Subscribe free to our newsletters via your
. Space Industry and Business News .




TRADE WARS
Bitcoin dealers charged in US with money laundering
by Staff Writers
Washington (AFP) Jan 27, 2014


US authorities Monday filed criminal charges against two operators of a Bitcoin exchange, including the head of a company with high-profile investment backers.

A criminal complaint unsealed by officials said the Bitcoin exchange violated money laundering laws by allowing its users to buy drugs and other illicit goods on the Silk Road underground website.

Federal prosecutors said they charged Robert Faiella and Charlie Shrem, who ran a company allowing people to use cash to buy Bitcoins, a virtual currency based on a mysterious computer algorithm.

The two are charged with conspiracy to commit money laundering and running an unlicensed money transmitting business, according to a statement from the US Attorney's office in New York.

Shrem, 24, who was also charged with violating the Bank Secrecy Act by failing to file any suspicious activity reports, was arrested Sunday at John F. Kennedy International Airport in New York, officials said.

Authorities did not name the company involved in the scheme, but Shrem is chief executive of BitInstant and is a self-described "Bitcoin evangelist" whose venture is backed by Tyler and Cameron Winklevoss, known for a legal spat over the founding of Facebook.

Shrem is also vice chair of the Bitcoin Foundation, a group aimed at promoting use of the crypto-currency.

The Winklevoss brothers said in a statement Monday they were "passive" investors in BitInstant and believed it complied with all laws.

"When we invested in BitInstant in the fall of 2012, its management made a commitment to us that they would abide by all applicable laws -- including money laundering laws -- and we expected nothing less," said the statement.

"Although BitInstant is not named in today's indictment of Charlie Shrem, we are obviously deeply concerned about his arrest...and will do everything we can to help law enforcement officials. We fully support any and all governmental efforts to ensure that money laundering requirements are enforced."

Faiella, 52, was arrested at his home Monday in Cape Coral, Florida, according to officials.

"As alleged, Robert Faiella and Charlie Shrem schemed to sell over $1 million in Bitcoins to criminals bent on trafficking narcotics on the dark web drug site, Silk Road," said US Attorney Preet Bharara said in a statement.

"Truly innovative business models don't need to resort to old-fashioned law-breaking, and when Bitcoins, like any traditional currency, are laundered and used to fuel criminal activity, law enforcement has no choice but to act. We will aggressively pursue those who would coopt new forms of currency for illicit purposes."

The new charges come more than three months after federal officials seized the Silk Road website used for drugs, hacker tools and other illegal goods and arrested its alleged mastermind, Ross William Ulbricht, who was said to be "Dread Pirate Roberts."

Ulbricht, who is awaiting trial in New York, has denied the charges and also claims he is not "Dread Pirate Roberts."

In November, a message appeared on the social media site Reddit claiming Silk Road had reopened weeks after it was shut down by the FBI.

Bitcoin was invented in the wake of the global financial crisis by a mysterious computer guru using the pseudonym Satoshi Nakamotoby. While Bitcoins have gained in legitimate transactions, the unregulated currency has also been linked to various kinds of criminal activity.

The Winklevoss twins, while not among the Facebook founders, claimed Mark Zuckerberg stole their idea, and reached a 2008 settlement that got them and classmate Divya Narenda $20 million in cash and $45 million worth of stock.

.


Related Links
Global Trade News






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








TRADE WARS
Indian authorities threaten to demolish Coke plant
Lucknow, India (AFP) Jan 24, 2014
Authorities in northern India said Friday they would demolish an "illegal" Coca-Cola bottling plant at the centre of protests over accusations it is extracting too much groundwater. The local revenue administration ordered demolition of the Mehdiganj plant last month in Varanasi in the state of Uttar Pradesh, saying it was built on village council land and was "illegal". The village admi ... read more


TRADE WARS
Google says buys artificial intelligence firm DeepMind

'Gears of War' videogame will stay in Xbox arsenal

MDA awarded key development work for exploration and communications

Lenovo to buy IBM's low-end server business for $2.3bn

TRADE WARS
Boeing Transmits Protected Government Signal Through Military Satellite

Boeing Transmits Protected Government Signal Through Military Satellite

Fifth MUOS Completes Assembly, Enters System Test

Northrop Grumman Supports US Marine Corps Command, Control and Communications Facility for Tactical Air Operations

TRADE WARS
45th Space Wing Supports NASA Launch

Athena-Fidus receives its "kick" for Arianespace's upcoming Ariane 5 launch

ILS Proton To Launch Yamal 601

Turkish Telecoms Satellite to Launch From Baikonur Feb. 15

TRADE WARS
India to launch three navigation satellites this year

NGC Wins Contract For GPS-Challenged Navigation and Geo-Registration Solution

20th Anniversary of Initial Operational Capability of the GPS Constellation

Northrop Grumman and Trex Enterprises to Introduce Celestial Navigation to Soldier Precision Targeting Laser Systems

TRADE WARS
S. Korea to finalise F-35 jet fighter deal this year

Canada sticking with controversial Cyclone helicopters

Novel technology reveals aerodynamics of birds flying in a V-formation

Boeing Starts Assembly of Final KC-46A Test Aircraft

TRADE WARS
Dutch hi-tech group ASML profits dip despite record sales

2-proton bit controlled by a single copper atom

New Technique for Probing Subsurface Electronic Structure

Fastest organic transistor heralds new generation of see-through electronics

TRADE WARS
NASA Set For A Big Year In Earth Science With Five New Missions

Signed, Sealed and Delivered: New NASA Video Shows GPM's Journey to Japan

China's pollution seen from space

Charles River Analytics Develops Satellite Image Processing System for NASA

TRADE WARS
US study finds pesticide may raise risk of Alzheimer's

Loss of biodiversity limits toxin degradation

US consumers to blame for some air pollution from China

Waterfowl poisoning halved by lead shot prohibition




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement