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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....

Things are really starting to heat up regarding the Silk Road marketplace (as if things already weren’t hot enough). Following the start of Ross Ulbricht’s trial last week, a bitcoin trader has been sentenced to four years in prison due to his unveiled connections to the underground illegal market. Robert M. Faiella (who often operated under the code name “BTCKing”) has recently pled guilty to operating an illegal money transmission business.  Often times, the business saw to the exchange of fiat currency for bitcoins, which would then be used to purchase drugs and other items from Silk Road. Faiella, a...