Cohen’s interpretation of the Wire Act drew the attention of the American authorities. In 1997, he was arrested by the FBI for violating the Wire Act. This arrest marked the beginning of a long legal battle between Cohen and the U.S. government. The case quickly gained national attention as it tested the boundaries of American jurisdiction in the context of online gambling.
One of the key arguments made by Cohen’s legal team was the lack of legal precedent to support the application of American laws beyond its borders. They asserted that the U.S. government did not have the authority to regulate gambling activities taking place on a foreign island. Furthermore, they emphasized that Antigua’s authorities had licensed and regulated WSE, making their operations legal under Antiguan law.