Topic: US Makes Bitcoin Exchange Arrests!.........Here We Go Then! (Read 3795 times)

Go do that in russia or china.

Instead of bitching at US for being 'totalitarian' (laugh)

You people and your whinefest. Does that make you feel like 'standing up to something'?

Coward pussy snowden is your hero ain't he?


There's a difference between a real deal and wannabes. Like you.

The only proven mistake, more than just an allegation currently unproven in court beyond a reasonable doubt, is having an email system that wasn't entirely PGP encrypted. Spoofing emails is easy as fuck, millions of unsolicited emails are. Not even spamcop.net can help you send 100% perfect abuse@ reports 100% of the time.

When you do business in a totalitarian state, you need to act as if every single thing you do (no matter how godly, moral, ethical, etc.) is "illegal", and exercise your rights against unreasonable searches, and self-incrimination.

PGP is one way.

I think the brave souls that are the pioneers in Bitcoin will have be more careful than anyone in how they do business because they are going to be scrutinized under a microscope by the watchful eyes of all governments.  They can't take down Bitcoin but they can look for every opportunity to throw people "under the bus" if they see even a hint of something that looks like money laundering or illegal money transferring.   I was even hesitant to purchase any Bitcoin at all until we heard that there were money laundering rules being put into place.  This decision cost us some money in that we purchased later than we could have but I have felt it is better to be safe then tied to anything deemed "illegal." 

All that said, I hope that Charlie has a good lawyer.  I also feel that "crimes" that are money related should be treated simply by giving fines and not imprisonment, but that is a whole different topic. 
 

I'm generally withholding comment on this whole affair for obvious reasons (and the lawyers will probably kill me for this post), but allow me to say this:

No, nobody else in the company knew about Charlie going back to this guy in private, myself included (read the complaint - i'm "the co-founder", read what I said).

I've always liked Charlie as a friend and a colleague and don't want to see him in prison - he does not deserve that at all (after all, there are literally no victims here other than those created by state intervention) - but neither am I happy to let people speculate that the rest of the company was "in on it".

If anything I personally felt a bit betrayed reading the complaint - if you read my emails to him as cited in the complaint I warned him that this whole mess smelled like money laundering and could lead to trouble. What you don't see in the complaint is my suggestions that we actively try to prevent ban evading through pattern analysis - of course it makes sense now why that didn't happen and I could not imagine that Charlie would cover for someone we should have been banning.

Charlie's a good man really, and it pains me to say anything bad about him because i've a lot of respect for him as a colleague and a friend, but I also have to make extremely clear that I myself was not aware of the extent of this particular issue.

A friend to all bitcoiners made a mistake, but it is his mistake alone.

There may be more truth to that than you know!

Sooner or later THE MAN will come after ALL who deal in crypto.

My $.02.

More victimless "criminals" having the boot stamping on their face forever. Just a matter of time before every single localbitcoins seller is prosecuted for not harming anyone, because "economic liberty must be destroyed"!

No there is more.

This is only one charge. And I doubt that you get arrested for only failing to report.

These are the reasons why he got arrested
Looks really bad for him.

I am sure the media and politcians will use this against bitcoin. Funny, when HSBC was used to launder hundrets of billions of drug money, no one attacked banks in general.

Bitcoin encryption is unbreakable. Hide copies of your wallets all over the place. Put them in some Internet cloud. Load them onto file sharing sites. Then if you get busted, and if your computer and the wallets it holds get stolen by the police, if you ever get a chance - maybe in a couple of years - to privately get onto the Internet, you can get your money out, if you remember your passphrase, of course. But you won't be able to get your bitcoins if the police are the only ones who have all your wallet files... which they can't use, of course, because they don't know the passphrases. But you can't use them, either, if the police have them.

You could access copies that you stored on the Internet, and empty the wallets so that the copies that the police have are useless to them.

I imagine money bust then they paying fir lets say drugs. Once bitcoins spent it cant be taken or i am wrong and US gov have some tool ?
In that case that none safe curency anymore and we need to look at something new.

If i holded some bitcoins in one or another exchange why should i loose them ? I think peoples have to lawsuit american gov for moral harm they did to peoples who not had any intention to brake any laws.
Need only one richer man who will stand first and others will follow.

But what about busting them wall street douches that import cocaine by the ton and launder it for 75%? No?

Well they taked bitcoins who not been spent. They just taked computers width bitcoins who maby also belonged to none us citizens. In Europe its called theft.

We need separate theme there we can mark taked bitcoins who not been width intention to buy drugs mark as stolen.

Actually that's $0.10 now...

You are more than welcome and I wish more here would give a break to those non-native English speakers who are doing their level best to wade through a very difficult language to learn!

My $.02.

One possibility...

I know from firsthand experience, having registered a company with Fincen, that the individual that is listed with Fincen as the AML compliance officer is 100% responsible for reporting any suspicious activity and can be prosecuted for not flagging one bad actor that is later caught by the feds. This would explain why only Charlie is being prosecuted and none of the other executives at Bitinstant. Because let's face it, at a small company it would be really difficult to keep the other executives from knowing that this was going on.


Also, the feds probably stole all of Shrems remaining bitcoin and transferred it to their personal wallets while smoking the rest of Shrems herbs  

Team america

All is good, Its just sad though, because now charlie is going to go from one rich dude, to poor overnight. You know the feds are going to want to take his stack  of coins.

Quick aside.

Note to self: Remember, and use LostDutchman's way of handling posters whose English in not up to snuff.

Thank you, LD. Seriously!

~Bruno Kucinskas

I think, Mr. Manhattan U.S. Attorney has sold all his Coins before publicating this kind of information. And tomorrow morning he'll buys everything back. Mh?

Point well taken but that is not the article that I originally posted and that article was obviously inomplete.

There is now a flurry of more detailed articles popping up all over the web, making it much more clear what these assholes were up to.

My apologies for having sounded harsh!

My $.02.

..


Ok here we go, I'll quote the part you must have missed!!!



SHREM, who personally bought drugs on Silk Road, was fully aware that Silk Road was a drug-trafficking website, and through his communications with FAIELLA, SHREM also knew that FAIELLA was operating a Bitcoin exchange service for Silk Road users. Nevertheless, SHREM knowingly facilitated FAIELLA’s business with the Company in order to maintain FAIELLA’s business as a lucrative source of Company revenue. SHREM knowingly allowed FAIELLA to use the Company’s services to buy Bitcoins for his Silk Road customers; personally processed FAIELLA’s orders; gave FAIELLA discounts on his high-volume transactions; failed to file a single suspicious activity report with the United States Treasury Department about FAIELLA’s illicit activity, as he was otherwise required to do in his role as the Company’s Compliance Officer; and deliberately helped FAIELLA circumvent the Company’s AML restrictions, even though it was SHREM’s job to enforce them and even though the Company had registered with the Treasury Department as a money services business.

Read more: http://www.businessinsider.com/report-ceo-of-major-bitcoin-exchange-arrested-2014-1#ixzz2rcYivlx2