This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/technology-25919482
The article has changed 7 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| US makes Bitcoin exchange arrests | US makes Bitcoin exchange arrests |
| (35 minutes later) | |
| The operators of two exchanges for the virtual currency Bitcoin have been arrested in the US. | 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 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. | 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. | |
| Bitcoin exchanges are services that allow users to trade bitcoins for traditional currencies. | |
| 'Feigning ignorance' | |
| James Hunt, from the US Drug Enforcement Agency, said in a statement: "Hiding behind their computers, both defendants are charged with knowingly contributing to and facilitating anonymous drug sales, earning substantial profits along the way. | |
| "Drug law enforcement's job is to investigate and identify those who abet the illicit drug trade at all levels of production and distribution, including those lining their own pockets by feigning ignorance of any wrong doing and turning a blind eye." | |
| Mr Shrem is a founding member and the current vice chairman of the Bitcoin Foundation, a trade group set up to promote Bitcoin as an alternative currency. | |
| Last year, Mr Shrem set up a bar in New York that accepted bitcoins. | |
| BitInstant is one of the largest Bitcoin exchanges on the internet. At the time of publication, the service was inaccessible. | |
| BitInstant's investors include Tyler and Cameron Winklevoss - the twins who previously sued Mark Zuckerberg claiming he had stolen their idea for Facebook |