NEW YORK – U.S. prosecutors say two men are charged with conspiring to commit money laundering by selling more than $1 million in Bitcoins to users of the black market website Silk Road, which lets users buy illegal drugs anonymously.
Authorities say Charlie Shrem – CEO of Bitcoin exchange BitInstant – was arrested Sunday at New York’s Kennedy Airport while Robert Faiella was arrested Monday at his Florida home.
Prosecutors say in a news release that Faiella sold Bitcoins to users seeking to buy illegal drugs on the site.
They say Shrem bought drugs on Silk Road and helped Faiella exchange more than $1 million in cash for Bitcoins so they could make illegal purchases.
It wasn’t immediately clear who would represent Faiella and Shrem in court.