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Thread: Bitcoin Millionaire Charlie Shrem Arrested For Money Laundering, Drug Buying

  1. #1

    Bitcoin Millionaire Charlie Shrem Arrested For Money Laundering, Drug Buying

    https://www.vocativ.com/01-2014/bitc...ey-laundering/

    Feds picked up Shrem, the CEO of BitInstant, at JFK

    A month ago, I spent the evening drinking and hanging out with Charlie Shrem, the Bitcoin millionaire, at his nightclub in New York City.

    Later in the the night, we went up to his apartment, where I spotted a couple of bongs. At some point, Shrem told me “I won’t hire you unless I drink with you or smoke weed with you—that’s a 100 percent fact.” As a reporter, it’s always great to get quotes like these—you don’t hear too many CEOs talk about their love of weed. I stuck it in my story.

    After my profile was published, which included a few mentions of the pot smoking, Shrem sent me a barrage of text messages, begging me to take down any mention of weed smoking. He claimed he no longer smoked weed, and that he was not a proud stoner. He told me it would end his career.

    We refused his request, mostly because we just didn’t think smoking weed was that big of a deal. Plus, it was all true—he had mentioned pot smoking several times in our interview, all of them unprompted.

    Now his paranoia makes a little more sense.

    Today, he was arrested by a coalition of U.S. prosecutors from the Drug Enforcement Agency, the Internal Revenue Service and the U.S. Attorney General’s office. They allege that Shrem, along with a co-conspirator Robert Faiella, “schemed to sell over $1 million in Bitcoins to criminals bent on trafficking narcotics on the dark web drug site Silk Road.”



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  3. #2
    Wow that sucks. Charlie Shrem is a really nice guy. Our drug laws are retarded and as usual, this was only to seize assets.

  4. #3
    Did the feds ever figure out how to turn Silk Road's huge bitcoin wallet into actual USD? Last I read, the feds seized the wallet but couldn't do anything with it. This arrest strikes me as an attempt to force the conversion somehow.
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  5. #4
    “schemed to sell over $1 million in Bitcoins to criminals bent on trafficking narcotics on the dark web drug site Silk Road.”
    What the hell does that even mean?
    "When a portion of wealth is transferred from the person who owns it—without his consent and without compensation, and whether by force or by fraud—to anyone who does not own it, then I say that property is violated; that an act of plunder is committed." - Bastiat : The Law

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  6. #5
    Quote Originally Posted by ClydeCoulter View Post
    “schemed to sell over $1 million in Bitcoins to criminals bent on trafficking narcotics on the dark web drug site Silk Road.”
    What the hell does that even mean?
    I don't know. I can't make heads or tails of it, either.
    But I suspect it roughly translates as, "Shrem's ass is grass" ...


    Frédéric Bastiat (1801-1850)

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  7. #6
    My take :

    "bad guys" bought bitcoin through bitinstant which was later used at Silk Road so the Feds believe Shrem is at fault for allowing that. You know they won't go after a bank for a drug buyer using their ATM. This is probably the establishment trying to find ways to hit bitcoin anyway they can - far too much good press lately.
    “…let us teach them that all who draw breath are of equal worth, and that those who seek to press heel upon the throat of liberty, will fall to the cry of FREEDOM!!!” – Spartacus, War of the Damned

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  8. #7
    He was busted for money laundering. Bitinstant sold BTC to another guy who sold it to anonymous people who used it on silk road. The feds have email from him to this guy where he advised him how to evade money laundering laws.

  9. #8
    I knew someone was bound to get caught laundering their BTC money, eventually. Shrem should have been more careful.
    I'm an adventurer, writer and bitcoin market analyst.

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  11. #9
    Money laundering is just a fancy term used so they can see your $#@!.

    Only HSBC can get away with money laundering.

  12. #10
    Funny, banks like HSBC have been caught money laundering to drug cartels to the toon of billions; but charges are always dropped because they are too big to prosecute. Cute ... Obozo selects who will live and who will die; with that little brain and little pen.

  13. #11
    HSBC didn't keep track of 60 Trillion - with a T. This 1 million "money laundering" is 60 million times smaller.
    HSBC paid less than 2 billion dollar fine. / 60 mil = 33 bucks

    That would seem like a fair fine to me.
    “…let us teach them that all who draw breath are of equal worth, and that those who seek to press heel upon the throat of liberty, will fall to the cry of FREEDOM!!!” – Spartacus, War of the Damned

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  14. #12
    I wonder what the effects of this will be on the company? Will BitInstant be forced to suspend operations again? Will they survive this hit to their leadership?
    I'm an adventurer, writer and bitcoin market analyst.

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  15. #13
    Quote Originally Posted by PaulConventionWV View Post
    I wonder what the effects of this will be on the company? Will BitInstant be forced to suspend operations again? Will they survive this hit to their leadership?
    The company wasn't named in the "criminal" proceedings. Only Shrem and whoever that SR guy is.

    I don't think BitInstant has been running for a while, have they? They have been revamping for a whole new launch for over 6 months now at least.

  16. #14
    Quote Originally Posted by Paladin69 View Post
    The company wasn't named in the "criminal" proceedings. Only Shrem and whoever that SR guy is.

    I don't think BitInstant has been running for a while, have they? They have been revamping for a whole new launch for over 6 months now at least.
    Oh, I wasn't even aware of that. I haven't used them for a long time.
    I'm an adventurer, writer and bitcoin market analyst.

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  17. #15
    Shrem was advising the BTCKing from SR on how to evade money laundering laws but was doing so using unecrypted emails and there was an undercover agent buying from them on SR. FTL talks about it indepth last name right out of the gate, podcast->http://www.freetalklive.com/content/podcast_2014_01_27.



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