Former CEO of Bitcoin Site Pleads Guilty To Aiding Silk Road Deals

silk-roadThe former CEO of a major Bitcoin exchange has pleaded guilty along with one of his customers to enabling drug deals on the online drug portal Silk Road.

Charlie Shrem, the former CEO of BitInstant, and bitcoin seller Robert Faiella, were arrested earlier this year and charged with exchanging over $1 million in Bitcoins that they both knew would be used to buy illicit drugs and paraphernalia on Silk Road. Faiella, 54, reportedly obtained Bitcoins through Shrem’s site and then sold them at a profit to users on Silk Road.

To make matters worse, Shrem, 24, also served as the compliance officer for BitInstant and was therefore responsible for ensuring that his company followed the law. Authorities claimed that Shrem personally pronounced Faiella’s orders and even gave him a discount on high-volume trades. Read more “the fix”…

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