CEO OF BITCOIN EXCHANGE ARRESTED
5 stars based on
67 reviews
Thank you for signing up. Sorry, it looks like an error occurred. US prosecutors say they charged Robert Faiella and Charlie Shrem, who ran a company allowing people to use cash to buy Bitcoins. US authorities have filed criminal charges against two operators of a Bitcoin exchange, including the head of a company with high-profile investment backers.
A criminal complaint unsealed by officials on Monday said the Bitcoin exchange violated money laundering laws by allowing its users to buy drugs and other illicit goods on the Silk Road underground website. Federal prosecutors said they charged Robert Faiella and Charlie Shrem, who ran a company allowing people to use cash to buy Bitcoins, a virtual currency based on a mysterious computer algorithm. The two are charged with conspiracy to commit money laundering and running an unlicensed money transmitting business, according to a statement from the US Attorney's office in New York.
Shrem, 24, who was also charged with violating the Bank Secrecy Act by failing to file any suspicious activity reports, was bitcoin south africa news cape coral Sunday at John F Kennedy International Airport in New York, officials said. Authorities did not name the company involved in the scheme, but Shrem is chief executive of BitInstant and is a self-described "Bitcoin evangelist" whose venture is backed by Tyler and Cameron Winklevoss, known for a legal spat over the founding of Facebook.
Shrem is also vice chair of the Bitcoin Foundation, a group aimed at promoting use of the crypto-currency. The Winklevoss brothers said in bitcoin south africa news cape coral statement Monday they were "passive" investors in BitInstant and believed it bitcoin south africa news cape coral with all laws.
We fully support any and all governmental efforts to ensure that money laundering requirements are enforced. We will aggressively pursue those who would co-opt new forms of currency for illicit purposes.
The new charges come more than three months after federal bitcoin south africa news cape coral seized the Silk Road website used for drugs, hacker tools and other illegal goods and arrested its alleged mastermind, Ross William Ulbricht, who was said to be "Dread Pirate Roberts.
Ulbricht, who is bitcoin south africa news cape coral trial in New York, has denied the charges and also claims he is not "Dread Pirate Roberts. In November, a message appeared on the social media site Reddit claiming Silk Road had reopened weeks after it was shut down by the FBI.
Bitcoin was invented in the wake of the global financial crisis by a mysterious computer guru using the pseudonym Satoshi Nakamotoby. While Bitcoins have gained in legitimate transactions, the unregulated currency has also been linked to various kinds of criminal activity. Download our free app on the App Store or Google Play for the latest headlines and bitcoin south africa news cape coral news alerts.
Sign up now for the latest news from Australia and around the world direct to your inbox. Follow SBS News to join in the conversation and never miss the latest live updates.
Tax relief for workers, refugees wait longer for welfare. Migrants to wait four years for Centrelink in welfare crackdown. Treasurer defends doubling wait time for refugees accessing job services.
Labor slams 'hoax' tax cuts as Greens say budget will 'turbocharge inequality'. Foreign aid frozen but Pacific to get funding bonanza in budget. Barnaby Joyce's baby son pictured for the first time.
Filipino single mother granted short reprieve on deportation. Skip to content Primary Navigation Show menu Hide menu. Your Email Address Subscribe. A valid email address is required Please provide a valid email address. Please select the editions you would like to sign up to Morning Afternoon Please select at least one edition. Sorry, it looks like an error occurred Please refresh the page and try again.
Updated Updated 28 January News to your inbox Sign up now for the latest news from Australia and around the world direct to your inbox.
