Apparently for the first time, state laws are being wielded against heavy Bitcoin traders. Florida prosecutors have charged three men, saying that their use of a site called localbitcoins.com violates laws against unlicensed money transmitters, according to a report in the Krebs on Security blog. Krebs quotes UC Berkeley researcher Nicholas Weaver as saying he’s unaware of any other case where state authorities took legal action against a Bitcoin vendor. One user, named Michelhack, claimed to have transferred more than 150 bitcoins (around $110,000 in today’s value) over the past six months.

A law enforcement officer contacted Michelhack and said he wanted to use bitcoins to purchase stolen credit cards online.

After one transaction, he set up a much larger deal, converting $30,000 in cash into bitcoins.

Now prosecutors say Michelhack is 30-year-old Michell Abner Espinoza, of Miami Beach.     

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