My point was just that TradeHill, being the US entity, is the one in the US jurisdiction and that a criminal doing business with them doesn’t magically fall under US jurisdiction. I’ve no problem with BTC-e or whoever getting arrested, since they were clearly criminals, but I am concerned about US laws becoming a thing that applies to non-US citizens outside of the US (the implication in the comment I replied to being (as I read it) that BTC-e falls under US jurisdiction because they were doing business with a US company, which in my opinion is overreach)
Clearing laundered money through a US bank is more than sufficient for US jurisdiction to apply. You can choose not to like it but this is well established case law.
Case law, where? In the US? That's a circular argument, since it's exactly the validity of US law on foreign soil that's being discussed. To cite Monty Python, "if I went 'round sayin' I was Emperor, just because some
moistened bint lobbed a scimitar at me, they'd put me away!"
Likewise, if some random country made a bunch of case law in its own courts establishing that foreign nationals in other countries were to be punished for making heretical texts available to citizens of that country, we'd laugh at them, not say "well, the case law is well established" and extradite our citizens.