The CEO of a bitcoin exchange has been arrested on charges of selling bitcoins to be used to buy and sell BitInstant's website is currently down. Shrem was the CEO of BitInstant until it shut down in July For a time he also served as the company's chief compliance officer. A BitInstant user began reselling bitcoin on Silk Road, an underground marketplace known for illegal activity, Shrem explains to Sale. BIGGEST BET EVER PLACE DES TENDANCES

A look at rebuilt drug bazaar Silk Road The Winklevoss twins said in an emailed statement that they are "deeply concerned" about Shrem's arrest. The black market website only let people buy and sell goods with bitcoins, and Faiella made a business of exchanging cash for bitcoins. That's where Shrem's bitcoin exchange came in handy. Shrem sold Faiella the bitcoins that eventually made their way to drug buyers and sellers, according to an investigation by the Internal Revenue Service.

Though Shrem knew where the money ultimately ended up, he never reported it to the Treasury Department, according to the U. Federal documents cite email exchanges between Shrem and Faiella that show how close they worked together. Although Shrem never knew Faiella by his actual name -- only by BTCKing -- the young executive helped the older man avoid trouble.

For example, when Faiella's frequent and large cash deposits raised eyebrows at a cash processing company, Shrem advised Faiella on how to avoid sounding alarms. Faiella eventually ended the partnership with Shrem. To gather evidence against Shrem and Faiella, federal agents posed as Silk Road users and bought bitcoins from Faiella.

According to the court documents, agents then traced the money they paid, which led them to Faiella and eventually Shrem. Stocks up! If world markets on Monday take their cue from Friday's melt up on Wall Street it will round off what has, in many ways, been a truly remarkable month.

Investors face another likely bumper U. The company now expects net income to decline in the high-teens to mids percentage range this year, down from its previous outlook of a high-teens percentage drop. It also said it would continue to provide service to Jeep customers in China.

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Brian Krebs, a security researcher and journalist who first broke the story , said the arrests likely mark the first time that state law has been used by investigators to go after individuals linked to the alternative currency, which exists only in a digital realm and allows for near-perfect anonymity.

Investigators reportedly set their sights on Espinoza and Reid after coming across their profiles on localbitcoins. But when those queries failed to return a positive result, the investigators arranged for further transactions in order to net harsher charges against Espinoza. When Espinoza agreed to participate in the deal, he was taken into custody. Only miles away, investigators were operating a near-identical sting. Again, though, the undercover agent claimed the bitcoins being transferred would be used to purchase illegally obtained credit card numbers, this time from the batch compromised late last year in the high-profile breach against American retailer Target.

Risking this kind of penalty is never worth it. Discussing your tax obligations with an experienced Roseville tax attorney before filing may help you avoid serious consequences. Do prisoners use Bitcoin? Prisoners may have commissary accounts, which the authorities control to insure security within the institution.

Money coming into the institution from friends or family gets deposited to these accounts. Bitcoins really are digital currency. Will Coinbase refund if scammed? Coinbase will issue a refund only in two situations when their error caused: An unauthorized transaction from your account.

An incorrect transaction from your account. How many bitcoins are left? They did this by putting a cap in the algorithm, meaning computers will no longer be able to solve the equation — mine Bitcoin — once 20,,, are mined. With the current total of just over Are bitcoins illegal? Despite its use for buying goods and services, there are still no uniform international laws that regulate Bitcoin.

Many developed countries allow Bitcoin to be used, such as the U. Several countries have made it illegal to use Bitcoin, including China and Egypt. How many bitcoins does it take to become a millionaire?

Is Bitcoin overheated? Bitcoin — Caution, the crypto sector is getting a bit overheated in the short-term! Thus, the outperformance of Bitcoin compared to almost all other asset classes continued mercilessly. How many Mt. Gox creditors are there?

Gox was one of the largest exchanges in the world during the early days of crypto. How did Mt. Gox get hacked?

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