US Makes Bitcoin Exchange Arrests!.........Here We Go Then!

[LostDutchman]

http://www.bbc.co.uk/news/technology-25919482

US Makes Bitcoin Exchange Arrests!

"The operators of two exchanges for the virtual currency Bitcoin have been arrested in the US.

The Department of Justice said Robert Faiella, known as BTCKing, and Charlie Shrem from BitInstant.com have both been charged with money laundering.

The authorities said the pair were engaged in a scheme to sell more than $1m (£603,000) in bitcoins to users of online drug marketplace the Silk Road.

The site was shut down last year and its alleged owner was arrested.

Mr Shrem was arrested on Sunday at New York's JFK airport. He was expected to appear in court on Monday, prosecutors said.

Mr Faiella was arrested on Monday at his home in Cape Coral, Florida.

Mr Shrem is a founding member and the current vice chairman of the Bitcoin Foundation, a trade group set up to promote Bitcoin as an alternative currency.

Last year, Mr Shrem set up a bar in New York that accepted bitcoins.

BitInstant is one of the largest Bitcoin exchanges on the internet. At the time of publication, the service was inaccessible.

Bitcoin exchanges are services that allow users to trade bitcoins for traditional currencies."

[Analyticse]

this tragedy how about democraty kadafi bomb city how people slep is scary how true situation combination about libertyrezerve auhtor arest etc value in our bitcoin web masters/dev etc....
dramatic situation 
i am think some wrong not be make for planet world if 1 guy in usa amerika not pay tex or some eror 

if this true
very said news today
make hands down
and drop in window video cards and computer for mining procedure stop i am confused today 

to much people invest and get a lot loans for make be in biz
also some merchants get btc for future btc/ltc ebay/amazon etc......
i am hope be normal this situation

[LostDutchman]

this tragedy how about democraty kadafi bomb city how people slep is scary how true situation combination about libertyrezerve auhtor arest etc value in our bitcoin web masters/dev etc....
dramatic situation 
i am think some wrong not be make for planet world if 1 guy in usa amerika not pay tex or some eror 

if this true
very said news today
make hands down
and drop in window video cards and computer for mining procedure stop i am confused today 

to much people invest and get a lot loans for make be in biz
also some merchants get btc for future btc/ltc ebay/amazon etc......
i am hope be normal this situation

Before the haters come here and bash you because of your English, let me thank you for your post!

I got your points and you are correct!

Thank you for your well thought out reply!

My $.02.

[whtchocla7e]

Vice chairman of the Bitcoin Foundation involved in money laundering?? lol

[Bobsurplus]

Vice chairman of the Bitcoin Foundation involved in money laundering?? lol

Not good~!==!

[LostDutchman]

I suspect there is more going on here than we know at this point because obtaining and selling BTC is legal.  Has to be some chicanery involved someplace in the thing.

My $.02.

[Bobsurplus]

I suspect there is more going on here than we know at this point because obtaining and selling BTC is legal.  Has to be some chicanery involved someplace in the thing.

My $.02.

Its obvious you did not read the article..

they were conspiring to sell bitcoins to criminals off the books... that is 100% illegal

[banaltcoin]

Now its the time for USA agents to revenge,

All Bitcoin Business is in fact less/more relating to SilkRoad, SilkRoad makes Bitcoin's sucess today

It's just about the timing to investigate this fact and get a reason to destroy Bitcoin, then arrest Mtgox/TradeHill/Bitinstant etc..

[LostDutchman]

I suspect there is more going on here than we know at this point because obtaining and selling BTC is legal.  Has to be some chicanery involved someplace in the thing.

My $.02.

Its obvious you did not read the article..

they were conspiring to sell bitcoins to criminals off the books... that is 100% illegal

Wrongo, boyo!

The article mentions nothing about "selling off the books", even though that is but one of many things they could have been doing.  Just because they were going to sell on Silk Road does not mean that the transactions were "off the books".  Besides, not everyone using Silk Road was a criminal!

I suggest that YOU re-read the article as published above!

My $.02.

[Bobsurplus]

I suspect there is more going on here than we know at this point because obtaining and selling BTC is legal.  Has to be some chicanery involved someplace in the thing.

My $.02.

Its obvious you did not read the article..

they were conspiring to sell bitcoins to criminals off the books... that is 100% illegal

Wrongo, boyo!

The article mentions nothing about "selling off the books", even though that is but one of many things they could have been doing.  Just because they were going to sell on Silk Road does not mean that the transactions were "off the books".

I suggest that YOU re-read the article as published above!

My $.02.

..


Ok here we go, I'll quote the part you must have missed!!!



SHREM, who personally bought drugs on Silk Road, was fully aware that Silk Road was a drug-trafficking website, and through his communications with FAIELLA, SHREM also knew that FAIELLA was operating a Bitcoin exchange service for Silk Road users. Nevertheless, SHREM knowingly facilitated FAIELLA’s business with the Company in order to maintain FAIELLA’s business as a lucrative source of Company revenue. SHREM knowingly allowed FAIELLA to use the Company’s services to buy Bitcoins for his Silk Road customers; personally processed FAIELLA’s orders; gave FAIELLA discounts on his high-volume transactions; failed to file a single suspicious activity report with the United States Treasury Department about FAIELLA’s illicit activity, as he was otherwise required to do in his role as the Company’s Compliance Officer; and deliberately helped FAIELLA circumvent the Company’s AML restrictions, even though it was SHREM’s job to enforce them and even though the Company had registered with the Treasury Department as a money services business.

Read more: http://www.businessinsider.com/report-ceo-of-major-bitcoin-exchange-arrested-2014-1#ixzz2rcYivlx2

[LostDutchman]

I suspect there is more going on here than we know at this point because obtaining and selling BTC is legal.  Has to be some chicanery involved someplace in the thing.

My $.02.

Its obvious you did not read the article..

they were conspiring to sell bitcoins to criminals off the books... that is 100% illegal

Wrongo, boyo!

The article mentions nothing about "selling off the books", even though that is but one of many things they could have been doing.  Just because they were going to sell on Silk Road does not mean that the transactions were "off the books".

I suggest that YOU re-read the article as published above!

My $.02.

..


Ok here we go, I'll quote the part you must have missed!!!



SHREM, who personally bought drugs on Silk Road, was fully aware that Silk Road was a drug-trafficking website, and through his communications with FAIELLA, SHREM also knew that FAIELLA was operating a Bitcoin exchange service for Silk Road users. Nevertheless, SHREM knowingly facilitated FAIELLA’s business with the Company in order to maintain FAIELLA’s business as a lucrative source of Company revenue. SHREM knowingly allowed FAIELLA to use the Company’s services to buy Bitcoins for his Silk Road customers; personally processed FAIELLA’s orders; gave FAIELLA discounts on his high-volume transactions; failed to file a single suspicious activity report with the United States Treasury Department about FAIELLA’s illicit activity, as he was otherwise required to do in his role as the Company’s Compliance Officer; and deliberately helped FAIELLA circumvent the Company’s AML restrictions, even though it was SHREM’s job to enforce them and even though the Company had registered with the Treasury Department as a money services business.

Read more: http://www.businessinsider.com/report-ceo-of-major-bitcoin-exchange-arrested-2014-1#ixzz2rcYivlx2

Point well taken but that is not the article that I originally posted and that article was obviously inomplete.

There is now a flurry of more detailed articles popping up all over the web, making it much more clear what these assholes were up to.

My apologies for having sounded harsh!

My $.02.

[doingdoing3000]

I think, Mr. Manhattan U.S. Attorney has sold all his Coins before publicating this kind of information. And tomorrow morning he'll buys everything back. Mh?

[Phinnaeus Gage]

this tragedy how about democraty kadafi bomb city how people slep is scary how true situation combination about libertyrezerve auhtor arest etc value in our bitcoin web masters/dev etc....
dramatic situation 
i am think some wrong not be make for planet world if 1 guy in usa amerika not pay tex or some eror 

if this true
very said news today
make hands down
and drop in window video cards and computer for mining procedure stop i am confused today 

to much people invest and get a lot loans for make be in biz
also some merchants get btc for future btc/ltc ebay/amazon etc......
i am hope be normal this situation

Before the haters come here and bash you because of your English, let me thank you for your post!

I got your points and you are correct!

Thank you for your well thought out reply!

My $.02.

Quick aside.

Note to self: Remember, and use LostDutchman's way of handling posters whose English in not up to snuff.

Thank you, LD. Seriously!

~Bruno Kucinskas

[Bobsurplus]

I suspect there is more going on here than we know at this point because obtaining and selling BTC is legal.  Has to be some chicanery involved someplace in the thing.

My $.02.

Its obvious you did not read the article..

they were conspiring to sell bitcoins to criminals off the books... that is 100% illegal

Wrongo, boyo!

The article mentions nothing about "selling off the books", even though that is but one of many things they could have been doing.  Just because they were going to sell on Silk Road does not mean that the transactions were "off the books".

I suggest that YOU re-read the article as published above!

My $.02.

..


Ok here we go, I'll quote the part you must have missed!!!



SHREM, who personally bought drugs on Silk Road, was fully aware that Silk Road was a drug-trafficking website, and through his communications with FAIELLA, SHREM also knew that FAIELLA was operating a Bitcoin exchange service for Silk Road users. Nevertheless, SHREM knowingly facilitated FAIELLA’s business with the Company in order to maintain FAIELLA’s business as a lucrative source of Company revenue. SHREM knowingly allowed FAIELLA to use the Company’s services to buy Bitcoins for his Silk Road customers; personally processed FAIELLA’s orders; gave FAIELLA discounts on his high-volume transactions; failed to file a single suspicious activity report with the United States Treasury Department about FAIELLA’s illicit activity, as he was otherwise required to do in his role as the Company’s Compliance Officer; and deliberately helped FAIELLA circumvent the Company’s AML restrictions, even though it was SHREM’s job to enforce them and even though the Company had registered with the Treasury Department as a money services business.

Read more: http://www.businessinsider.com/report-ceo-of-major-bitcoin-exchange-arrested-2014-1#ixzz2rcYivlx2

Point well taken but that is not the article that I originally posted and that article was obviously inomplete.

There is now a flurry of more detailed articles popping up all over the web, making it much more clear what these assholes were up to.

My apologies for having sounded harsh!

My $.02.

All is good, Its just sad though, because now charlie is going to go from one rich dude, to poor overnight. You know the feds are going to want to take his stack  of coins.

[BitCoinNutJob]

Team america

[AgeraS]

One possibility...

I know from firsthand experience, having registered a company with Fincen, that the individual that is listed with Fincen as the AML compliance officer is 100% responsible for reporting any suspicious activity and can be prosecuted for not flagging one bad actor that is later caught by the feds. This would explain why only Charlie is being prosecuted and none of the other executives at Bitinstant. Because let's face it, at a small company it would be really difficult to keep the other executives from knowing that this was going on.


Also, the feds probably stole all of Shrems remaining bitcoin and transferred it to their personal wallets while smoking the rest of Shrems herbs  

[LostDutchman]

this tragedy how about democraty kadafi bomb city how people slep is scary how true situation combination about libertyrezerve auhtor arest etc value in our bitcoin web masters/dev etc....
dramatic situation 
i am think some wrong not be make for planet world if 1 guy in usa amerika not pay tex or some eror 

if this true
very said news today
make hands down
and drop in window video cards and computer for mining procedure stop i am confused today 

to much people invest and get a lot loans for make be in biz
also some merchants get btc for future btc/ltc ebay/amazon etc......
i am hope be normal this situation

Before the haters come here and bash you because of your English, let me thank you for your post!

I got your points and you are correct!

Thank you for your well thought out reply!

My $.02.

Quick aside.

Note to self: Remember, and use LostDutchman's way of handling posters whose English in not up to snuff.

Thank you, LD. Seriously!

~Bruno Kucinskas

You are more than welcome and I wish more here would give a break to those non-native English speakers who are doing their level best to wade through a very difficult language to learn!

My $.02.

[5thStreetResearch]

You are more than welcome and I wish more here would give a break to those non-native English speakers who are doing their level best to wade through a very difficult language to learn!

My $.02.

Actually that's $0.10 now...

[Recon]

Well they taked bitcoins who not been spent. They just taked computers width bitcoins who maby also belonged to none us citizens. In Europe its called theft.

We need separate theme there we can mark taked bitcoins who not been width intention to buy drugs mark as stolen.

[BTC-TK]

But what about busting them wall street douches that import cocaine by the ton and launder it for 75%? No?