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Author Topic: CEO OF BITCOIN EXCHANGE ARRESTED  (Read 19050 times)
CryptoCurrencyInc.com
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January 27, 2014, 04:55:08 PM
 #1

CEO OF BITCOIN EXCHANGE ARRESTED

The CEO of BitInstant, a Bitcoin exchange, has been arrested at JFK airport and charged with money laundering.

Charlie Shrem, along with a co-conspirator, is accused of selling over $1 million in Bitcoin to Silk Road users, who would then use them to buy drugs and other illicit items.

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

Shrem is a vice chairman at the Bitcoin Foundation. He is listed as a speaker at a Bitcoin conference in Miami that ended Sunday.

Shrem is believed to own a substantial amount of Bitcoin.

Read more: http://www.businessinsider.com/report-ceo-of-major-bitcoin-exchange-arrested-2014-1#ixzz2rcQNGOtj

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BADecker
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January 27, 2014, 05:02:56 PM
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Having drugs is NOT the problem. Even using drugs is not the problem. The problem is harming other people or damaging their property.

Laws like drug laws are in place to give authorities excuses to attack people legally. Drug laws don't stop anybody. Rather, they take away peoples' rights to use both drugs and Bitcoin.

If the laws only had to do with judging harm and damage done by the accused, we would be free, and the real bad guys would be behind bars.

As it is, it appears that lawmakers and law enforcement are the real criminals by arresting and persecuting people who haven't harmed anyone.

Smiley

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January 27, 2014, 05:04:17 PM
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That just does not make sense to me. What makes bitcoin so special it deserves arrests? Why not a bank cashing a persons check and then that person buys drugs with the fiat? Or some type of comparison like that?
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January 27, 2014, 05:06:44 PM
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If that is the case, then are they going to arrest everyone that has $100 bills with coke residue on them (which is more than 50% of bills in circulation) if i'm not mistaken
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January 27, 2014, 05:07:15 PM
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That just does not make sense to me. What makes bitcoin so special it deserves arrests? Why not a bank cashing a persons check and then that person buys drugs with the fiat? Or some type of comparison like that?

I dont condone any of this but there's a double standard.  Not a single person at HSBC was arrested for laundering mexican drug cartel money.  Why is there this double standard?
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January 27, 2014, 05:07:50 PM
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That just does not make sense to me. What makes bitcoin so special it deserves arrests? Why not a bank cashing a persons check and then that person buys drugs with the fiat? Or some type of comparison like that?
I was thinking the same thing. Maybe there was an agreement to send and receive (i.e. launder) coins. Huh
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January 27, 2014, 05:09:50 PM
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That just does not make sense to me. What makes bitcoin so special it deserves arrests? Why not a bank cashing a persons check and then that person buys drugs with the fiat? Or some type of comparison like that?
If you read the press release by the DEA, it says they have emails between shrem and BTCKing and that BitInstant KNEW that BTCKing was acting as a conduit for people to buy drugs on SilkRoad.

I highly doubt Jamie Dimon ever emails some customer that says "hey I need to withdraw some of this drug money from a chase branch, ok?"

Wonder how they got all those emails? 

too many grasshoppers, not enough ants
banaltcoin
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January 27, 2014, 05:10:38 PM
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Wink

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..
coinrevo
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January 27, 2014, 05:15:22 PM
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well, thats big news.... I wonder what's next...
howzar
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January 27, 2014, 05:19:07 PM
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That wasn't expected "at least for me" though Everyone knew BitInstant wasn't coming back at least now after there long shutdown I wasn't expecting an arrest for it's owner since it's already closed.
BitcoinBarrel
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January 27, 2014, 05:20:37 PM
 #11

Silk road was a farce from the very beginning. Who would ever join a website whose first online advertisement is this:

http://antilop.cc/sr/img/2011_01_23_silkroad420.wordpress.com.png

What a horrible idea... I really doubt this was started by a guy in Texas.

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January 27, 2014, 05:20:46 PM
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Next stop all the illegal gambling sites and unregistered securities issuers.........
Phinnaeus Gage
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January 27, 2014, 05:28:11 PM
 #13

CEO OF BITCOIN EXCHANGE ARRESTED

The CEO of BitInstant, a Bitcoin exchange, has been arrested at JFK airport and charged with money laundering.

Charlie Shrem, along with a co-conspirator, is accused of selling over $1 million in Bitcoin to Silk Road users, who would then use them to buy drugs and other illicit items.

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

Shrem is a vice chairman at the Bitcoin Foundation. He is listed as a speaker at a Bitcoin conference in Miami that ended Sunday.

Shrem is believed to own a substantial amount of Bitcoin.

Read more: http://www.businessinsider.com/report-ceo-of-major-bitcoin-exchange-arrested-2014-1#ixzz2rcQNGOtj


HOLY FUCKIN' SHIT!!!

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...along with a co-conspirator...

You're not goin' to believe who the co-conspirator is. I know!

yatsey87
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January 27, 2014, 05:34:57 PM
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Wouldn't surprise me if there was some dirty tricks involved like there was with Silk Road.

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January 27, 2014, 05:37:34 PM
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I have to admit I panicked at first, but when I read the criminal complaint from the DoJ I saw that they are alleging that Shrem KNEW what Faiella was doing.

if the feds come after you for unknowingly selling coins to someone who then uses them for something illegal, that is really, really bad for us. If they come after you for knowingly helping someone break the law, well, that should be expected.

The big problem is that the Bitcoin Foundation is about to get a HUGE black eye from this.

Dash--Digital Cash

http://dashpay.io
btbrae
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January 27, 2014, 05:40:27 PM
 #16

Yep there was obviously some shady dealings going on there, that Shrem had a responsibility to report and this is what they will nail him on.

Also it's quite possible they will use cases like this to lay the groundwork so that if you ignore regulations or exempt people from them (like Shrem is accused of doing with Faeilla) that you will be assumed to be participating with illicit activity as they follow the breadcrumbs back to your exchange. In this case it looks like they have proof that he knew.
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January 27, 2014, 05:40:57 PM
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Quote
...along with a co-conspirator...

You're not goin' to believe who the co-conspirator is. I know!

Is it pirateat40? Please tell me it is pirateat40!
Phinnaeus Gage
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January 27, 2014, 05:42:11 PM
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Quote
...along with a co-conspirator...

You're not goin' to believe who the co-conspirator is. I know!

Is it pirateat40? Please tell me it is pirateat40!

Did I say the c-c was male? <hint>

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January 27, 2014, 05:44:18 PM
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Governments and banks should be closed and owners arrested too.

FIAT money is getting used for illegal traffics.
bbit
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January 27, 2014, 05:45:25 PM
 #20

wow. Charlie  70 million dollar finger chopped off?
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