Bitcoin Exchange CEO Charged With Laundering $1 Million Through Silk Road

from The CEO of Bitcoin exchanger BitInstant has been arrested and charged with money laundering over allegations that he and another man sold more than $1 million in Bitcoins to buyers and sellers of drugs on the underground drug site Silk Road. Charlie Shrem (pictured), 24, who ran BitInstant out of New York, is charged, along with Robert Faiella, with conspiracy to commit money laundering and operating an unlicensed money transmitting business, according to the complaint (.pdf), filed in the Southern District of New York. The charges come three months after the underground drug emporium was shuttered by law enforcement and its alleged founder, Ross Ulbricht, arrested.

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