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...
Now, that makes sense:
BW: Here, yea! Here, yea! Here, yea! I'm selling BTC at X dollars.
Anon: Would you consider selling BTC for X + Y per, for I need them badly to make some illegal purchases.
BW: Okay, but only this once. I don't want it to get out that I'm selling over the average spot.
Anon: You can trust me.
BW: How much worth do you want?
Anon: Well, since my boss only allocated $100 toward this sting, I'll take that amount worth.
BW: Fine, but remember, mums the word.
Anon: