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Bitcoin exchange CEO arrested by Justice Department

The Justice Department said Monday it arrested Charlie Shrem, chief executive officer of the bitcoin company BitInstant, and has charged him with conspiring to commit money laundering and operating an unlicensed money-transmitting business. The DOJ alleges that Shrem, along with "underground Bitcoin exchanger" Robert Faiella, were involved in a scheme to sell more than $1 million in bitcoin to users of the bitcoin-only drug marketplace Silk Road.

http://www.marketwatch.com/story/ceo-of-winklevoss-backed-bi...

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I'd rather take my chances in

I'd rather take my chances in front of my peers, fuck these globalists!!!!!!!!!!!

YOU HEAR THAT NSA!???

Arrest of Bitcoin CEO Sets a New Precedent

As a point of logic, the volume of illicit drug trafficking, weapons smuggling and money laundering conducted in Federal Reserve $100 notes is infinitely greater than what has been transacted in Bitcoin. So, maybe the Department of Justice should be arresting Ben Bernanke?

Ed Rombach

The same Department of Justice

that runs guns from the United States to the Mexican drug cartels? Oh, the irony.

plea bargain anyone?Anyone

plea bargain anyone?Anyone wanna take some guesses, here ill go first

im getting a strong sense, you know from the ether, that*closes eyes, massages temple, listening*......something.....something to do with.....back.....door?....and...and.....bit......coin?

whatever that means

CEO of BitInstant Arrested -- Credit Cards Hacked Again

CEO of BitInstant Arrested -- Credit Cards Hacked Again

BitInstant CEO Charlie Shrem Arrested!

Bitcoin's Shrem Charged in Drug Trafficking Case

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thanks for posting

it looks like a witch hunt to me and i bet he gets off with a slap on the wrist if he pleads out.
what a waste of tax payer money. i hate government thugs. they are the real criminals.

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Thanks for sharing, but the headline is wrong

Bitcoin is not a company, it is just a decentralized information network with strong integrity. There is no CEO for bitcoin, just like there is no CEO for the internet :)

the CEO of a bitcoin company, BitInstant

was arrested. The headline is correct. It didn't say the CEO of Bitcoin itself was arrested

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Government's War on Bitcoin | Mark Thornton

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double standard

HSBC launders billions, gets a fine, CEO keeps his job.

The Red Coats are coming!

Jamie Dimon launders billions for the drug cartels

He just has to give the government a cut of the profits. No jail. The CEO keeps his job.

"Tu ne cede malis, sed contra audentior ito."

Exactly

Just like the mob taking their percent.

beephree

Did they provide proof of

Did they provide proof of their claim?
and the exact nature of the law being broken, and what he is accused of doing, to top it off, did they prove their evidence was aquired legally?

These are the questions i want to become second nature to true journalists, why, because our governments actions have made it a nessecity, if they want to blame someone, blame themselves for the decisions they made assuming no consequencies, trust, theres your consequence, domestic "turmoil" is the result, and folks were but screaming clues to this possibility, the ones you ignored and lost their trust, what does it say, when some of those folks were fighting for folks' rights

read the indictment...

The e-mails in the indictment are pretty damning. I'm speculating but it appears the government initially got the data from the Silk Road server then tracked the bitcoins through the blockchain to BitInstant, subpoenaed e-mails from there and/or safe-mail.

If it's true, the guy was incredibly stupid for doing this. One for just doing it and two for doing it such a sloppy trackable way. He's the Vice Chairman of the Bitcoin Foundation. He should had thought about how his actions could have adversely effected the community.

In the e-mails, he seems to think what he was doing wasn't illegal.

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very sloppy

new tech is coming that will make encryption seamless and the gov won't be able to spy or read anyone's email etc.
they could have used pgp but it can be a pain if you handle lots of email. p2p bitcoin protocol technology like protoshares is working on this seamless encryption as well as, mega, and the piratebay guys and several other bitcoin protocol related entities. by the end of the year the net should be seamlessly encrypted and will soon be decentralized too!

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Looks interesting, thanks.

Looks interesting, thanks. Of course, if someone has access to your computer it doesn't matter if you use encryption. Using virtual machines, Linux and things like Tails would be one way...but maybe even BIOS malware could compromise you. If they really want you to find you, it's hard to stop them...

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I want to know what the

I want to know what the warrant looked like. What was their probable cause? I'm betting a lot that they don't really have squat to back any of the allegations up and they want to use this as an "example" to go after others.

Homeland security statement: patriotism is now considered terrorism.
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Cyril's picture

How outrageous!

How outrageous! For sure, he's got to be the most evil man ever known on earth, folks!

So much money involved! Who else could ever nearly dare to *only start* thinking doing with THAT much?!

And how dared he doing it with accomplice blind machines, at that!

Thank God Devil for our Greater-Good-Plunder-Dept. Of Justice for catching him!

"Cyril" pronounced "see real". I code stuff.

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"To study and not think is a waste. To think and not study is dangerous." -- Confucius

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the people mourn"

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Cyril's picture

I know. Sorry

I know. Sorry, couldn't help.

I only try to preserve enough of my sanity thru helper derision.

Survival instinct, you know.

"Cyril" pronounced "see real". I code stuff.

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"To study and not think is a waste. To think and not study is dangerous." -- Confucius

SteveMT's picture

Bitcoin is for real, since the government is going after them.

Currency other than Petrol Dollars is being used to buy oil. Too many dollars chasing too few products will lead to lots more inflation. With Bitcoin expected to become even more popular in 2014, transactions that are off-the-grid will become commonplace and untraceable. The government cannot have that, so enter the boot of tyranny onto the neck of Bitcoin.

Shouldn't have been a surprise to anyone

who took a few moments to reflect upon BitCoin.

Leges sine moribus vanae

Lose a billion, get taxpayer bailout.Make a billion, go to jail!

Jim Willie [Hattrick Letter by The Golden Jackass] Reveals the Smoking Gun on US Gold :: REHYPOTHECATION!!!

Billionaires routinely cry out as they become paupers. They get saved by shovel-ready bailouts (Shovel is mentioned euphemistically; the noxious odor is quite telling).

A pauper claims to be a billionaire via a new fangled way to count; go directly to jail!

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If the CEO were a State

If the CEO were a State National as defined in the Red Amendment by the People's Awareness Coalition, instead of a US Federal citizen, they couldn't go after him for unlicensed business. I suspect they'd have a tuogh time with the others as well.

~ Engage in the war of attrition: http://pacalliance.us/redamendment/

Is this e-gold redux?

If you don't know the history of e-gold I suggest you read happened to them. E-gold might be a template we can expect to see with any competition.

The short of e-gold:

Treasury says yes it is lawful to do e-gold
Starts to get big
Arrest the executives for money laundering and facilitating child porn
Shut them down

Liberty dollar is a similar story.

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The arrest undermines a favorite bitcoin argument

Bitcoin is better than egold as it is decentralized and there is nothing to seize.
Sorry if they can't seize assets, they'll seize people....

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Could be a possibility. But

Could be a possibility. But IMO this would only make BTC stronger, because the existence of BTC invalidates the notion that government can own your money without your say. If the government actually resorted to torture to counteract this, it would severely undermine their moral authority. It would be the beginning of the end for them. It would only spur the creation of decentralized governance.

Because even if BTC fails, its technology shows for the first time how a decentralized consensus system might work without the need for government. That's an important innovation. This thing is more than just money. This technology is the precursor to the destruction of the state.

It's not just currency. It's a consensus network.

bitcoins were seized?

sounds like you're spreading FUD again. if he had gold and silver or frn's/bank account all of that was most likely and very easily seized/frozen.
if encrypted (password protected), btc can not be seized. egold was not decentralized and had it's assets (gold) seized. that's the beauty of bitcoins and other crypto's.

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Martin Armstrong was jailed for 10 years (or so)

because he wouldn't/couldn't produce some gold he allegedly had (kinda like Sadam's WMDs). If the government decides to seize your bitcoins, they will simply throw you in jail until you disgorge your encryption key, and God help you if you have lost or forgotten it.

Leges sine moribus vanae