Is Crypto the same as any foreign currency? A foreign currency exchange is nothing new. On the other hand cryptographic currency (&quot;crypto&quot; i.e. Bitcoin) is relatively new, as are their exchanges. https://abcnews.go.com/Business/wireStory/sec-brings-charges-cryptocurrency-trading-platform-coinbase-99866462 If crypto is a currency, Why not regulate it as a currency and not a security?
Is Crypto the same as any foreign currency? No. Crypto is generally treated as a commodity and capital asset, like gold, and not like a currency, under U.S. tax law. Other jurisdictions vary in how they treat cryptocurrency legally and for tax purposes. Bitcoin (unlike other cryptocurrencies) is also regulated on a non-tax basis as a commodity by the Commodity Futures Trading Commission. Other cryptocurrencies are regulated in the U.S. as securities by the Securities and Exchange Commission. Why not regulate it as a currency and not a security? Cyptocurrencies are not very much like currencies which is why they are not regulated in that way. The basis for treating it more like a security and less like a foreign currency for securities fraud/disclosure purposes is that it is a better fit to securities law which is designed for more varied legal arrangements than foreign currency laws. Foreign currencies are backed by the full faith and credit of sovereign countries (which are non-profit entities). Also, foreign currencies are transparently based upon laws that are almost always a matter of public record and relatively straightforward. And, of course, banks and money changing firms trading in foreign currencies are subject to significant tax and financial regulation of their own, although not as securities. In contrast, like other securities, cryptocurrencies are private creatures of contract created by entities with shareholders which do not have uniform legal properties. New &quot;coins&quot; can be created in different ways in different crypto currencies, and the relationship between the cryptocurrency to the non-crypto financial markets varies. Securities-like disclosures are necessary for members of the public dealing with it to understand the risks, benefits, and mechanics of the cryptocurrency in question. The U.S. Securities And Exchange position and its basis is suggested by the ABC News story linked in the question, which states: Coinbase has been targeted by U.S. regulators in a new lawsuit Tuesday that alleges the cryptocurrency platform is operating as an unregistered securities platform and brokerage service. The lawsuit from the Securities and Exchange Commission comes only a day after it filed charges against Binance, the world's largest crypto exchange, and its founder Changpeng Zhao are accused of misusing investor funds, operating as an unregistered exchange and violating a slew of U.S. securities laws. Coinbase shares plunged nearly 15% early Tuesday. In its complaint, the SEC said Coinbase made billions acting as the middle man for cryptocurrency buyers and sellers but did not give investors lawful protections while acting as a broker. “Coinbase has for years defied the regulatory structures and evaded the disclosure requirements that Congress and the SEC have constructed for the protection of the national securities markets and investors,” the SEC said in its complaint, which was filed in U.S. District Court for the Southern District of New York. It seeks injunctive relief, disgorgement of ill-gotten gains plus interest, penalties, and other equitable relief.
Yes Companies can own companies - that’s what subsidiaries are. On a practical level, you know this is true because you actually have an example. Companies House would not have allowed its registration (barring error) if it was illegal. Why can’t it open a bank account? Banks (or any other business) can choose who they will and won’t do business with. Unless it’s discrimination on the basis of a protected characteristic, it’s not illegal. Since juridical persons don’t have protected characteristics (apart from nationality) it’s virtually impossible to illegally discriminate against them.
If you are charged under the laws of Estonia (or Australia or Thailand or the UK) then the laws of the USA have no relevance whatsoever. It makes no difference if you are a US citizen, if the alleged crime happened in the USA or was perpetrated against the USA. If nation X has jurisdiction then you are tried under the laws of nation X. That is what sovereignty means. As to your specific example, Facebook does business in Estonia, therefore they are subject to Estonian law, as a US corporation they are also subject to US law and the law of every other jurisdiction they operate in (see why they need big legal departments?). If a legitimate Estonian warrant was served on them to disclose metadata or anything else then they are legally obliged to do so or be in contempt of court. Oh, and by the way, the first amendment right to free speech does not give you a right to anonymous free speech.
The tricky bit from a GDPR standpoint is that the US has a law that says a US-based company must hand over data to US government agencies even if the data is stored outside the US. This is US specific and a case where the US government gives itself jurisdiction outside the US but the EU can't directly do anything against it (outside of international negotiations). As you noticed this means if you store data at a US data processor there is no real difference whether the data is physically stored in the US or the EU. So to avoid transferring EU consumer data to the US several steps are needed. First the servers have to be physically located in the EU and second the company needs to be non-US based, EU based seems the obvious choice. AFAIK constructions of a US-based company creating a fully owned EU-based subsidary are currently used to achieve the second part. Whether this is sufficient may have to be decided in court.
Update (12/2/16) - Just received the following confirmation from Apple Export Compliance: The [redacted] app presently uploaded into your account CAN BE legally released to US and Canada only, it will not be necessary to go through Export Regulations. They have also rephrased the question "Does your app qualify for any of the exemptions...?" to the following: Does your app meet any of the following: (a) Qualifies for one or more exemptions provided under category 5 part 2, (b) Use of encryption is limited to encryption within the operating system (iOS or macOS), (c) Only makes call(s) over HTTPS, (d) App is made available only in the U.S. and/or Canada. Update (12/1/16) - In addition to the research below, a list of "Sample Scenarios" are given in iTunes Connect Resources and Help, one of which states: A developer chooses to release his app in the U.S. and Canada only. -- No U.S. CCATS or ERN is required. No France Import Declaration is required. The following statement (mentioned earlier in the same page) should also be taken into consideration regarding exemptions: All liabilities associated with misinterpretation of the export regulations or claiming exemption inaccurately are borne by owners and developers of the apps. So it appears the correct answer is likely not: N.B. to Note 3 (Cryptography Note): You must submit a classification request or self classification report to BIS for mass market encryption commodities and software eligible for the Cryptography Note employing a key length greater than 64 bits for the symmetric algorithm ... in accordance with the requirements of § 740.17(b) of the EAR in order to be released from the “EI” and “NS” controls of ECCN 5A002 or 5D002. Furthermore, under Note 4: Category 5 - Part 2 does not apply to items incorporating or using "cryptography" and meeting all of the following: a. The primary function or set of functions is not any of the following: “Information security”; A computer, including operating systems, parts and components therefor; Sending, receiving or storing information (except in support of entertainment, mass commercial broadcasts, digital rights management or medical records management); or Networking (includes operation, administration, management and provisioning); b. The cryptographic functionality is limited to supporting their primary function or set of functions; and c. When necessary, details of the items are accessible and will be provided, upon request, to the appropriate authority in the exporter's country in order to ascertain compliance with conditions described in paragraphs a. and b. above. I suppose there could be clarification under this note, but if I understand it correctly, an iOS app having the sole purpose of performing symmetric encryption with keys greater than 56 bits would have the primary function of: "Information security" Being "a computer" Barring clarification on these points that would qualify for exemption, NLR, etc. self-classification would likely be [any of the following]: 5D002.a.1.a (software) - Designed or modified to use "cryptography" employing digital techniques performing any cryptographic function other than authentication, digital signature, or execution of copy-protected "software," and having ... A "symmetric algorithm" employing a key length in excess of 56-bits Encryption registration may have also been required prior to September 20, 2016 (see linked reference). "Companies no longer are required to submit an encryption registration to BIS before self-classifying and exporting certain encryption items..." (Wiley Rein LLP) References: Commerce Control List: Category 5 Part 2 (Cryptographic "Information Security") - BIS Export Compliance - f5 License Exception ENC (740.17) - BIS Information Security Updates (September 20, 2016) BIS Publishes New Encryption Rule - Wiley Rein LLP
99.999% of people treat bank deposits as bailment. This is not borne out by the evidence. The evidence is that most people do not conceptualize their daily interactions and relationships in legal categories like &quot;contract,&quot; &quot;bailment,&quot; etc. Most people do not turn their minds to the web of risks and rights that they operate in day to day. But under FDIC rules, only the first 0.25 million is bailment. This is also not true. No monetary deposit is a bailment. The concept of bailment is limited to tangible property (e.g. the contents of a safe-deposit box). This is well-established common-law principle, but see generally Dickerson, &quot;Bailor Beware&quot; (1988). The remainder of your question asks for multiple opinions, each of which appears off-topic here, so I have tried to correct misunderstandings in your premise.
It is hard to know with certainty why this distinction was made in this case. There is a fair amount of gamesmanship that goes into having a device classified as an administrative matter in dealings with a regulatory agency, since the details are technical and the language of the regulations is subject to differing interpretations. This is why attorneys in this area get paid the big bucks. I can't tell you precisely what went into each determination but the relevant regulations restated below, at least, gives you a sense of what the issues that can be fought over in those discussions can be. I suspect that the arguments probably involve whether or not evidence was presented to the relevant regulators by the manufacturers that particular items were or were not sold as &quot;mass market encryption commodities&quot;, perhaps based upon sales data or information about how the different items are marketed. It could also be that the regulators a exercising discretion to &quot;flex their regulatory muscles&quot; less aggressively in the case of E.U. source products that could be sold directly outside of U.S. distributions channels anyway, entirely avoiding interfacing with the U..S. export control regime, in order to encourage commerce to be routed through U.S. companies instead. In contrast, the Japanese manufacturer may not have had the same direct distribution network available to it, or may not have had someone as skilled to advocate for it on this basis in the regulatory process. Relevant Legal Authority The legal authority that pertains to this question is set forth below, but even after reading all of it, it isn't manifestly clear why there is a difference so we are left to read between the lines as I have done above. The primary regulation is found here (the first seven pages are the ones applicable to this question). The introductory material for Category 5A002 states: Related Controls: (1) ECCN 5A002.a controls “components” providing the means or functions necessary for “information security.” All such “components” are presumptively “specially designed” and controlled by 5A002.a. (2) See USML Categories XI (including XI(b)) and XIII(b) (including XIII(b)(2)) for controls on systems, equipment, and components described in 5A002.d or .e that are subject to the ITAR. (3) For “satellite navigation system” receiving equipment containing or employing decryption see 7A005, and for related decryption “software” and “technology” see 7D005 and 7E001. (4) Noting that items may be controlled elsewhere on the CCL, examples of items not controlled by ECCN 5A002.a.4 include the following: (a) An automobile where the only ‘cryptography for data confidentiality’ having a ‘described security algorithm’ is performed by a Category 5 – Part 2 Note 3 eligible mobile telephone that is built into the car. In this case, secure phone communications support a non-primary function of the automobile but the mobile telephone (equipment), as a standalone item, is not controlled by ECCN 5A002 because it is excluded by the Cryptography Note (Note 3) (See ECCN 5A992.c). (b) An exercise bike with an embedded Category 5 – Part 2 Note 3 eligible web browser, where the only controlled cryptography is performed by the web browser. In this case, secure web browsing supports a non-primary function of the exercise bike but the web browser (“software”), as a standalone item, is not controlled by ECCN 5D002 because it is excluded by the Cryptography Note (Note 3) (See ECCN 5D992.c). (5) After classification or self-classification in accordance with § 740.17(b) of the EAR, mass market encryption commodities that meet eligibility requirements are released from “EI” and “NS” controls. These commodities are designated 5A992.c. Category 5A992.c, meanwhile, means &quot;Equipment not controlled by 5A002&quot; because it is one of the &quot;Commodities classified as mass market encryption commodities in accordance with § 740.17(b) of the EAR.&quot; This states: (b) Classification request or self-classification. For certain products described in paragraph (b)(1) of this section that are self-classified, a self-classification report in accordance with paragraph (e)(3) of this section is required from specified exporters, reexporters and transferors; for products described in paragraph (b)(1) of this section that are classified by BIS via a CCATS, a self-classification report is not required. For products described in paragraphs (b)(2) and (3) of this section, a thirty-day (30-day) classification request is required in accordance with paragraph (d) of this section. An exporter, reexporter, or transferor may rely on the producer's self-classification (for products described in (b)(1), only) or CCATS for an encryption item eligible for export or reexport under License Exception ENC under paragraph (b)(1), (2), or (3) of this section. Exporters are still required to comply with semi-annual sales reporting requirements under paragraph (e)(1) or (2) of this section, even if relying on a CCATS issued to a producer for specified encryption items described in paragraphs (b)(2) and (b)(3)(iii) of this section. Note to paragraph (b) introductory text: Mass market encryption software that would be considered publicly available under § 734.3(b)(3) of the EAR, and is authorized for export under this paragraph (b), remains subject to the EAR until all applicable classification or self-classification requirements set forth in this section are fulfilled. (1) Immediate authorization. This paragraph (b)(1) authorizes the exports, reexports, and transfers (in-country) of the associated commodities self-classified under ECCNs 5A002.a or 5B002, and equivalent or related software therefor classified under 5D002, except any such commodities, software, or components described in (b)(2) or (3) of this section, subject to submission of a self-classification report in accordance with § 740.17(e)(3) of the EAR. Items described in this paragraph (b)(1) that meet the criteria set forth in Note 3 to Category 5 - Part 2 of the Commerce Control List (the “mass market” note) are classified as ECCN 5A992.c or 5D992.c following self-classification or classification by BIS and are removed from “EI” and “NS” controls. (2) Classification request required. Thirty (30) days after the submission of a classification request with BIS in accordance with paragraph (d) of this section and subject to the reporting requirements in paragraph (e) of this section, this paragraph under License Exception ENC authorizes certain exports, reexports, and transfers (in-country) of the items specified in paragraph (b)(2) and submitted for classification. Note to paragraph (b)(2) introductory text: Immediately after the classification request is submitted to BIS in accordance with paragraph (d) of this section and subject to the reporting requirements in paragraph (e) of this section, this paragraph also authorizes exports, reexports, and transfers (in-country) of: All submitted encryption items described in this paragraph (b)(2), except “cryptanalytic items,” classified in ECCN 5A004.a, 5D002.a.3.a or c.3.a, or 5E002, to any end user located or headquartered in a country listed in supplement no. 3 to this part; Encryption source code as described in paragraph (b)(2)(i)(B) to non-“government end users” in any country; “Cryptanalytic items,” classified in ECCN 5A004.a, 5D002.a.3.a or c.3.a, or 5E002, to non-“government end users,” only, located or headquartered in a country listed in supplement no. 3 to this part; and Items described in paragraphs (b)(2)(iii) and (b)(2)(iv)(A) of this section, to specified destinations and end users. (i) Cryptographic commodities, software, and components. License Exception ENC authorizes exports, reexports, and transfers (in-country) of the items in paragraph (b)(2)(i)(A) of this section to “less sensitive government end users” and non- “government end users” located or headquartered in a country not listed in supplement no. 3 to this part, and the items in paragraphs (b)(2)(i)(B) through (H) to non “government end users” located or headquartered in a country not listed in supplement no. 3. (A) 'Network Infrastructure.' ' Network infrastructure' commodities and software, and components therefor, meeting any of the following with key lengths exceeding 80-bits for symmetric algorithms: (1) WAN, MAN, VPN, backhaul and long-haul. Aggregate encrypted WAN, MAN, VPN, backhaul or long-haul throughput (including communications through wireless network elements such as gateways, mobile switches, and controllers) equal to or greater than 250 Mbps; (2) [Reserved] (3) Satellite infrastructure. Transmission over satellite at data rates exceeding 10 Mbps; (4) Media gateways and other unified communications (UC) infrastructure, including Voice-over-Internet Protocol (VoIP) services. Media (voice/video/data) encryption or encrypted signaling to more than 2,500 endpoints, including centralized key management therefor; or (5) Terrestrial wireless infrastructure. Air interface coverage (e.g., through base stations, access points to mesh networks, and bridges) exceeding 1,000 meters, where any of the following applies: (i) Maximum transmission data rates exceeding 10 Mbps (at operating ranges beyond 1,000 meters); or (ii) Maximum number of concurrent full-duplex voice channels exceeding 30; Notes to paragraph (b)(2)(i)(A): The License Exception ENC eligibility restrictions of paragraphs (b)(2)(i)(A)(3) (satellite infrastructure) and (b)(2)(i)(A)(5) (terrestrial wireless infrastructure) do not apply to satellite terminals or modems meeting all of the following: a. The encryption of data over satellite is exclusively from the user terminal to the gateway earth station, and limited to the air interface; and b. The items meet the requirements of the Cryptography Note (Note 3) in Category 5 - Part 2 of the Commerce Control List. 'Network infrastructure' (as applied to encryption items). A 'network infrastructure' commodity or software is any “end item,” commodity or “software” for providing one or more of the following types of communications:” (a) Wide Area Network (WAN); (b) Metropolitan Area Network (MAN); (c) Virtual Private Network (VPN); (d) Satellite; (e) Digital packet telephony/media (voice, video, data) over Internet protocol; (f) Cellular; or (g) Trunked. Note 1 to paragraph 2: 'Network infrastructure' end items are typically operated by, or for, one or more of the following types of end users: (1) Medium- or large- sized businesses or enterprises; (2) Governments; (3) Telecommunications service providers; or (4) Internet service providers. Note 2 to paragraph 2: Commodities, software, and components for the “cryptographic activation” of a 'network infrastructure' item are also considered 'network infrastructure' items. (B) Certain “encryption source code.” “Encryption source code” that is not publicly available as that term is used in § 742.15(b) of the EAR; (C) Customized items. Encryption software, commodities and components therefor, where any of the following applies: (1) Customized for government end users or end uses. The item has been designed, modified, adapted, or customized for “government end user(s);” or (2) Custom or changeable cryptography. The cryptographic functionality of the item has been designed or modified to customer specification or can be easily changed by the user; (D) Quantum cryptography. ECCN 5A002.c or 5D002 “quantum cryptography” commodities or software; (E) [Reserved] (F) Network penetration tools. Encryption commodities and software that provide penetration capabilities that are capable of attacking, denying, disrupting or otherwise impairing the use of cyber infrastructure or networks; (G) Public safety/first responder radio (private mobile radio (PMR)). Public safety/first responder radio (e.g., implementing Terrestrial Trunked Radio (TETRA) and/or Association of Public-Safety Communications Officials International (APCO) Project 25 (P25) standards); (H) Specified cryptographic ultra-wideband and “spread spectrum” items. Encryption commodities and components therefor, classified under ECCNs 5A002.d or .e, and equivalent or related software therefor classified under ECCN 5D002. (ii) Cryptanalytic commodities and software. “ Cryptanalytic items” classified in ECCN 5A004.a, 5D002.a.3.a, or 5D002.c.3.a, to non- “government end users” located or headquartered in countries not listed in supplement no. 3 to this part. (iii) “Open cryptographic interface” items. Items that provide an “open cryptographic interface,” to any end user located or headquartered in a country listed in supplement no. 3 to this part. (iv) Specific encryption technology. Specific encryption technology as follows: (A) Technology for “non-standard cryptography.” Encryption technology classified under ECCN 5E002 for “non-standard cryptography,” to any end user located or headquartered in a country listed in supplement no. 3 to this part; (B) Other technology. Encryption technology classified under ECCN 5E002 except technology for “cryptanalytic items” classified in ECCN 5A004.a, 5D002.a.3.a or 5D002.c.3.a, “non-standard cryptography” or any “open cryptographic interface,” to any non-“government end user” located in a country not listed in Country Group D:1, E:1, or E:2 of supplement no. 1 to part 740 of the EAR. Note to paragraph (b)(2): Commodities, components, and software classified under ECCNs 5A002.b or 5D002.b, for the “cryptographic activation” of commodities or software specified by this paragraph (b)(2) are also controlled under this paragraph (b)(2). (3) Classification request required for specified commodities, software, and components. Thirty (30) days after a classification request is submitted to BIS in accordance with paragraph (d) of this section and subject to the reporting requirements in paragraph (e) of this section, this paragraph authorizes exports, reexports, and transfers (in-country) of the items submitted for classification, as further described in this paragraph (b)(3), to any end user, provided the item does not perform the functions, or otherwise meet the specifications, of any item described in paragraph (b)(2) of this section. Items described in paragraph (b)(3)(ii) or (iv) of this section that meet the criteria set forth in Note 3 to Category 5 - Part 2 of the CCL (the “mass market” note) are classified under ECCN 5A992.c or 5D992.c following classification by BIS. Note to introductory text of paragraph (b)(3): Immediately after the classification request is submitted to BIS in accordance with paragraph (d) of this section and subject to the reporting requirements in paragraph (e) of this section, this paragraph also authorizes exports, reexports, transfers (in-country) of the items described in this paragraph (b)(3) to any end user located or headquartered in a country listed in supplement no. 3 to this part. (i) Non-“mass market” “components,” toolsets, and toolkits. Specified components classified under ECCN 5A002.a and equivalent or related software classified under ECCN 5D002 that do not meet the criteria set forth in Note 3 to Category 5 - Part 2 of the CCL (the “mass market” note) and are not described by paragraph (b)(2) or (b)(3)(ii) of this section, as follows: (A) Chips, chipsets, electronic assemblies and field programmable logic devices; (B) Cryptographic libraries, modules, development kits and toolkits, including for operating systems and cryptographic service providers (CSPs). (ii) “Non-standard cryptography” (by items not otherwise described in paragraph (b)(2) of this section.) Encryption commodities, software and components not described by paragraph (b)(2) of this section, that provide or perform “non-standard cryptography” as defined in part 772 of the EAR. (iii) Advanced network vulnerability analysis and digital forensics. Encryption commodities and software not described by paragraph (b)(2) of this section, that provide or perform vulnerability analysis, network forensics, or computer forensics functions characterized by any of the following: (A) Automated network vulnerability analysis and response. Automated network analysis, visualization, or packet inspection for profiling network flow, network user or client behavior, or network structure/topology and adapting in real-time to the operating environment; or (B) Digital forensics and investigative tools. Items specified in ECCN 5A004.b, 5D002.a.3.b, or 5D002.c.3.b, see supplement no. 1 to part 774 Commerce Control List. (iv) “Cryptographic activation” commodities, components, and software. Commodities, components, and software classified under ECCNs 5A002.b or 5D002.b where the product or cryptographic functionality is not otherwise described in paragraphs (b)(2) or (b)(3)(i) of this section. The critical Note 3 is as follows: Note 3 to Category 5, Part 2 Note 3: Cryptography Note: ECCNs 5A002, 5A003, 5A004 and 5D002, do not control items as follows: a. Items meeting all of the following: Generally available to the public by being sold, without restriction, from stock at retail selling points by means of any of the following: a. Over-the-counter transactions; b. Mail order transactions; c. Electronic transactions; or d. Telephone call transactions; The cryptographic functionality cannot be easily changed by the user; Designed for installation by the user without further substantial support by the supplier; and [RESERVED] When necessary, details of the items are accessible and will be provided, upon request, to the appropriate authority in the exporter’s country in order to ascertain compliance with conditions described in paragraphs 1. through 3. of this Note a.; b. Hardware components or ‘executable software’, of existing items described in paragraph a. of this Note, that have been designed for these existing items, and meeting all of the following: “Information security” is not the primary function or set of functions of the component or ‘executable software’; The component or ‘executable software’ does not change any cryptographic functionality of the existing items, or add new cryptographic functionality to the existing items; The feature set of the component or ‘executable software’ is fixed and is not designed or modified to customer specification; and When necessary, as determined by the appropriate authority in the exporter’s country, details of the component or ‘executable software’, and details of relevant end-items are accessible and will be provided to the authority upon request, in order to ascertain compliance with conditions described above. Technical Note: For the purpose of the Cryptography Note, ‘executable software’ means “software” in executable form, from an existing hardware component excluded from 5A002, 5A003 or 5A004 by the Cryptography Note. Note: ‘Executable software’ does not include complete binary images of the “software” running on an end-item. Note to the Cryptography Note: To meet paragraph a. of Note 3, all of the following must apply: a. The item is of potential interest to a wide range of individuals and businesses; and b. The price and information about the main functionality of the item are available before purchase without the need to consult the vendor or supplier. A simple price inquiry is not considered to be a consultation. In determining eligibility of paragraph a. of Note 3, BIS may take into account relevant factors such as quantity, price, required technical skill, existing sales channels, typical customers, typical use or any exclusionary practices of the supplier. N.B. to Note 3 (Cryptography Note): You must submit a classification request or self-classification report to BIS for mass market encryption commodities and software eligible for the Cryptography Note employing a key length greater than 64 bits for the symmetric algorithm (or, for commodities and software not implementing any symmetric algorithms, employing a key length greater than 768 bits for asymmetric algorithms or greater than 128 bits for elliptic curve algorithms) in accordance with the requirements of § 740.17(b) of the EAR in order to be released from the “EI” and “NS” controls of ECCN 5A002 or 5D002.
Since you don't say which country you're in, it's likely that you're interested in United States law. You are probably in the clear here, though you're getting close enough to the edge of breaking the law that I wouldn't be confident about not being prosecuted and/or convicted. The relevant laws in this case appear to be 18 USC 471, 18 USC 472, and perhaps 18 USC 514. All three of them begin "Whoever, with the intent to defraud...". It's questionable whether creating counterfeit money as a burglar decoy counts as defrauding the burglar.