Bitinstant director gets two years in prison for ‘laundering’ with bitcoin




Charlie Shrem, formerly director of the bitcoin-exchange Bitinstant, has been sentenced to a prison term of two years. He was engaged in the sale of bitcoins that were intended for illegal transactions via the Silk Road.

The court in New York ruled that Shrem two years in jail for his illegal activities should the bitcoin market, as reported Bloomberg. He had earlier this year said guilty of ‘laundering’ money by providing bitcoins for transactions on Silk Road, a famous black market that is accessible sold through the Tor network and where, among other drugs and weapons.

Shrem told sorry to have his actions and asked the court to release him so that he can protect others not to make the same mistakes. The court did not agree. The prison should be that legislation on such practices should be taken seriously clear, according to the court.

The 24-year-old director of the now defunct Bitinstant yielded bitcoins to the 52-year-old Robert Faiella, which also must account for the court. Faiella used the bitcoins for illegal transactions on Silk Road and has now also been declared guilty. Shrem is accused that he knew that were intended for illegal activities bitcoins has delivered.



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