Does anyone remember BitInstant and Charlie Shrem?

[QuestionAuthority]

For those of you that don't know or remember Charlie Shrem, he was the founder of a New York Bitcoin exchange called BitInstant and a devoted advocate of Bitcoin. Charlie started his career as a modest retailer of fine collectibles and cutlery in the marketplace of this forum. With great entrepreneurial spirit he secured the support of investors (the Winklevoss twins) and opened a bitcoin exchange in the economic power capital of New York. He also was co-owner of the only bar in New York to accept Bitcoin and one of the stars of the first bitcoin documentary film.

Unfortunately, our hero Charlie was placed under the microscope of an up and coming new U.S. District Attorney named Preet Bharara. Bharara's career in that office began about the same time our beloved Satoshi was inventing the world changing currency we all love (2009). Bharara was desperate to make a name for himself and further his career. No one was safe from his greedy pursuit of career making attacks. Under Bharara, federal prosecutors conducted public corruption investigations against Democratic and Republican officials, securing convictions against the Speaker of the New York State Assembly, Sheldon Silver and the Majority Leader of State Senate, Dean Skelos. One of Bharara's chief adversaries was Governor Andrew Cuomo, whom Bharara's office investigated. Under Bharara, the U.S. Attorney's office was also known for its terrorism prosecutions. Bharara's office had international reach, pursuing defendants located in many countries outside the United States.

Bharara prosecuted and attacked poor Charlie Shrem, not because it was the right thing to do, not because there were no others laundering money on Wall Street worthy of attack, but simply because it would give him the nationwide media attention he so desperately wanted to further his career. Bharara stated in an interview: "As alleged, Robert Faiella and Charlie Shrem schemed to sell over $1 million in Bitcoins to criminals bent on trafficking narcotics on the dark web drug site, Silk Road. Truly innovative business models don’t need to resort to old-fashioned law-breaking, and when Bitcoins, like any traditional currency, are laundered and used to fuel criminal activity, law enforcement has no choice but to act. We will aggressively pursue those who would coopt new forms of currency for illicit purposes." Interesting that all around him in New York City the HSBC's and Wachovia's were laundering at least 1000 times the drug money that supposedly poor Charlie was laundering. But HSBC had clout and money to fight back, attacking them was not a good easy career move. 

Fast forward to the present, Preet Brahara was just fired from office by Donald Trump's administration. On March 11, 2017, he was fired, after refusing to resign like the pussy that he is, as a result of Attorney General Jeff Sessions' request for all remaining 46 US Attorneys appointed during President Obama's administration to resign.

Does this make New York a more "Bitcoin friendly" place to do business? Does this mean Trump's administration is Bitcoin friendly? Will it have no impact on Bitcoin commerce in New York? Since he's out of work now, will Preet Brahara open a gay nightclub in Manhattan?

[allthingsluxury]

I remember this well, crazy how fast time goes.

[Shiroslullaby]

Brahara probably didn't have too much interest in Bitcoin after that case, he was just going after an easy target to make a name for himself.
BitInstant happened to be located in this jurisdiction or they would probably still be operating.

Unfortunately, the only thing most District Attorneys know about Bitcoin is related to the dark web.

[Holliday]

That was a fun read.

This is my favorite part. "Truly innovative business models don’t need to resort to old-fashioned law-breaking, and when Bitcoins, like any traditional currency, are laundered and used to fuel criminal activity, law enforcement has no choice but to act."

Prohibition: Creating innovative business models since the dawn of government.

[QuestionAuthority]

That was a fun read.

This is my favorite part. "Truly innovative business models don’t need to resort to old-fashioned law-breaking, and when Bitcoins, like any traditional currency, are laundered and used to fuel criminal activity, law enforcement has no choice but to act."

Prohibition: Creating innovative business models since the dawn of government.

Thanks, it was fun writing it because Preet Bharara is a egomaniacal butthole. He never did anything while in office that wasn't aimed at furthering his career. Governor Andrew Cuomo knew it and that got him continuously investigated. Even though no impropriety against Cuomo was ever discovered Bharara had no problem abusing his power to attempt to discredit his detractors.

Poor Charlie was the classic example of being in the wrong place at the wrong time. I'm not excusing what happened at BitInstant, but with all of the massive mainstream evil being perpetrated by crooked New York banks during the economic collapse of 2009-2012 little fishy Charlie is the one he chose to jail. Bharara's priorities were more than a little self serving and pointless. I wonder if the stupid prick even realizes he was chasing the little exchange operator Charlie for a million bucks while the big exchange operator, Mark Karpeles, was about to screw people out of a half billion dollars.