US authorities have arrested both Charlie Shrem and Robert Faiella of Bitcoin and they were charged with money laundering.
Charlie Shrem 24, is the CEO of New York base company BitInstant, while Robert Faiella 52, is a virtual currency trader known as BTCKing. US Authorities alleges that the two conspired to sell over $1 million Bitcoins (£603,000) to users of black market website Silk Road. Silk Road was closed down by FBI last year because they were charged of using the site to buy drugs anonymously.
Charlie Shrem was at JFK International Airport in New York on Sunday morning, and Faiella, was
Shrem, 24, was arrested on Sunday morning at New York's JFK International Airport. Faiella, 52, was seized on Monday in his Florida home.
They were accused of conspiring to commit money laundering, and operating an unlicensed money transmitting business.
Shrem is also accused of failing to report Faiella's illegal transactions, violating the Bank Secrecy Act, which requires financial institutions to alert authorities of suspicions of money laundering.
US Attorney for Manhattan Preet Bharara said in a statement: "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.
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