One of the fundamental aspects of money is that its origins are irrelevant for its use or value (Pecunia non olet), also called fungibility. Simply put, one shouldn’t face charges if someone used ill-gotten funds to buy something from oneself. This principal is now under question in Kenya where three bitcoin traders have gotten into trouble with the law for unknowingly dealing with an alleged criminal.
Emma Kariuki, Stanley Mumo and Timothy Gachehe were brought before the Kenyan federal court in Nairobi on conspiracy to commit a felony charges last week. The three are accused of participation in the theft of 10.2 million Kenyan shillings from a local bank and M-pesa (African mobile payments service operator).
This money was allegedly robbed from I&M Bank and Safaricom Pay (Bill No 517822). Part of it was then sent to the bank accounts of the three defendants.
According to a news report from the country, the Kenyans deny any involvement in the heist. Apparently they have been trading bitcoin for fiat on Localbitcoins for the past five years and the transfers from the alleged bank robber were just another payment for a deal, as far as they knew. They even have the chat transcripts to prove that they sold Ƀ1.2 to Localbitcoins user ‘BADASS20′ in exchange for the stolen loot.
The three posted bail of half Read More Here