27 Jan '14, 5pm

Winklevoss-Funded Bitcoin Startup CEO Arrested In Silk Road Investigation

Winklevoss-Funded Bitcoin Startup CEO Arrested In Silk Road Investigation

The Department of Justice announced Monday that it’s arrested Charlie Shrem, CEO of the Bitcoin payment processor BitInstant and vice chairman of the Bitcoin Foundation, as well as Robert Faiella, an alleged underground Bitcoin exchanger, and accuses the two of selling more than $1 million worth of bitcoins to users of the Silk Road anonymous black market for drugs. Shrem was arrested at JFK airport in New York Sunday, and Faiella at his home in Cape Coral, Florida. Both have been charged with money laundering and operating an unlicensed money transmitting business, and BitInstant appears to be offline as of Monday morning.

Full article: http://www.forbes.com/sites/andygreenberg/2014/01/27/wink...

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