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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.

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maybe but

first they would have to prove you even had the btc. if you do things right they can't prove anything.

looks like he had about 15 million that they wanted and a pissed off judge. also looks like he is out now and never turned over his stash.
from wiki.....

The government charged Armstrong with civil contempt and he remained in prison over 7 years for failure to surrender various assets that may have been purchased with money from the investment fund at the center of the litigation.[1][8] According to the New York Times, "Over the years, Judge Owen would revisit the contempt order every 18 months, guided by the federal statute. He repeatedly said that Mr. Armstrong was motivated by greed and was awaiting his release from jail to retrieve the $15 million that the government said was missing. According to lawyers who worked on the case in the early days, the financier’s headstrong manner irritated Judge Owen almost immediately."[9] On August 17, 2006, he pleaded guilty to one count of conspiracy.[2][10] He was sentenced on April 10, 2007, to five years in prison.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
Rand Paul 2016

re "btc can not be seized"

this is akin to bragging about a new special car that can't be repossessed - just keep it hidden in a cave somewhere.

nice new revolutionary "feature" that applies to, oh, just about everything in the world.

kinda but not really

if you hide your car in a cave somewhere it would not be very useful.

you can have btc at home and use them everyday by just putting in a password.

if you have gold, silver or frn's or really anything else at home easy to use it can be easily seized/stolen.
you could bury your pm's but that's not too safe either. if it's buried in your backyard they/anyone could just dig it up. if you get hit on the head and get amnesia as i think freesilver suggested in another thread then your pm stash is lost forever. you could tell someone where it is but then you have a 50% chance of losing it.
with btc you simple give 2-3 or more people different parts of the password while keeping the private keys yourself. it also helps if they don't all know each other but without the private keys the pw is useless. after many years i'm still trying to figure out the best place to hide my silver/gold. advantage bitcoin.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
Rand Paul 2016

Not really

If the indictment ( is correct, he was laundering money and he got caught. It may have been the bitcoin transactions that tripped him up, especially after the feds got whatever data they got from silk road, but more likely it was the large FRN transactions.

Seizing assets and arresting people are two different things, and if he's got bitcoin assets that are properly secured then they won't be able to seize the bitcoins.

Although ...


i wonder how he got caught? sounds like the gov had a snitch.
i hope shrem put his money where his mouth is and has a encrypted btc stash that the gov can't seize. no doubt all his frn's and any pm's he had laying around or in a bank vault etc have been seized.

snitches get stitches!

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
Rand Paul 2016

evidence? we don't need no stinking evidence!

Who says they have a case? This is just a shakedown and a message to the masses not to think about alternatives to their phony paper money scheme.