French Crypto Trader Jailed in Morocco for Buying Ferrari with Bitcoin
by Thomas Clausi Ordered to Pay a Fine of $3.7 Million
A 21-year-old French crypto trader Thomas Clausi has been convicted in Morocco for purchasing a Ferrari worth $400,000 with Bitcoin and sentenced to 18 months in jail. The Moroccan court has also ordered him to pay a fine of over $3.7 million (€3.4 million).
Background of the Case
According to reports, Clausi purchased the Ferrari from a woman for nearly $440,000 using BTC in April 2021. However, the seller filed a fraud complaint against him in July, when the price of Bitcoin had dropped to just over $31,500. The woman claimed that Clausi had cheated her by using a cryptocurrency that was not stable and could not be regulated by any government or authority.
Investigation and Conviction
Following the complaint, Moroccan authorities opened an investigation into the matter. Clausi was convicted in October 2021 of the crimes of fraud and the “payment with foreign currency on Moroccan territory.” Moroccan law prohibits cryptocurrency trading within the country.
Although the price of Bitcoin rallied to over $40,000 in December, the Moroccan court refused to release Clausi early and ordered him to pay a fine of over $3.7 million (€3.4 million). The court mandated that Clausi compensate the seller with a sum of $4,200 in the local currency.
Lawyer’s Arguments
Clausi’s lawyers tried to secure his early release by presenting arguments in court. In one hearing, they claimed that Clausi had bought expensive Swiss watches using cryptocurrency, and the price of Bitcoin had surged similarly afterward. However, the court did not reduce the sentence.
Conclusion
The case of Clausi brings to light the legal hurdles involved in using cryptocurrency for significant transactions. Due to their decentralized nature and lack of government or authority backing, cryptocurrencies are prone to regulatory risks and price volatility. This highlights the need for clear regulations and legal frameworks for conducting cryptocurrency transactions.
