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supersourav99 28-01-14 02:18 PM

Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
BitInstant CEO Charlie Shrem has been charged with laundering money for customers of online drug bazaar Silk Road. U.S. government agents have arrested BitInstant CEO Charlie Shrem on charges that he used his prominent Bitcoin exchange to launder money for customers of the online drug bazaar: Silk Road. Shrem's exchange, based in New York City, lets people buy bitcoins locally at more than 700,000 locations in the United States, as well as Brazil, Russia and elsewhere. He is also vice chairman of the Bitcoin Foundation, one of the currency's biggest advocates. The police state that Shrem helped a man called Robert Faiella sell more than $1 million worth of Bitcoins to Silk Road customers. Faiella allegedly ran an underground Bitcoin exchange using the alias BTCKing. Both have been arrested and are charged with conspiracy to launder money and operating an unlicensed money transmitting business. Additionally, Shrem faces charge for not tipping off the feds to what was allegedly going on. Cameron and Tyler Winklevoss, who invested $1.5 million in BitInstant last year to help it get off the ground, said in a joint statement: "When we invested in BitInstant in the fall of 2012, its management made a commitment to us that theywould abide by all applicable laws - including money laundering laws - and we expected nothing less." The official BitInstant website has been brought down, and it is uncertain how this ruling will affect its customers.

Source :- Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins | The Escapist

ManISinJpr 28-01-14 04:16 PM

Re: Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
This was bound to happen !! if private firms or individuals can make a currency then these things will be mostly used by the underworld !!

Good that he was caught...
Lets wait for more catches..

MadDog 28-01-14 04:30 PM

Re: Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
will that make bitcoin invalid very soon??

dedasdude 28-01-14 04:33 PM

Re: Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
that sounds like a fake name....

supersourav99 28-01-14 05:02 PM

Re: Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
Quote:

Originally Posted by dedasdude (Post 912338)
that sounds like a fake name....

Maybe they're using reference names ... But imo the news is real for sure!!

realandR3cys 28-01-14 06:30 PM

Re: Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
Never a dull moment in Bitcoin. Sigh.
So, they're gonna do what they did to HSBC? Just fine and move along? Or, let me guess, they're gonna get screwed big time and will be serving prisons.

Don't get me wrong. I hate BTC, but what HSBC did and still got away was much more.
What Shrem sold was $1million worth of BTC. But HSBC? They gave billions to drugs, crimes, etc. And still without a single charge on them. And their CEO's still got away unarrested.

Much double standards. Such hipocrisy. wow.

dedasdude 29-01-14 06:58 PM

Re: Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
Quote:

Originally Posted by realandR3cys (Post 912359)
Never a dull moment in Bitcoin. Sigh.
So, they're gonna do what they did to HSBC? Just fine and move along? Or, let me guess, they're gonna get screwed big time and will be serving prisons.

Don't get me wrong. I hate BTC, but what HSBC did and still got away was much more.
What Shrem sold was $1million worth of BTC. But HSBC? They gave billions to drugs, crimes, etc. And still without a single charge on them. And their CEO's still got away unarrested.

Much double standards. Such hipocrisy. wow.

hsbc obviously pulled some strings and threw some cash around. its obvious.
justice is just a BS word fed to commoners to keep people from freaking out :p

realandR3cys 30-01-14 01:29 AM

Quote:

Originally Posted by dedasdude (Post 912554)
hsbc obviously pulled some strings and threw some cash around. its obvious.
justice is just a BS word fed to commoners to keep people from freaking out :p

Sad. If Shrem could pay billion dollar fines like HSBC, he wouldn't be in prison either.

Moral of the story: If you're the size of HSBC, your CEO won't be arrested.

Heavenrider 30-01-14 07:44 PM

Re: Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
well mining for me is just a way to buy small stuff on the interwebs, and pooled mining is very profitable. i bought bitcoins when they were around $100 , i bought a shit load of games on steam when they went up to $1300 ..lets hope people dont screw this up cause i like bitcoins, so convenient :)

bssunil 30-01-14 08:04 PM

Re: Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
You hit a jackpot I think.

Heavenrider 30-01-14 08:13 PM

Re: Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
Quote:

Originally Posted by bssunil (Post 912775)
You hit a jackpot I think.

lol i bought like half a bitcoin in the beginning , now i just get it free from pooled mining :3
-_-

TNT 30-01-14 09:18 PM

Re: Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
Quote:

Originally Posted by realandR3cys (Post 912359)
Never a dull moment in Bitcoin. Sigh.
So, they're gonna do what they did to HSBC? Just fine and move along? Or, let me guess, they're gonna get screwed big time and will be serving prisons.

Don't get me wrong. I hate BTC, but what HSBC did and still got away was much more.
What Shrem sold was $1million worth of BTC. But HSBC? They gave billions to drugs, crimes, etc. And still without a single charge on them. And their CEO's still got away unarrested.

Much double standards. Such hipocrisy. wow.


Why do you hate Bitcoins? They are just some numbers.

Bitcoins eliminate the need for banks or money transferring agencies. If enough people embraced it, banks like HSBC will have to shut shop. Criminals cannot snatch away memorized numbers. I see some hypocrisy in your statements!

:yawn:

realandR3cys 30-01-14 10:39 PM

Quote:

Originally Posted by TNT (Post 912798)
Why do you hate Bitcoins? They are just some numbers.

Indeed. They're just numbers whose value traction goes like a rollercoaster ride.

Quote:

Originally Posted by TNT (Post 912798)
I see some hypocrisy in your statements!

Which part?
Wait, so you think money laundering in BTC will not take place further after Shrem's arrest? So, you think after this every other drug dealers in Silk Road will abide by the laws now? Fear the polize? BTC, the holy shrine?
I seriously don't see a logic behind your argument.

vijayninel 01-02-14 01:42 PM

Re: Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
Ironically all this is giving Bitcoin more legitimacy as a "currency" which will attract attention of authorities and regulators.

"May you come to the attention of those in authority"
- Chinese Curse.

ManISinJpr 01-02-14 05:44 PM

Re: Bitcoin Exchange CEO Arrested For Laundering Drug Money With Bitcoins
 
If this was in USA then there are many CEO's who have been put behind bars for leser crimes.. not even crimes but lesser frauds and stuff.. Like Rajat, if you remember, was jailed for just some phonecall to his friend in the charges of insider trading.
Quote:

Jeff Skilling, former CEO of Enron
Serving 24 years for fraud, insider trading, and other crimes related to the collapse of Enron
Bernie Ebbers, former CEO of WorldCom
Serving 25 years for accounting fraud that cost investors over $100 billion
Dennis Kozlowski, former CEO of Tyco Serving 8 to 25 years for stealing $134 million from Tyco
John Rigas, former CEO of Adelphia Communications Serving 25 years for bank, wire, and securities fraud related to the demise of Adelphia
Sanjay Kumar, former CEO of Computer Associates Serving 12 years for obstruction of justice and securities fraud
Walter Forbes, former CEO of Cendant Serving 12 years for fraud
Richard Scrushy, former CEO of HealthSouth Serving 7 years for bribery and mail fraud
Joseph Nacchio, former CEO of Qwest Communications
Serving 6 years for insider trading
Sam Waksal, former CEO of ImClone Served 7 years for securities fraud (released last year)
Martin Grass, former CEO of Rite Aid Served 6 years for fraud and obstruction (just released this year)
Quote:

Originally Posted by realandR3cys (Post 912632)
Moral of the story: If you're the size of HSBC, your CEO won't be arrested.


Yes this a serious curse.. and the results maybe horrendous.
Quote:

Originally Posted by vijayninel (Post 913056)
"May you come to the attention of those in authority" - Chinese Curse.



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