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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: dfwgator

Methodists and hornswogglers and con men seems you are being redundant, but you forgot boondogglers. If the government don’t like I need to get a bucket of them Bitcoins.


41 posted on 01/27/2014 10:23:36 AM PST by Foundahardheadedwoman (God don't have a statute of limitations)
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To: Cementjungle; All
Oops, Working link: BitInstant CEO Charlie Shrem Arrested in Silk Road Bitcoin Bust
42 posted on 01/27/2014 10:25:09 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: null and void

Not exactly.


43 posted on 01/27/2014 10:28:07 AM PST by TexasGator
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To: M Kehoe
How can it be money laundering if Bitcoin is not a currency (or U.S. dollars) according to the federal government?

Any cash transaction over $10,000 must be reported to the gubbnet.

If you buy a car for $30,000 cash, the dealership has to report it to the IRS.

44 posted on 01/27/2014 10:28:10 AM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: Errant

They probably shouldn’t physically be in US territory. I don’t know where, maybe Dubai or Singapore or Hong Kong. But not the US.


45 posted on 01/27/2014 10:35:38 AM PST by marron
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To: Yo-Yo; M Kehoe
Looks to me like the danger of messing up (i.e., breaking the law), isn't so much with Bitcoin transactions, but FRN transactions?

Of course real banksters just pay billions in fines using their customers money and get to stay out of jail even when caught directly laundering billions for the drug cartels.

Justice may be blind but her feel for money is excellent.

46 posted on 01/27/2014 10:39:17 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: dfwgator
You have that right, their real crime was in challenging the dollar.
47 posted on 01/27/2014 10:40:02 AM PST by 2001convSVT (Going Galt as fast as I can.)
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"Perhaps. However, in retrospect Charlie's biggest crime was not being CEO of JPM or, at worst, HSBC, where money laundering and other criminal activity is not only encouraged but rewarded with soaring bonuses. The good news is that one can once and for all confirm that when it comes to "Justice" in the US, some - those who deal with legacy status quo mandated and enforced ponzi scheme fiat - are far more equal than anyone who dares to think outside the Fed's printer."

DOJ Finally Going After The Criminal Materminds With Arrest Of 24 Year-Old Bitcoin Exchange Founder [Zero Hedge]

48 posted on 01/27/2014 10:46:32 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: marron
Yep. They'll just go offshore. Innovation is no longer tolerated in the Regulated States of Americae
49 posted on 01/27/2014 10:48:25 AM PST by cizinec ("Brother, your best friend ain't your Momma, it's the Field Artillery.")
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To: tonyinv

50 posted on 01/27/2014 11:55:40 AM PST by B4Ranch (Name your illness, do a Google & YouTube search with "hydrogen peroxide". Do it and be surprised.)
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To: Yo-Yo

Your bank will report any cash transaction over $3000. Deposits or withdrawls.


51 posted on 01/27/2014 11:57:58 AM PST by B4Ranch (Name your illness, do a Google & YouTube search with "hydrogen peroxide". Do it and be surprised.)
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To: Yo-Yo
Hi.

Maybe I'm missing something in your post...

Any cash transaction over $10,000 must be reported to the gubbnet.

If Bitcoin is not "cash," or currency (i.e. U.S. dollar, or the Euro), according to the federal government, how can the transaction be money laundering?

The only thing I can see is that some individual, or a company purchased a product (i.e. Bitcoin, or steel or corn...) with cash.

I know, I'm missing the point.

5.56mm

52 posted on 01/27/2014 3:55:04 PM PST by M Kehoe
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To: M Kehoe
The only thing I can see is that some individual, or a company purchased a product (i.e. Bitcoin, or steel or corn...) with cash.

Yup, and therein lies the rub. Did you read the IRS FAQs I linked to? Here it is again: IRS FAQs Regarding Reporting Cash Payments of Over $10,000 (Form 8300)

Whoever sold the Bitcoins failed to fill out the proper IRS form, and got arrested for it.

53 posted on 01/28/2014 3:35:56 AM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: Yo-Yo
Thanks.

5.56mm

54 posted on 01/28/2014 7:22:15 AM PST by M Kehoe
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