California serves cease and desist order to The Bitcoin Foundation

In the letter, sent out on May 30, DFI hasn’t accused the foundation of violating any California laws but, has said that it “may be engaged” in activities such as money transmission without a valid license which according to California laws entails violating organizations to pay up to $1,000 per violation or $1,000 per day and face criminal prosecution. The letter also notes that the California Attorney General “may also institute” the Foundation to Business and Profession code violations which could bring up the fines to up to $2,500 per day / transaction.

The Bitcoin Foundation had 20 days to comply from the date of the letter but, there have been no information whether the foundation has complied with the requirements or not. The Foundation is based out of Seattle and has been established to promote Bitcoin as well as guide the software development efforts related to the virtual currency. The non-profit organization does sell individual and corporate memberships but does not sell or trade in Bitcoins.

Reports of the letter first emerged on Forbes through an article by Jon Matonis who serves as the secretary of the Bitcoin Foundation.

 

CA State Cease and Desist May 30