms.KPMG International provides no audit or other client services.Such services are provided solely by member firms in their respective geographic areas.KPMG International and its member firms are legally distinct and separate entities.They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers.

No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.Connect with us Find office locations Social media @ KPMG Request for proposal Submit KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.