Bitcoin exchange chief arrested


The CEO of BitInstant, Charlie Shrem, has been arrested at JFK airport, accused of selling more than $1M in Bitcoin (BITCN) to Silk Road users who then used the currency to buy drugs.

"Hiding behind their computers, both defendants are charged with knowingly contributing to and facilitating anonymous drug sales, earning substantial profits along the way," says DEA agent James Hunt.

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Comments (5)
  • kmi
    , contributor
    Comments (4562) | Send Message
     
    Money laundering and " and operating an unlicensed money transmitting business", being the charges, from linked article...

     

    US Attorney taking pains not to speak poorly about Bitcoin is interesting:
    "We will aggressively pursue those who would coopt new forms of currency for illicit purposes"

     

    As is the fact he uses the term 'currency'.
    27 Jan 2014, 11:58 AM Reply Like
  • losaneglee
    , contributor
    Comments (53) | Send Message
     
    the only reason bitcoin made it this far, is drug and crime $
    27 Jan 2014, 12:09 PM Reply Like
  • User 18898241
    , contributor
    Comment (1) | Send Message
     
    Right, like that will stick. We might just as well go after gun shop owners, who sold the guns to those who committed homicides in this country, or car dealerships who sold the cars, the owners of which were involved in drunk-driving accidents where people died. This is the government reacting to losing direct control over the population or commerce in this country. Nothing more, nothing less.
    27 Jan 2014, 12:18 PM Reply Like
  • frosty
    , contributor
    Comments (719) | Send Message
     
    If the gun shop owner knows the buyer will commit homicide, or the car dealer sells to a drunk, then they are complicit. Bitcoin buyers and sellers have nothing to fear (except losing real money) from trading with reputable organizations, which Silk Road was not.
    27 Jan 2014, 03:53 PM Reply Like
  • valueseekinguy
    , contributor
    Comment (1) | Send Message
     
    There will be more tentacles from the Silk Road bust I'm sure.
    27 Jan 2014, 12:18 PM Reply Like
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