Law360, New York ( August 8, 2016, 3:27 PM EDT) -- In February 2014, Michell Espinoza and Pascal Reid went to a Miami Beach motel as part of a plan to sell up to $30,000 worth of bitcoins — the "cryptocurrency" that is really just very strong, uniquely identifiable, freely transferable cryptography and was then selling for $473 each — to two men they had met online through the site LocalBitcoins.com. The two men, who were actually part of a joint Miami Beach Police-U.S. Secret Service undercover task force, had told Espinoza and Reid they had acquired their money through exploitation of a point-of-sale hack on a large retailer and its credit card customers, and wanted to use the bitcoins to purchase more illegal credit card data online. Arrest warrants for dealing in "electronic currency with no central authority" were drafted; officers entered the motel room with guns drawn, yelling "Police! Get down!" and, in separate events, Espinoza and Reid were cuffed and charged with violation of Florida's Money Laundering Act and with operating an unlicensed money transmitting business....