UPDATE (16th July 17:08 BST): Comments added from Brian Klein of Baker Marquart, Burt Wagner's attorney.
An indictment against a Colorado bitcoin trader, Burt Wagner, has been dismissed "without prejudice" by a district court judge.
Wagner had been charged by the US Attorney's Office for operating an unlicensed money transmitting business in the state of Colorado in late 2014.
However, in a surprise turn of events, Judge William J Martinez issued an order to dismiss the case this Monday at its request.
Brian Klein, Wagner's attorney, said in a statement:
An indictment, which is voted by a grand jury, informs the accused of the allegations against them so they can plan a defence. The charge in question must then be proved at trial.
The question of whether money transmission laws apply to bitcoin traders remains a grey legal area, with LocalBitcoins user Pascal Reid recently losing a bid to dismiss money transmitter charges in Florida.
Wagner faced up to five years in prison and a $250,000 fine if found guilty. The trader's family have raised over £12,000 in donations, including bitcoin, to fight the allegations. Their outstanding legal debts alone are said to total $95,000.
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