Article Image UPDATE on Morhpeus Titania, aka Thomas Costanzo, arrested 4/20 by Federal Agents


UPDATE 2018-07-25 on Morhpeus Titania, aka Thomas Costanzo, Bitcoin Arrest 4/20 by Federal Agents

Written by Subject: Arizona's Top News

UPDATE 2018-07-25

Arizona Bitcoin Trial - Morpheus Sentencing - Monday, July 30, 2018 at 2:00 PM

When:  Monday, July 30, 2018 at 2:00 PM

Where: Federal Court Building

401 W. Washington Street

Phoenix, AZ 85003

Courtroom: 602

I hope most of those who are following the Criminal Case of Thomas Mario Costanzo, AKA Morpheus, have had the opportunity to read the documents posted at:

I have attempted to keep the documents to date. Document 224 should be of interest. The response from the government has not been posted as of this writing.

There were two basic sets of charges against Thomas. One: failure to comply with reporting requirements when dealing with amounts over ten thousand dollars ($ 10,000.00), "Know Your Customer" requirements, and "Suspicious Activity" reporting requirements. Two: Money laundering.

The first set of charges is a specific bank and financial institution related requirement. The jury, rightly, threw all of those charges out. Thomas Costanzo was not found to be a bank or financial institution and thus not required to comply with banking regulations. The second set, money laundering charges, was upheld.

The question now before the court is what sentence to impose on Thomas. Document number 224 will provide information for you to gain understanding on the direction the defense would like this to go. The response brief yet to come will be of interest. It may be posted prior to Monday. I will check daily and post it when it is available.

For those who wish to support Thomas, please plan to attend the proceedings on Monday. Also, there is always a potential for a change of sentencing date. If there is a change an immediate article will be posted on Freedoms Phoenix, so stay tuned.

UPDATE 2018-04-19

Writing letters in support of Morpheus for sentencing hearing - deadline May 25, 2018

Here is a copy of Ernest Hancock's letter to the Judge in support of Morpheus:

May 23rd 2018


To: Honarable Judge G. Murray Snow
From: Ernest Hancock
Re: Thomas Costanzo Sentencing



I hope to share a narrative of my experiences with Thomas so that you have a much better understanding of why Thomas is thought highly of by his friends and associates.

In February 2003 I began my talk show career on KXAM radio in Scottsdale following the sale of our family restaurant. A regular listener and caller, 'Morpheus from Anthem', soon became a friend due to his philosophy of peace and voluntary relationships.

In February of 2007 Thomas was one of about a dozen people that were the first to produce and distribute the Ron Paul Revolution signs here in Phoenix from a downtown workshop that sparked a worldwide "LOV3olution". He was drawn to the effort by his search for truth and peaceful interactions with all he came into contact with. He is well known in the liberty community for his hard work ethic and his support of a society without force or the threat of force.

For over 2 years Thomas worked for our website as the Sales Manager and helped develop the Sales Desk from scratch that has become an intricate part of our website. I was happy to have Thomas represent our interests to advertisers and he has been a good friend to our family, 4 children and 11 grandchildren.

The depiction of Thomas as a facilitator of illegal activity with nefarious characters is incorrect. Every interaction Thomas has had with anyone, including government agents at all levels, has been one of education. My knowledge and experience of each of Thomas' interactions with anyone has been an opportunity to explain his advocacy of liberty. If I had to describe Thomas in the briefest of terms it would be, Peaceful. But he is very willing to stand up for himself with humor and conviction.

I remember when Bitcoin was presented to the liberty community and how Thomas reacted. The features of cryptocurrencies and blockchain technology supported Thomas' desire to make a living without violating another's rights or participating in a system that funded war. 'Bitcoins Not Bombs' was a main part of Thomas' rhetoric and he wished to participate in a system of voluntary interactions between individuals where he was appreciated for the service he provided. Oh, and Thomas, like many of us, is adverse to paperwork. Cryptocurrencies provided an easy entry to an ecosystem that didn't violate Thomas' sense peaceful and voluntary interactions.

The prosecution's depiction of Thomas facilitating illegal transactions is misleading. Thomas is a sober and clear headed individual that avoided the drug culture (including alcohol, from personal experience) and the damage caused. He is a well-known advocate for a clean life that includes healthy nutrition for both the mind and body.

Thomas lives by example and can be evaluated a great deal by the quality friends he has and the good he has done his community and society in general. He lives a modest life and used public transportation often in an effort to avoid the costs and requirements of traditional transportation. Thomas lives his convictions and is a quality example to all that know him. A man of peace and industriousness.

The conviction of Thomas may accurately depict his violation of a law but this conviction, and other interactions with government does not define Thomas accurately. Since I have known Thomas I have never experienced or even heard about Thomas ever making another uncomfortable in any way. He is always a welcome guest to any event and everyone is glad he arrived.

Any community is better with Thomas as a part of it. Any escalation of emotions or violent tendencies in Thomas' presence are quickly diverted into productive and peaceful efforts. Thomas is not a threat to anyone and has proven himself to be a calming force in an ocean of uncertainty and frustration.

I was in the courtroom when the prosecution read the 'rap sheet' of Thomas' interactions with Law Enforcement of the past and I remembered many of the instances. All I could remember was that Thomas doesn't like paperwork or asking permission or seeking approval from anything other than his desire to be a good neighbor and friend. Thomas' aversion of intimidation by others isn't so much a personal thing as it is an opportunity to advocate for respectful interactions with his fellow human beings.

Thomas has been rapidly improving himself ever since I've known him and continues to do so… it's part of who he is. He always has new information to share and always with the goal of individual self-improvement and a better world.

I am unable to conclude this message without sharing the thought that humanity is better served with Thomas among us than separated from us.

Thomas isn't known as a law breaker, he is looked upon as an avoider of what he considers unjust laws, and has gone to great effort and personal sacrifice to be an example to others of what can be accomplished by simply living a simple life serving others and avoiding the bad elements in our society. But sometimes we are all put in a situation when saying the wrong thing at the wrong time can have dire consequences, but this is not the measure of what kind of man Thomas is. I am certain that Thomas holds no grudge and will be mindful of what he has learned through this legal process.

I encourage his release,… not just for Thomas' benefit, but for all of us. We all need more peaceful, pleasant and justice minded people like him among us.

In Peace,

Ernest Hancock
602 717 5900
4886 W Port Au Prince Lane
Phoenix, Az 85306

Written by Date: 04-19-2018 Subject: Bitcoin

Image result for morpheus matrix


UPDATE 2018-03-20

Article Image

Arizona Bitcoin Trial - Tuesday, March 20, 2018

Written by Terry Major Date: 03-19-2018 Subject: Bitcoin

The trial of Morpheus, Thomas Mario Costanzo, begins at 9:00 AM in Courtroom 602, 401 West Washington Street, Phoenix, AZ 85003 before Judge G Murray Snow.

If you have not been following the filed documents, I suggest you visit the Court Case Documents website and get current with the motions that have been filed.

Court Case Documents
For those of you interesting in the proceedings, please attempt to be there.



UPDATE 2018-03-10 

Morpheus Pretrial Conference - Tues March 13th, 2018 - Starts at 9:30 am - PHX, AZ

Morpheus has been charged with Money Laundering for selling BitCoin. He has chosen to take it to a jury trial. The outcome of this case will be very important for the future of freedom in this country as well as Morpheus' personal well being. This is the pretrial conference where motions will be argued.

UPDATE 2017-12-12: Morpheus Testimony from Jail


Transcribed (from handwritten letter - both below):

Thomas Costanzo

73285408 CADC

POB 6300

Florence, AZ 85132


United States Senate Committee on the Judiciary

224 Dirksen Senate Office Building

Washington DC 20501-6050

Chairman Chuck Grasley, Ranking member Feinstien and members of the committee

I would like to enter my testimony to be included in the transcript for S1241 Modernizing AML Laws to combat money laundering and terrorist financing that took place on November 258, 2017.

The testimony of the DOJ and FBI was deceptive, misleading, and irrelevant. When the DOJ gave testimony they referred to Liberty Reserve which operated from 2006-2013. Liberty Reserve had nothing to do with Cryptocurrencies or Bitcoin. Bitcoin was the first Cryptocurrency which was not even invented until January 2009 and the first known trade involving Bitcoin did not occur until May 22, 2017. Liberty Reserve was not using Cryptocurrency. The case was successfully prosecuted and the defendant Budovsky, is now serving a 20 year sentence using existing laws.

In the 2 cases described by the FBI, had nothing to do with money laundering, these were drug cases. These were successfully prosecuted using existing laws.

I have been incarcerated for 223 days awaiting trial, for Bitcoin related trades. I was charged with unlicensed money transmitting under title 28 USC1960 and money laundering under 28USC1956. The Prosecution has already dismissed the unlicensed money transmitting charges. The Government created a ruse to entrap me to call it money laundering. My Attorney Maria Weidner has filed an Outrageous Government Conduct to dismiss the money laundering charges, as there was no evidence that I was involved in any drug trade or illegal activity prior to the Government creating the lie of illegal sources.

Cryptocurrency is a misnomer. The correct term needs to be intangible commodity. The IRS has defined this as property. The design of the technology is thats its value is increased in the future, because of its fixed supply. This technology is an important step in humanities future, as it creates a system to exchange wealth without a central authority.

The system functions perfectly without government oversight. Any regulation will cause the Unites States to be left behind in this ground breaking technology in relation to the rest of the world.

I implore you to leave this technology alone. Any regulation in this area is superfluous because any criminal activity is already covered by existing laws.


Thomas Costanzo

UPDATE 2017-12-08:

Article ImageNews Link • Global

Courtroom and Trials

Arizona Bitcoin Case - New Trial Date Set

12/07/2017 • Pacer Documents

The new trial date is March 20, 2018. Of course, this could change again... For more info, go to my article - link below. In addition, when on the article page, click the "Return to Case" button in the upper right area to go to the documents.


Main Case Menu United States of America
Thomas Mario Costanzo
A.K.A. "Morpheus Titania"
Peter Nathan Steinmetz
A.K.A. "Amedio"
Return to Case

The docket sheet available through the Pacer webside provides us with a delayed view of what has transpired in a court case dating back to the filing of the original documents. Everything that has been available on Pacer has been posted on since the case against Peter Steinmetz and Thomas Costanzo began. Attempts are made to check Pacer each day and to dowload and copy the information to the case file on this site so that others may have access to material that they would otherwise have to pay for. Below will be articles that will be referred from - posted in reverse order by date.

(Most current at the top)
Here we go!

December 7, 2017
Since my last posting to, prior to the Arizona Brakfast Club on December 2nd, a few new documents and events have taken place.

On Monday, December 4th, a Status Conference was held before Judge G Murray Snow.

Motion Hearing set for 1/4/2018 at 9:00 AM

Jury Trial reset for 3/20/2018 at 9:00 AM

A Final Pretrial Conference is set for 3/13/2018 at 9:30 AM

(all in Courtroom 602, 401 West Washington Street, Phoenix, AZ 85003)

Additional dates related to Motions and Response/Replies also set.

It is highly recommended that the reader select specific documents within the listing of filed documents in this case to get a better understanding of the issues in this case.

Reading the Motions, Responses and Replies will give the reader a better understanding of the position held by the government and the defendants in this case.



UPDATE 2017-11-27:

Article Image News Link • Global

Criminal Justice System

Bitcoin Criminal Case - Postponement Coming - Morpheus Update

11-27-2017 • Pacer Documents

Bitcoin Criminal Case - Postponement Coming A signed order from the judge on November 21st dismisses Counts 1 & 2 of the Superseding Indictment as to BOTH defendants: Thomas Costanzo (Morpheus) and Dr. Peter Steinmetz.

UPDATE 11-24-17:

It's official as of the 22nd, Peter Seinmetz is free.

It's a good Thanksgiving for Peter and still 200 days for Thomas.

(Publisher: This isn't over for Thomas. There are still charges about having 60 various calibers of rounds in a box left by roommate and Not having a Permit for Bitcoin. Listen to the radio show 1st hr today - link below - for details)



UPDATE 11-08-17:

New Developments in the Arizona Bitcoin Case!

There are some new documents located on Pacer. Copies have been uploaded to the case information on The Bitcoin case, as well as a vaccine case, have been moved to the top of the page for easy access.

Morpheus' attorneys have presented four motions to the court:

1. to dismiss counts 1 & 2 of the indictment with a supplement presenting additional reasoning to dismiss the counts.

2. to dismiss counts 3,4,5,6 & 7 of the "first superseding indictment for outrageous government conduct" (along with a request for an evidentiary hearing). Note: This was followed by a request that audio recordings be presented as exhibits.

3. to suppess evidence obtained from the search of Morpheus' residence.

4. to dismiss count 8 of the indictment.

If all of these motions were granted, the case would be over!

We will continue to check Pacer daily and provide updates as they are available. If you have not done so, I highly recommend the reading of the pertinent documents l

Read Full Story

Reported By Terry Major

UPDATE 11-02-17:

Letters from Morpheus...UPDATE NOVEMBER 2ND, 2017

UPDATE 10-30-17:

From Theo Chino (New York BitLicense Suit):

Just saw on Pacer that Thomas' case was updated.

This is really Cyrus Vance, Jr. handy work of his Cyber Investigation unit.

I was looking at Exhibit 6 of the document and it read like a B movie script. 

Page 2:

-Line 2: IRS SA: And I'm Russian, okay ? (I would love to hear the tape.)
-Line 13: So you'd be okay if you know the product is heroin?
-Line 14: Uh, no, absolutely not. In fact, we can't even discuss this any further.
-Line 26: of course, you know, I'm a strict libertarian, so I personally don't think there should be any laws actually against your dealing in heroin. So I don't

Then the IRS SA complains that it's hard to do those transactions in New York, which is BS, but I wonder why NY is mentioned.

My essential problem is that it's a piece of technology, and our government shouldn't coerce it's citizen.

All the docs are here:

UPDATE 2017-07-09:

Article Image

News Link • Global


Neurologist from Phoenix to be Charged for Exchanging Bitcoin

07-09-2017 • by Ashour Iesho

Phoenix neurologist, Peter Steinmetz, has been charged with illegally operating an unlicensed Bitcoin exchange.

Article ImageNews Link • Global

Courtroom and Trials

BITCOIN: Costanzo - Steinmetz Trial Date extended to October 3rd, 2017

07/09/2017 • Pacer Documents

ORDER: IT IS ORDERED granting 31 Defendant's Motion to Continue Trial and Extend Time to File Pretrial Motions filed as to Thomas Mario Costanzo (1). IT IS FURTHER ORDERED continuing the trial from 8/1/2017 to 10/3/2017 at 09:00 AM in Courtroom 505,

Thomas Costanzo is incarcerated in and may be visited at:

Central Arizona Detention Center
1155 N. Pinal Parkway (Hwy 79)
Florence, AZ 85132

Thomas' mailing address is:
Thomas Costanzo
inmate 732-85-408
Central Arizona Detention Center
P.O. Box 6300
Florence, AZ 85132

To visit, first call the visitation center 520-868-2229 to confirm that visitation times are still Wed, Fri. and Sunday 12:45 p.m. to 2:15 p.m. Visitors must first arrive at 1155 N. Pinal Parkway to register between 11:45 a.m. and 12:15 a.m. Short pants are not permitted, neither are hats, purses, food, wallets or pencils. Visitors speak with inmates via phone through a glass partition.

Visitors are not allowed to bring Thomas anything, including books or money. You can write Thomas at the above P.O. and he will write back how to send him a book through Barnes and Noble. Amazon books are prohibited. Money can be sent to Thomas by Western Union. Send Western Union to: Corrections Corp of America, City Code -- Trustcca, State -- TN, Inmate number -- 73285408, inmate name -- Thomas Costanzo. Thomas says there is not much worth buying inside, but he does need stamps. Thomas has no cell phone or computer.

I visited him today for about an hour. No additional charges have been filed since April. The Feds had been wiretapping his phone prior to his arrest.

Michael Shoen


From a Reader,

Hello Donna,

I don't know how to be more explicit about people calling their US senators.

Check out how quick the Florida Legislature pass the same bill as what the US senate is trying to do. Scary ....
We just need to call ....

Can Ernest pass the word ?

How is Morpheus case coming up ?

Remove "Digital Currency" from Section 13 of Bill S1241 (Money Laundering Bill).

Article ImageFeature Article • Global


More Bitcoin in the news; arrests, hearings, fundraisers, etc...

The one of the document that can interest Morpheus' lawyer are this document was written by a Federal Magistrate Judge in Rochester, NY

HomeLand Security Complaint

William G. - Special Agent - Department of Homeland Security


Case Updates via Court Documents


FreeTalkLive with Ian Freeman - Daryl Perry - Ernest Hancock


Article Image Radio/TV • Declare Your Independence with Ernest Hancock

Declare Your Independence with Ernest Hancock - Radio


04-28-17 -- Ernest Hancock Live on FREE TALK LIVE Friday April 28, 2017 (MP3 & VIDEO LOADED)

Program Date: 04-28-2017

Ernest Hancock (Publisher of Freedom's Phoenix; Host of The Declare Your Independence with Ernest Hancock Radio Show) will be on FREE TALK LIVE @ 7 pm Friday 04/28 to discuss the situation surrounding Morphues's arrest - STREAMED LIVE

2017-04-28 Hour 4 Ernest on Free Talk Live RE Morpheus Arrest from Ernest Hancock on Vimeo.

Article ImageNews Link • Global

Criminal Justice System

What's Really Behind the Feds' Raid of Bitcoin Trader Morpheus Titania's Home?

04-27-2017 •

A multi-agency federal task force raided the Mesa apartment of local bitcoin trader Morpheus Titania last week in a case that seems ready-made for one of the suspect's anarchist-leaning blog posts.


Thomas Costanzo No-Knock Warrant PDF

Thomas Costanzo WireTap Warrant PDF

Here are some pictures of the property list of what was taken at the time of arrest:

Also, an interesting "purposeful" omission by the judge granting the search warrant. He specifically excluded weapons and ammunition...  Why? (see document below):


AS OF APRIL 24TH, 2017:

MINUTE ENTRY for proceedings held before Magistrate Judge Eileen S Willett: Initial Appearance as to Thomas Mario Costanzo held on 4/21/2017.


Appointing AFPD Maria Teresa Weidner.

Request by defense counsel to have the defendant screen for possible Crossroads placement.

Request GRANTED. Pretrial Services is directed to have the defendant screened.

This Court has not made a determination regarding release.

Defendant temporarily detained.


AUSA Melissa Karlen for Carolina Escalante Konti and Matthew Binford for the Government, AFPD Maria Weidner for defendant. Defendant is present and in custody.

Detention Hearing and Status Hearing re:

Preliminary Hearing set for 4/27/2017 at 10:30 AM in Courtroom 303, 401 West Washington Street, Phoenix, AZ 85003 before Magistrate Judge Michelle H Burns.

(Recorded by COURTSMART in Courtroom 302.)

Hearings held 3:15 PM to 3:19 PM and 3:30 PM to 3:36 PM.


There is no PDF document associated with this entry. (SMH) (Entered: 04/24/2017)



Arrainment - As for the charges, Morpheus has been charged with a felon (from 15+ yrs ago) in possession of ammunition... so far.

Next hearing is a "Detention Hearing" Thursday April 27th 2017 at 10:30am room #303 - 401 W Washington Federal Court Building.

His Public Defender thinks we should bring him a change of clothes, expecting him to get released then... I asked her to send me an email should there be any additional charges filed.

We're on it. Stay tuned.

Latest UPDATE (3) -

Hour One of "Declare Your Independence with Ernest Hancock" 4/21/2017 MP3 File - 43mins


Hearing Friday April 21st, 2017 @ 3 p.m. 

Federal Courthouse

401 W Washington; Phoenix, AZ  85003

Room 606

Judge Willett


Avid Bitcoin advocate Morhpeus Titania, aka Thomas Costanzo, was arrested today by Federal Agents in Mesa, Az.

Don't have many details of his arrest, other than no charges have been filed yet.

We will post any new details as we get them...

Agencies present:

MCSO (Maricopa County Sheriff's Office)

Scottsdale PD


Treasury Dept


2 Comments in Response to

Comment by Cronus de Gaia
Entered on:

I am collecting donations for Morpheus's defense fund. His arrest is part of a general attack on the legitimacy of BitCoin. A day is coming when it will be illegal to trade in anonymous bitcoins. This is just a "test run". Via PayPal: BitCoin: 1BiA9TJMqMvFD2dn1NENYGYWu3HJMPmdfy Please spread the word to everyone you know. Cronus 561-542-5800

Comment by PureTrust
Entered on:

Listen to Karl Lentz on his Talkshoe. Listen to the first, say, 15 minutes at Also, listen to Craig Lynch's snippet (12 minutes) of Karl at Be patient. These are talk show talks. You will have to do a bit of "transverting" to figure out how this applies to Morpheus's case.