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Two Bitcoin exchange operators charged in money laundering scheme

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Brainerd Dispatch
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Brainerd MN 506 James St. / PO Box 974 56401

NEW YORK, Jan 27 (Reuters) - U.S. prosecutors on Monday announced charges against two men operating Bitcoin exchange businesses for attempting to sell $1 million in the digital currency to users of the underground black market website Silk Road, which was shut down by authorities in September.

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The U.S. Attorney's office in Manhattan said in a statement that authorities arrested Charlie Shrem, chief executive officer of the exchange BitInstant.com, on Sunday and Robert Faiella, who ran an underground Bitcoin exchange called BTCKing, on Monday. The two were charged with conspiring to commit money laundering and operating an unlicensed money transmitting business.

Shrem is also vice president of the main Bitcoin-focused trade group, the Bitcoin Foundation, according to the foundation's website and Shrem's LinkedIn profile.

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Denton (Denny) Newman Jr.
I've worked at the Brainerd Dispatch with various duties since Dec. 7, 1983. Starting off as an Ad Designer and currently Director of Audience Development. The Dispatch has been an interesting and challenging place to work. I'm fortunate to have made many friends, both co-workers and customers.
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