CEO Of Bitcoin Co. Charged Over Silk Road Conspiracy

Law360, New York (January 27, 2014, 3:17 PM EST) -- Federal prosecutors on Monday charged the CEO of BitInstant, the bitcoin exchange company backed in part by Cameron and Tyler Winklevoss, with money laundering in connection with an alleged scheme to sell over $1 million in bitcoin to users of the now-defunct black market website Silk Road.

BitInstant head Charlie Shrem, 24, of New York and bitcoin exchanger Robert M. Faiella, 52, of Cape Coral, Fla., were arrested and charged with conspiracy to commit money laundering and operating an unlicensed money transmitting business.

Prosecutors claim that...
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