Bitcoin CEO indicted! The U.S. Attorney for New York has issued a criminal indictment of two top officials of Bitcoin Exchange Company who are alleged to have participated in a scheme to launder bitcoins used in Silk Road Drug trafficking.
The U.S. Attorney states: “As alleged, Robert Faiella and Charlie Shrem schemed to sell over $1 million in Bitcoins to criminals bent on trafficking narcotics on the dark web drug site, Silk Road. Truly innovative business models don’t need to resort to old-fashioned law-breaking, and when Bitcoins, like any traditional currency, are laundered and used to fuel criminal activity, law enforcement has no choice but to act. We will aggressively pursue those who would coopt new forms of currency for illicit purposes.”
We previously covered the link between bitcoins and the underworld crime scene of the Silk Road. The Silk Road and the “dark web” is identified with drug trafficking and human trafficking. Read: The Dark Web
In recent weeks, Wall Street and CNBC continue to hype bitcoins to the investment community and businesses, urging companies to accept bitcoins as a new form of digital currency, the U.S. Attorney is showing the true use and origins of the Bitcoin craze. Read more here.