The CEO of Bitinstant was arrested at JFK airport Sunday and charged with money laundering, according to Business Insider. Charlie Shrem, 24, of New York, New York, along with a co-conspirator, is accused of trading more than $1 million in bitcoins to Silk Road users, who then used the bitcoins to purchase illicit items, including drugs.
Shrem, who is also vice chairman of the Bitcoin Foundation, and Robert Faiella, an alleged underground Bitcoin exhanger, are among the widening circle of arrests in the case, according to Forbes Magazine. Bitcoin payment processor BitInstant was Shrem's startup and had received $1.5 million in start-up funding "in an investment round led by Bitcoin moguls Cameron and Tyler Winklevoss," according to Forbes.
To read the Business Insider article, click here. To read the Forbes article, click here.
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