The whole thing is still shocking. I don't know what BurtW did or didn't do but I'm quite surprised that if his accused crime is selling bitcoins without a license that he doesn't just owe fees or taxes to the IRS or something. Why arrested?
AFAIK, the allegation is that he agreed to sell coins at higher than market value to an undercover agent who claimed to use it for illegal purpose. Selling coins knowingly that would be used for illegal purpose is probably the crime here. I actually read it somewhere in this long thread. Could not find the link though...