Shrem gets indictment over money laundering following plea talks

Former vice chairman Charlie Shrem of the Bitcoin Foundation has been recently indicted on money laundering charges with ties to the online marketplace Silk Road. Bloomberg said that Shrem is also the chief executive officer of BitInstant, a Bitcoin exchange company.

The indictment of the prominent Bitcoin evangelist and alleged BTCKing exchange operator Robert Faiella came after discussions regarding plea bargains had wrapped up with federal prosecutors in Manhattan. The two were purportedly engaged in a scheme which involves selling Bitcoins to Silk Road users to make illegal purchases. The office of Manhattan US Attorney Preet Bharara has charged both Shrem and Faiella with two counts of operating an unlicensed money transmitting business, willfully failing to file suspicious activity reports with banking authorities and money laundering conspiracy, according to the indictment dated April 10. Bloomberg noted that Faiella was first arrested in January this year and currently walks free on bond.

According to the news agency, the charges filed against the two had stemmed from Bharara's office's investigation on the sprawling and anonymous black market bazaar. In October last year, Ross William Ulbricht has been formally charged with running Silk Road. Ulbricht allegedly used the alias "Dread Pirate Roberts" to operate the black online marketplace. Bharara's office also charged three more former Silk Road employees in December that year for aiding Ulbricht to run the website. All of the charged have submitted not guilty pleas.

Shrem's lawyer, Marc Agnifilo, said that his client intends to submit a not guilty plea to the indictment following his arraignment in two weeks before US District Judge Jed Rakoff. Lawyer David Braun for Faiella, on the other hand, decided to remain mum about the charges his client is facing.

Bloomberg said that should the two will be found by the court guilty, both could face up to 20 years in prison.

Tags

Charlie Shrem, the Bitcoin Foundation, BTCKing, Robert Faiella, Silk Road, Manhattan US Attorney Preet Bharara

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