Posts Tagged ‘Charlie Shrem’

Bitcoin sails on

Charlie Shrem & Robert Faiella face federal charges; markets shrug it off

by , Jan 27, 2014 | 1:38 pm

Preet Bharara, the US attorney for the Southern District of New York, today¬†announced the unsealing of a federal criminal complaint against Robert Faiella and Charlie Shrem. It’s alleged that Faiella ran an underground bitcoin exchange on Silk Road. Shrem is well-known in the bitcoin community as the CEO of BitInstant and the Vice Chairman of the Bitcoin Foundation.

A copy of the criminal complaint against both men is here.

The complaint alleges that both Shrem and Faiella operated an unlicensed money transmitting and that Shrem specifically facilitated that business through BitInstant. Further to those allegations, Shrem is also charged with violations of the Bank Secrecy Act because of his purported wilfull failure to file reports with the Treasury Department. Finally, both men are charged with money laundering conspiracy under 18 U.S.C. 1956.

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