APRIL 3 DIGEST: Spain Makes First Bitcoin Related Arrest, Legal Fight Unfolds Involving Ripple, Bitstamp and Jed McCaleb

Russia’s proposal to ban Bitcoin is expected to pass in August, Ripple, Bitstamp and Jed McCaleb are involved in a US$1 million legal fight, and more top stories for April 3.

Spain Makes First Bitcoin Related Arrest

On Monday, Spanish authorities have made the country's first Bitcoin related arrest. The name of the accused is Aythami Jose M.P., a Canary Islands resident who was detained with charges pending against him for the theft of at least 32.35 BTC.

Aythami managed to pull of his operation by advertising himself as the CEO of Spanish website Cloud Trading & Devs, where he claimed his company had developed its own trading algorithm, which could guarantee potentials clients a return of at least 65% on top of their investment.

Ripple, Bitstamp and Jed McCaleb Involved in US$1 Million Legal Fight

Bitstamp has initiated legal action over more than US$1 million in disputed funds related to the sale of nearly 100 million XRP last month. The disputed funds were used by Ripple Labs to purchase the XRP put up for sale through an account allegedly controlled by founder Jed McCaleb.

According to the filing, however, Ripple Labs told Bitstamp that the sale was in violation of a contract between the company and McCaleb. Ripple Labs and Jacob Stephenson, McCaleb's cousin, have since laid claim to the money, with Ripple Labs demanding the release of the funds from Bitstamp. Bitstamp has therefore now asked the court to settle the claims dispute.

Russia’s Bitcoin Ban Expected in August; Expert Recommends Businesses ‘Get Out’

With the Bitcoin Conference Russia currently underway in Moscow, more details about the controversial proposal to ban cryptocurrency in Russia have emerged, with the likelihood of the law being passed in August of this year. Artem Tolkachev, a managing partner from the legal firm Tolkachev and Partners, therefore recommended businesses and companies involved with cryptocurrency to “get out of Russian jurisdiction.”                   

Russia’s Bitcoin Ban Expected in August; Expert Recommends Businesses ‘Get Out’                                                                                

Hong Kong cryptocurrency associations warn against fake websites

Two of Hong Kong’s cryptocurrency related associations have banded together to warn investors about fraudulent websites and other scams. The Dash Foundation (known until last week as The Darkcoin Foundation) and Bitcoin Hong Kong have issued a joint statement warning cryptocurrency users about malicious schemes both in Hong Kong and overseas.

Fernando Gutierrez, vice-chairman of The Dash Foundation said:

“The only way to avoid scams is for investors to take responsibility and do their research [...]. We have been working with [Bitcoin] Hong Kong to report the scams we