You can get BitCoins for under 100 bucks via CoinBase and there are people on LocalBitCoins who are advertising offers to buy BitCoin for over 100 bucks. The spread is around $10; so I was considering arbitraging. Are there any laws that would apply to transactions conducted through the LocalBitcoins website that I might not be aware of? I'm thinking of a situation where a person you sell BitCoins to might, unbeknownst to you, turn around and do something illegal with them, and get caught. Would the seller of those coins some how be in the wrong in the eyes of the law?
Edit: I'm looking specifically for applicable US laws it would probably have to be several thousand bucks a week to be worth the time.