BitInstant CEO and Bitcoin Foundation Vice Chairman Charlie Shrem Arrested in New York

Charlie Shrem was formally indicted on April 10th. Three months ago, Charlie Shrem, the former Vice Chairman of the Bitcoin Foundation and CEO of the now-defunct BitInstant, was arrested in New York on charges of money laundering and acting as an unlicensed money transmitter. The allegations against Shrem were that he laundered over $1 million in bitcoins for users of Silk Road - the illegal online drug marketplace that was shut down by the FBI back in October 2013, and that he wilfully neglected to report unlawful transactions that were conducted through BitInstant by Robert Faiella, a....

Once the Vice Chairman of the Bitcoin Foundation and CEO of BitInstant, Charlie Shrem's fall from grace, began at JFK airport in New York where police arrested him on charges of money laundering and acting as an unlicensed money transmitter. Authorities alleged Shrem laundered more than $1 million. Shrem faced a maximum sentence of 30 years in prison. Shrem's true story starts with BitInstant and his nightlife lifestyle via his Bitcoin accepting club in New York. Shrem was ultimately sentenced to two years in prison for Silk Road related charges. U. S. District Judge Jed Rakoff in....

Following the news on Monday that BitInstant CEO Charlie Shrem was arrested in New York on suspicion of selling over $1 million worth of bitcoin to users of the now-defunct Silk Road online drug marketplace, and today's news Shrem has been released on bail, the Bitcoin Foundation has released a statement on the allegations against the 24-year-old. "We are both surprised and saddened to learn of these allegations. The foundation does not condone illegal activities and values transparency, accountability and a high level of responsibility towards its members and overall community," the....

Bitcoin advocate and entrepreneur Charlie Shrem was sentenced to two years in prison on Friday for indirectly helping to send $1 million in the digital currency to the Internet black-market bazaar Silk Road, the Chicago Tribune reports. Shrem was also ordered by U. S. District Judge Jed Rakoff in Manhattan to forfeit $950,000 after pleading guilty in September to aiding and abetting an unlicensed money transmitting business. Judge Rakoff said: "[Shrem] was knowingly, willfully, and to some extent excitedly, even passionately involved in activity that he knew was a serious violation of the....

Another day, another Bitcoin entrepreneur charged with fraud. This time it was Charlie Shrem, the former vice chairman of the Bitcoin Foundation, CEO of BitInstant, and one of the most recognized people in the Bitcoin community, has been officially indicted by a federal grand jury in New York on April 10. Shrem has been formally accused of laundering over $1 million dollars in bitcoins by funneling funds for users on the infamous Silk Road website whose founder, Ross William Ulbricht, is also facing federal charges. Only three months ago, Shrem was arrested in New York on charges of acting....