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US makes Bitcoin exchange arrests
BBC ^ | 27 January 2014 | Dave Lee

Posted on 01/27/2014 9:25:02 AM PST by Errant

The operators of two exchanges for the virtual currency Bitcoin have been arrested in the US.

The Department of Justice said Robert Faiella, known as BTCKing, and Charlie Shrem from BitInstant.com have both been charged with money laundering.

The authorities said the pair were engaged in a scheme to sell more than $1m (£603,000) in bitcoins to users of online drug marketplace the Silk Road.

The site was shut down last year and its alleged owner was arrested.

Mr Shrem was arrested on Sunday at New York's JFK airport. He was expected to appear in court on Monday, prosecutors said.

Mr Faiella was arrested on Monday at his home in Cape Coral, Florida.

(Excerpt) Read more at bbc.co.uk ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events; US: Florida
KEYWORDS: bank; bitcoin; bitinstant; btcking; capecoral; charlieshrem; dojbitcoin; money; robertfaiella; shrem
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To: TomGuy
Bitcoin seems to be a direct challenge to ‘legal tender’ and few, if any, nations are going to let that happen.

Not without a fight I'm assuming. But bitcoin and all crytocurrencies in general have the ability to go viral and to tunnel through just about anything put in place to stop it. Its popularity with regular people in every country makes it into a powerful force even governments in collusion will difficult to deal with.

21 posted on 01/27/2014 9:47:23 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Moonman62
A sad day for anarchists, libertarians, and drug addicts.

Did the dollar collapse?

22 posted on 01/27/2014 9:48:31 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: varyouga
They were taking 'cash' from the 'drug' dealers. In return, they sold them bitcoins.

For all the support of bitcoin, they do love cash.

23 posted on 01/27/2014 9:48:56 AM PST by Theoria (End Socialism : No more GOP and Dem candidates)
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To: Errant
Government is the greediest, most corrupt and murderous force on Earth.

And government likes to project its own vices onto the peasants.

24 posted on 01/27/2014 9:49:16 AM PST by E. Pluribus Unum (The only way women can "have it all" is if men aren't allowed to have anything.)
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To: Errant
A sad day for anarchists, libertarians, and drug addicts.

You left out....rustlers, cut throats, murderers, bounty hunters, desperados, mugs, pugs, thugs, nitwits, halfwits, dimwits, vipers, snipers, con men, Indian agents, Mexican bandits, muggers, buggerers, bushwhackers, hornswogglers, horse thieves, bull dykes, train robbers, bank robbers, ass-kickers, s----kickers and Methodists.

25 posted on 01/27/2014 9:50:05 AM PST by dfwgator
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To: varyouga

Interesting Indeed. This will send shock waves through the Bitcoin community, unless actual “real money” laundering or conspiracy laws were broken.


26 posted on 01/27/2014 9:51:42 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: dfwgator

lolol


27 posted on 01/27/2014 9:52:42 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: E. Pluribus Unum

Yeah, and kind of why I’m hoping one day, the control of the money supply (crytocurrency might provide that means) somehow finds its way back under the control of the people of this world and away from the governments and banksters...


28 posted on 01/27/2014 9:56:33 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: M Kehoe

It is what they say it is and they will punish anyone who says otherwise because... How are you going to stop them?


29 posted on 01/27/2014 9:58:09 AM PST by Dead Corpse (I will not comply.)
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To: Lazamataz
Looks like the Federal Reserve System has weighed in.

Yep, they've gotten themselves a real "bull" in charge now.

30 posted on 01/27/2014 9:59:43 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: dfwgator

That’s HEDley!


31 posted on 01/27/2014 10:00:22 AM PST by Dead Corpse (I will not comply.)
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To: TomGuy
The old is new again ... Tenino Wooden Money
32 posted on 01/27/2014 10:00:50 AM PST by Cboldt
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To: TomGuy

Itex?

It’s stil around. I’ve had stock in it for 15 yrs.

http://en.wikipedia.org/wiki/Itex_Corporation


33 posted on 01/27/2014 10:01:53 AM PST by Justa
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To: Errant

If that is the case, the both the treasury department, federal reserve, and EVERYONE who works in the banking and financial sectors need to be immediately arrested and charged with money laundering, conspiracy to commit wire fraud, collusion, and drug trafficking. Where do you think all of those drug DOLLARS originate from? If the feds can go after a currency for this perceived wrong, then the entire US financial sector is just as guilty for aiding and abetting lawbreakers, by financing their drug transactions.


34 posted on 01/27/2014 10:03:09 AM PST by factoryrat (We are the producers, the creators. Grow it, mine it, build it.)
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To: factoryrat

Great point. Surely there is something else that they’re basing these charges on?


35 posted on 01/27/2014 10:08:35 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

I’m not sure where the expression ‘cryptocurrency’ came from, but Bitcoin is the polar opposite of a cryptocurrency.

Anybody using bitcoin is allowed to download and examine the books on how much bitcoin actually exists.

As such, the only cryptocurrencies I can think of are the US Dollar, the Yuan, and other fiat currencies.

Oh, and HSBC has now restricted ‘large’ withdrawals (greater than 3,000 Yuan).

Bitcoin is a mortal threat to fiat currencies, in that every bitcoin user knows to the last bitcoin how much bitcoin is out there. The fluctuations you seen in bitcoin value ISN’T fluctuations in bitcoin, its fluctuations in the currencies being compared to it.

The only way to stop bitcoin is to hit the kill switch - take out the internet. Do that, and bitcoin is worthless, until the net is restored.


36 posted on 01/27/2014 10:08:52 AM PST by RinaseaofDs
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To: RinaseaofDs
I’m not sure where the expression ‘cryptocurrency’ came from It refers to the encrypted hashs that provide security and validation. Indeed, its books are open, not hidden like some central bank books are.
37 posted on 01/27/2014 10:12:30 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: varyouga

We are already past that point. Bartering for products and services between businesses or businesses and customers is already considered taxable income by the IRS.

The only reason they haven’t gone after individual bartering is because there is no way to do it. I’m sure they (and the NSA) are working on it though.

With every drop of the statist’s hammer we get closer to the point where the people realize that we are ALREADY in a civil war and have always been.


38 posted on 01/27/2014 10:13:26 AM PST by tonyinv (I no longer care enough to even say 'I told you so')
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To: Errant

This is more about the online drug sales (Silk Road) than about Bitcoins. The Feds are still mopping up the people who were involved one way or the other in that very big operation.


39 posted on 01/27/2014 10:17:09 AM PST by Cementjungle
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To: Cementjungle; All
More news with a statement for the US Attorney's office in NY (Scroll down).

http://www.coindesk.com/bitinstant-ceo-charlie-shrem-arrested-silk-road-bitcoin-bust/

40 posted on 01/27/2014 10:21:06 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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