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DOJ Finally Going After The Criminal Masterminds With Arrest Of 24 Year-Old Bitcoin Exchange Founder
The US crackdown on Bitcoin has been long in coming, with ebbs and flows of enforcement as regulators have been unsure exactly how to proceed with dismantling the digital fiat alternative. This morning the ebb became a rising tide, after U.S. prosecutors announced charges against two men operating Bitcoin exchange businesses for attempting to sell $1 million worth of Bitcoin to users of the underground black market website Silk Road, which was shut down by authorities in September.
Reuters reports that the U.S. Attorney's office in Manhattan said in a statement that authorities arrested Charlie Schrem, 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. Schrem is also vice president of the main Bitcoin-focused trade group, the Bitcoin Foundation, according to the foundation's website and Schrem's LinkedIn profile.
Some details from the charge against the defendants:
Federal prosecutors charged Faiella, 52, and Shrem, 24, with engaging in a scheme to sell more than $1 million of Bitcoins to users of Silk Road. Each defendant was charged with conspiring to commit money laundering, which carries a maximum prison sentence of 20 years. They are additionally charged with operating an unlicensed money transmitting business, which has a max sentence of five years in prison.
The U.S. also charged Shrem with violating the Bank Secrecy Act by “willfully failing” to file suspicious activity reports on Faiella’s questionable transactions. This charge carries a maximum sentence of five years in prison.
In addition to the Manhattan U.S. Attorney, the charges were announced by the Drug Enforcement Agency and the criminal investigation division of the Internal Revenue Service.
“Hiding behind their computers, both defendants are charged with knowingly contributing to and facilitating anonymous drug sales, earning substantial profits along the way,” said DEA acting special-agent-in-charge James Hunt.
Schrem was apprehended by authorities at JFK International Airport in New York on Sunday and is set to appear in federal court in Manhattan later on Monday. Faiella was arrested at his Cape Coral, Fla., home on Monday and is expected to appear in federal court in the Middle District of Florida.
The court documents allege Faiella operated an underground Bitcoin exchange on the Silk Road website between December 2011 and October 2013 that sold the crypto currency to users who wanted to buy illegal drugs on the site. After receiving orders, he filled them through a New York company designed to enable customers to exchange cash for Bitcoins anonymously, the U.S. alleges.
Shrem served as the New York Bitcoin company’s CEO during much of that timeframe and was “fully aware that Silk Road was a drug-trafficking website” and that Faiella was operating an exchange service for Silk Road users, the documents say.
Prosecutors say Shrem still did business with Faiella to maintain a “lucrative source” of revenue. He personally processed Faiella’s orders, gave him discounts on high-volume transactions, failed to file a single suspicious activity report and even helped Faiella “circumvent” the company’s anti-money laundering policies, the documents allege.
Bharara said the investigation remains ongoing.
As a reminder, BitInstant, which at the time "aimed to be the go-to site" to buy and sell bitcoins, received a $1.5 million investment by Winklevoss Capital in May 2013. From the TechCrunch profile of the startup:
BitInstant, which has a full-time staff of 16 led by CEO Charlie Shrem, has emerged as a key player in the nascent Bitcoin market: The company already processes approximately 30 percent of the money going into and out of Bitcoin, and last month alone facilitated 30,000 transactions, the Winklevosses said in a phone call this week. The funding is meant to allow the company to further scale up its staff and product as it angles to become the go-to site for Bitcoin transfers.
The US charge is not a ringing endorsement for the premise behind the Winklevi investment:
The Winklevosses say they were attracted to invest in BitInstant in large part because of its leadership. CEO Shrem is the vice chairman of the Bitcoin Foundation, and CIO Alex Waters previously worked with the core developers on the original Satoshi Bitcoin client. “Charlie has been in the space for a very long time, and he has an impeccable reputation among Bitcoiners. He knows everyone in the space and everyone in the space knows him,” Cameron Winklevoss said. “One of the most exciting things about people who are into Bitcoin is that they’re a really passionate community, and Charlie is a passionate entrepreneur. He would be in that category of someone who lives, breathes, and sleeps Bitcoin.”
Perhaps. However, in retrospect Charlie's biggest crime was not being CEO of JPM or, at worst, HSBC, where money laundering and other criminal activity is not only encouraged but rewarded with soaring bonuses. The good news is that one can once and for all confirm that when it comes to "Justice" in the US, some - those who deal with legacy status quo mandated and enforced ponzi scheme fiat - are far more equal than anyone who dares to think outside the Fed's printer.
Finally, here is a recent profile of 24 year old "criminal mastermind" Schrem via Bitcoin Examiner.
Meet Charlie Shrem. He’s 23 years old and the co-owner of Evr, one of the most famous gastro pubs in Manhatan. The name might sound familiar, since we talked about this pub before, when it became one of the first establishments to receive Bitcoin as a payment for drinks and food in New York City.
But why is Charlie Shrem different from other crypto-millionaires? Because he is now a BitAngel, member of an investment group created to invest in Bitcoin startups. We’ve also talked about this group before here.
Today, whenever someone pays at Evr with digital coin, Shrem gets a little bit richer, but he’s using his money to help others. Everything started in 2011, when Bitcoin became more famous, he bought thousands of Bitcoins for about $20 each. He invested almost everything he had in what could have been a dangerous game. However, since then, the digital coin value has skyrocketed.
At Evr, with his business partner.
After his investment in the bar, he founded the exchange platform Bitinstant. “Infrastructure is what we need. We’ve got to build, build, build–financial software, exchanges, and different payment products”, says Charlie Shrem, who clearly followed his own advice and profited with it.
He might not have the same funds as big Silicon Valley investors, but he has turned into a Bitcoin angel anyway. “The early guys are the ones that run everything. In this space, how long you’ve been around matters”, explains the entrepreneur.
However, we would like to look at him and others and see some kind of Bitcoin ambassadors, the ones that are setting the example and showing how it’s possible to grow once you leave your fear behind and go deep into a new world like cryptocurrency. Because they show what Bitcoin is for real: an opportunity.
* * *
And now, please join us in a moment of solemn silence as we fondly recall the memory of all the HSBC bankers who were thrown in prison for aiding, abetting and profiting from laundering money with known global terrorists...
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Ever wonder if "The Power" has only let this BTC fiasco go on just long enough to compile names and line up Enemies of the State for future political purposes?
Every single transaction is most certainly traceable, and after all, we wouldn't want any questions arising regarding the "Full Faith and Credit" of the Fed, the NSA and their Pentagon, would we?
Unreal, the way some folks fall for the, er, "unreal."
I think of it as an deceptive invitation to the firing squad, some volunteer and some are framed.
best to fly low off the radar.
A sad day for American justice injustice
...and just another day on the blockchain gang.
Do you believe in Global Warming, too?
I think it would be more appropriate and easier to acknowledge when the American justice system has a good day. If we ever see one.
You will get "just us" when you become just them.
I think that "Jim Willie" is credible. Regardless, he suggests that the Germans are getting serious about squeezing the testicles of the various bullion banks for fraud. Be still my beating heart. Says that when the Germans get pissed, they are pissed. Once an investigation starts it runs untill its end. Stated differently, there are no Bart Chiltons in Germany.
http://www.silverdoctors.com/jim-willie-2/
"A nation that is afraid to let it's people judge the truth and falsehood in a open market is a nation that is afraid of it's people." - John F. Kennedy
"sold the crypto currency to users who wanted to buy illegal drug"
The same crime as using dollars to bu illegal drugs.
Same crime as changing Euro's into dollars - why is it the responsibility of someone who exchanges money what those people use it for?
Must
not
have
competing
fiat.
Smackdown. LOL
Is he related to Moishe Shrem who lives on 33rd and 3rd?
Not sure about that, but I am pretty sure his father is the Wolfman. You see the tufts of fur on that fucker's ears?
Love it...one more useful technology that stems from the world of crime...sure the case of him ignoring what went on in the early days with drug trafficking has some merit but then again look how the technology has grown...so yeah what will the feds do here and about all the transactions that went through HSBC and other banks from drug trafficking..an interesting kettle and pot story developing. I wrote about time to look at some of the proprietary code out there "running hog ass wild" while everyone works on their legal verbiage and actually on a Sunday got a couple hits from someone at the SEC reading it..but don't know who and their capacity. I also asked David Axelrod on Twiitter to think about going back maybe? The emails from the White House are bugging me too as those seem to have a targeted level of a 5th grade reader of late..something happened there too as they used to be good and now I get emails with a picture of a White House tea cup...for one example...something is trending here and I think it's the inability to see where the virtual worlds and the real world collide..very few can tell the difference any more and those that do, well their code runs and make them wealthier, the proprietary code out there:)
http://ducknetweb.blogspot.com/2014/01/not-only-is-it-time-to-hold-banks...
I just wrote a post about Sergey, remember him, the programmer that stole Goldman's code...government again..the guy served a year, judge threw it out and now 4 years later the code is worth nothing..had a financial tech back me up on twitter this morning too on that one.
So here goes the useless Sergey Aleynikov case now that New York state wants to pursue...it's right up there with going after Octomom in California for failing to report $30k of income supposedly..what's that going to cost? What's the government going to pay if she goes to jail to place all those kids and support them? Yes indeed we certainly seem to have different opinions on where the real criminals are today and what they do for sure...
http://ducknetweb.blogspot.com/2014/01/digital-illiterates-in-government...
"
RADcTION @MedicalQuack @nanexllc actually that bloated dated code is worth neg now...total liability: both code & SEC/gov.
The system (your and my tax dollars) is supporting Octomom's kids anyway. Why did you sign up to receive emails from the WH? Do you expect them to tell you anything you either don't know already or something truthful?
If they are going after Charlie then they should go after the HSBC executives for the money laundering of HSBC or is justice NOT BLIND ?
If it was a $Billion or moar they would have just been slapped on wrist and put in timeout for a week. { Corzine style}
If you can't play with the big dogs, stay under the porch... Pikers.
Free John Corzine! Oh wait, nevermind...
Botcoin MLM scheme COMMENCE! Hey you PUSSIES and WIMPS buy botcoin or get sand kicked in your face while real botcoin badasses double team your special lady. Don't be that guy. Find out how you can be the king of the beach! Follow Fonestar...
“Hiding behind their computers, both defendants are charged with knowingly contributing to and facilitating anonymous drug sales, earning substantial profits along the way,” said DEA acting special-agent-in-charge James Hunt.
Must not compete with DEA to sell drugs, ok?
Fer fucks sake some people are stupid.
It's GOOBERMINTs job to run fiat currencies.
it's GOOBERMINTS job to sell "illegal" drugs.... specifically... DEA,
http://www.theblaze.com/stories/2014/01/13/report-the-dea-really-did-str...
By the time the case goes to court, the paycheques for all the legal folks won't buy flour for bread. They'll be begging to get these guys to teach them how the new money system is going to work.
Tick tock tick tock tick tock.
Free Eric Holder for that phoney fast and furious scandal.....
Once the political class figures out how to take bribes in crypto currency (other then the established fed bits) it will be game on.
How this guy Charlie remained resident of the USA while he was expanding Bitcoin is something I will never understand. I guess he dserved it. Lesson learned. Next!
Was this a virtual arrest?
I'm thinking the same thing. He's 24 and has an whole life of F.B.I. servitude in front of him. He's still malleable...
His name was Charlie Shrem...
We usually do this when they die, but what the hell...
Shrem could be an eye brow donor. Those things are robust!
I think the real travisty here is that the gov is attacking entrepreneurs. I know its nothing new, but the story is not about bitcoin. The story is about the gov protecting cronies, protecting the cartel's marketshare, and punishing good ideas from hardworking peolpe and never letting true competition into the market. Despicabe actions from the gov. This world makes me sick. When the gov has legalized theft and fraud then there is nothing left to save. I love America and her citizens, but there is nothing in gov left to save. I can't wait for the day when we can start to rebuild.
What is so hard to understand? These people were aiding and abetting drug dealers, and laundering money, both of which are felonies. Now, I know .gov has much to answer for in that department--Mena Airport, anyone? But the feds are not off-base enforcing the laws here. Bitcoin is fucking genius--you get all these people on board to defend what will end up being the Ponzi of the decade. The butt-hurt is going to be epic.
What's your point? Do you have one?
The butt hurt will truly arrive when the Ponzi of the century comes to an end.
"Department of Justice" Now theres a fucking title that means nothing.
Right out of the Harry Potter stories....,.Dept of Justice (Eric Holder !... hahaha...involved with "justice"....ahhaha).
"Department of Justus" you're pronuoncing it wrong.
"Everbody talkin 'bout justice; just as soon as they get theirs, hmm, hmmm, -" Moses Allison Song.
sephardic
ashkenazi
Which one is Shrem? I'm betting he's not from the 'right' tribe...and that's why we're reading of his arrest and/or curse of the Winklevii.
s/He should have changed his name to Zuckershremberg./s
This time it's not different. Lessons from the war on online gambling simply ignored. Anybody that has knowingly facilitated a transaction that involves illegal activity, should just get out on the first flight to Somalia.
Nabbed at JFK, Think his name might have popped up on one of those handy-dandy watch lists?
With the advent of air travel, the world got small.
With computers, It's now microscopic.
You cannot run, You cannot hide.
So what's left?
“Hiding behind their computers, both defendants are charged with knowingly contributing to and facilitating anonymous drug sales, earning substantial profits along the way,” said DEA acting special-agent-in-charge James Hunt.
Referring of course to HSBC, right? RIGHT??????
A moment of silence for what used to be a free country.
A prayer as well: "Lord Jesus, I ask that your wrath be poured out on those 1% that have caused so much pain and suffering. You have said that you are on the side of the widow and the orphan so we ask that you act now. Either spiritually save these depraved beings so that they are changed into humans or kill them."
BTW, I am a believer and that is a sincere prayer. My Jesus is a God of justice -- usually he times it when they least expect justice.
But I will show you whom you should fear:
Fear Him who, after He has killed,
has power to cast into hell; yes, I say to you, fear Him! Luke 12:5
Not a believer in BTC, definitely not a proponent.
But they get my respect when the Federals are taking them on. The charges are bullshit as far as I can tell. Something else is going on.
Fed don't give me this "ethics" crap and pretend you're holier than thou. The drug trade is what floats your boats, just ask John O'Brennan how far his dept could travel without the proceeds from money laundering and drug trafficking.
Hats off the to BTC Kings for pissing on the Fed parade and biting a chunk out of the Fed's revenue stream.
Hopefully the BTC community is passionate enough to take this fight to the next level.
Pirates be pirates!
Hey man , it looks like these guys were selling btc on the Silk Road with the full knowledge they were then being used to buy illegal drugs. Then they were buying back the btc from the dealers and then re-cycling the bitcoins back to the buyers so they could buy more drugs. They were making a spread on every trade. If that is not some clever form of laundering then please explain what is. Any currency can be used to do such a deed , if anything this re-enforces bitcoin's role as a true currency. The bitcoin community should fight against anybody using any currency for illegal activity , if these guys are genuine crooks it is totally correct that they should be arrested by the fed's and charged.
Who is complaining? Were dealers annoyed at these guys making money on the trade?
Are you suggesting .gov is out there serving its citizens and protecting them from evil drug dealers and drug abuse?
LOL
Government has many levels. Some levels of .gov are there to protect the vulnerable members of our society. Other levels exist to exploit other members of our society. Government is constantly fighting a battle within itself to strike a balance between a multiple of competing forces , this fine balance between meeting it's own needs and that of it's citizens who pay for it's existance is truly a fine balance. The balance between Government and Private Sector equates to the balance between a Parasite and it's host , neither really ever knows which is which , ..
1. They bought Bitcoins on the open market at one price
2. They sold BitCoins on the open market at another price
And this is different from the Carrots market ?
Or the Gold market ?
Or the $ market ?
This case is political, either way it legitimises BitCoins as Legal Entities
So you expected more from this Fascist government? I'll be shocked if they don't water board these guys for good measure. Bitcoin is solidly here and the FED and every other CB is shitting thier pants.
I said the other day on some other piece that there is no way in hell that the central banks will stand by and allow Bitcoin and other such currencies to survive long term.
There will be a coordinated effort all over the world to stamp these currencies out.
charlie shrem took 1.5 million of winklevoss money and basically closed up shop.
the government is only going after him probably because the winklevoss twins have some decent connections and want some of their money back.
I bet 1 BitCoin that Shrem voted Republican in the last election. If Corzine had been just a ... well y'know.
When you can't naked short bitcoins, arrests are the next best thing, I guess. I have two words "Liberty Dollar"
Eric Holder's Just-US gang doesn't like anyone competing with the Federal Reserve's Ponzi game.
The bansters contribute plenty of protection money to the Obama's party.
True that - these guy's real crime, was not delivering the Democrats their slice of the action.
Interesting. If I was defending someone from such a "charge" I might first ask for the prosecutor to state, in writing, the nature of the "money" involved in the alleged "money transmitting business". Logically, bitcoin does not seem to fit the definition of "money". Maybe that law is void for vagueness.....
Smack down gold, smack down silver, pump oil, pump stocks, pump housing. Throw anyone who tries to exit the fiat dollar in jail. We're dominted by financial facists and this is not going to end well!
Pray for the Republic.............
FREE JON CORZINE!!!!!!!!!!!!!!
He should be freed in the middle of the ocean without a boat.
Govco can't decide if they want to kill BTC, steal them, steal the franchise, tax it, or, control it by other means. I think they're poking around at it just to see how BTC reacts and how it works as part of ongoing research. They still don't know what the fuck to do about it.
Keep in mind that this is the DEA we are dealing with - the "short bus" among federal law-enforcement agencies.
Conspirarcy to assist someone in money laundering. It's like a 4th derivative crime. Is everyone who owns a buttcoin an accessory to conspirarcy to commit money laundering?
Don't worry, the NSA knows who holds bitcoins... Those freedom lovers will pay for their insolence
How do you 'hold' a bitcoin ? I thought they were virtual
You have a vitual purse..Duh... When you're lawn mower man, its all good!
So if you bank with HSBC or cash a check written by someone who does, they can arrest you for conspiracy to launder drug money and fund terrorists? That is all I am getting out of this stupidity.
Don't kid yourself - they can always find something to arrest you for. All you can do, is hope that your name never shows up on their computer screen.
Wonder when they will arrest the NSA analyst that created the Bitcoin?
MOST interesting.
Price unaffected by this. Volume spikes with heavy selling missed last period & next period coming up without a sign of rising volume for a sell-off.
Hmmmmm
Is Bitcoin a fraud, a stalking horse for the banksters, a scam or Ponzi scheme? Perhaps with this indictment we may just find out. On the other hand, in a funny way it's a credibility test. If Bitcoin is none of the above and if it is conceptually solid and robust, it will have to survive just such an attack from the banksters and their state.
Bitcoin is basically the next step in a long line of disruptive technologies. I suppose the easiest way to see bitcoin is like a pilot moving from a propeller engine to a jet engine. If you have only ever flown propeller planes then you will be very sceptical of a jet powered aircraft , but once you have felt it's power and speed , there's no going back.
I don't follow your reasoning. Federal prosecution does not test the strength of BTC in any way that its users are concerned about. Does this help me to judge whether it is possible to counterfeit BTC? No. Does this show whether someone can contrive to spend the BTC in my wallet, without knowing the password? Nope. Does it indicate whether BTC are likely to gain or lose purchasing power? I'm sure some people will think so.
you must be new here.
TPTB assure me this isn't money so how is he guilty of laundering something that isn't money? I'm so confused!
HSBC may have been slapped with the largest penalties ever, but it is hardly the only bank to have been caught profiting off prohibition. In 2010, Wachovia forfeited $110 million to avoid criminal prosecution for money laundering for the cartels, Sigue Corporation forfeited $15 million in 2008, American Express International Bank paid $65 million in fines and Union Bank of California forfeited $21.6 million in 2007, and Bank Atlantic paid a $10 million fine to avoid prosecution for laundering drug cartel profits in 2006. Like HSBC, all of those banks agreed to reform their banking practices and submit to federal oversight as part of the agreement.
So if you send any money into any of these institutions, you are guilty of assisting in laundering drug money.
This will not stop bitcoin.
This will make bitcoin stronger.
$2000 by end of april.
These actions are to send out a strong signal: do not think using bitcoin will allow you to operate above the law.
Crooks: stick with paper cash & HSBC.
Paper wallets. Picture message.
HSBC, eh.. local knowledge of money laundering, global knowledge of money laundering.... Didn't I see that on some dipshit billboard ? ....or airplane docking ramp or something?
Yes! The DOJ is finally going after those money laundering banks! Wait, what's that this article isn't about HSBC?
ten years from now; people will be going, "remember that bitcoin bullshit, they were going to take over the world or something?" "OH, yeah; What the fuck, that was funny, man".
Evolution: you cannot escape it,
Film Camera's : Digital Photography
Posting letters : email
Propeller Engine : Jet Engine
Vinyl Records : MP3 cloud
Newspapers : WWW Desktop Publishing
Cathode Ray Tube : Wide Flatscreen TV
etc , etc , etc
Fiat Debt Paper : Online Digital Currency
They are known as 'Disruptive Technologies' for a very good reason , technology only moves in one direction , so in 10 years time your statement will more accurately read "remember when we had those paper US Dollar bullshit to spend" ? "OH, yeah; What the fuck, that was funny, man".
It was actually the CEO of Kodak who said "Digital photography will never take off" - what happened to Kodak again ?
10 seconds ago I'll be going "wow man this dood is old"
Thank sweet fucking Jesus that "our" government is here to protect us from these criminals!
Welcome to Bizzaro World
Faith in the government is silly and faith in bitcoin is sillier.
Thankfully, everyone's transactions are encoded into the blockchain for disassembly later.
Like I have said, these evil fuckers kill presidents. Bitcoin ain't gonna keep happening.
The currency of the future is energy.
If a bitcoin had an intrisnic value of say 1.00 kW/hr (3.60 MJ) then I would think it had a future. Someday technology will advance to the point that storing, accessing, and transmitting energy to purchase goods and services will be viable.
Until that day, there is only gold and steel.
Problem with that is you cannot transmit or send the value of that gold and steel over a network to the other side of the planet in an instant , bitcoin can transfer that value over a netwrok , so the nework itself and it's units of transfer then becomes valuable..
and it can be hacked to go another half way around the world to some hackers account. took 4 minutes to hack in to the ACA site, bitcoin will be different?
Bitcoin has been open to all hackers these past 5 years to whack at. At $10 billion market cap, a pretty hefty prize to anybody who can crack that nut.
Yeah it can be hacked blaa blaa blaa just like your leather wallet can be stolen if you leave it out on the seat of a bus or train or leave it with a theif to look after,
If a bitcoin had an intrisnic value of say 1.00 kW/hr (3.60 MJ) then I would think it had a future
+1
unfortunately, that can not be discussed around these parts without being swarmed upon by an army of flies who fling around non-sequiturs until the topic is squashed through annoyance.
...and Scorsese's stupid F*cking Wolf of Wall Street thrills and spills expose of nothing.
So now we can see if there is consistency in enforcement activity of this sort or if enforcement of this type is pursuant to any sort of guidelines. Given past practices, these guys should expect to pay about 1% of their profit as a "penalty" for what they've done, reflecting the DoJ/SEC's approach to "financial crimes", as the government sweeps in like the Italian mafia of yesteryear running its little protection racket and simply wanting a cut of the action.
Where's Corzine?!
"When the time comes, Corzine will get the dull blade."
I am a sucker for underdogs.
http://www.marketwatch.com/story/it-professionals-want-to-be-paid-in-bit...
A little encouragement.
Have you guys even read the indictment?
http://www.justice.gov/usao/nys/pressreleases/January14/SchremFaiellaCha...
Shrem was clearly breaking the law and knew it. He was breaking the law behind the back of his business partner and the payment processor (ZipZap).
This will just add legitimacy, as they weed out the bad and make more statements reinforcing that BTC is "real" in the indictment.
Have they arrested Corzine yet? What a fucking joke - this 24 yr. olds biggest crime is he wasn't A bundler for the blue team. I'm sure Corzine didn't know that what he was doing was illegal.......
Maybe fauxcohontas is finally cracking down as she promised. wtf
Charlie who? Oh got it... Charlie btc, just to put the virtual thing into the relevance
I be smellen a Yellen
What'd the blind man say when he passed the fish market? Top o the morning to ya Janet.
Banks are laundering trillions every year and they on occasion get a fine.
The powers that be want Bitcoin shut down, end of story.
Pathetic attempt to portray that the authorities are against Bitcoin. Although in fact the case, the authorities here only are against the illicit drug trade.
U.S. Senate, the U.S. banking community, and even the U.S. Army - they all support and develop Bitcoin. Because Bitcoin - is the brainchild of the U.S. authorities in the face of the Fed and the NSA.
I wish all these Bitcoin-fools luck in their holy war against his own mind.
Apparently Charlie couldn't find any brow waxers to take bitcoin.
Whether the Bitcoin charges have a false degree of merit. The US Government commits drug running, money laundering, illegal gun sales to Mexico, and has Ben Bernanke printing QE to raise the stock market by printing conterfeit money. They use the US dollar to commit the same crime on a daily baisis.
Bitcoin is not tied in with the Federal Reserve Petro Dollar recycling program, nor do they have the ability to printer press money in an encrypted format. Don’t own Bitcoin. Gut feeling, nefarious Central Planners are worried.
Before our eyes, the Fed attempts to replace one a crap currency - U.S. Dollar, to the other next crap currency - Bitcoin.
Fools always the majority. Smart always minority. Geniuses always minimum.
To successfully promote Bitcoin, the Fed made the right bet - on the majority most of fools.
The idea of universal happiness without difficulty, always captures the minds of fools.
Each time, after the opening of the next grail, fools think that this time they will not be deceived.
But every time, again and again they find themselves cheated.
The final and undeniable proof of the corruption of the whole system in the Western world and that if fact it has become a corporate fascist place.
so true. i have to laugh when I see the tranparancy international annual survey ranking usa at 12 most clean country i the world. in actually it is completely corrupt from top to bottom banana republic and the justice department is a criminal organization that attacks the mafia government's competitors and those seeking real freedom.
So, like if I trade someone some Dollars for Euros and they go around the corner and use them to buy some blow, I am breaking the law?
Good to know. Next, they will, of course, be going after the people who accept bitcoins. Because we all know it is illegal for a street vendor to accept cash for a hot dog from somone that may have gotten that cash by selling drugs.
Meanwhile, since the "takedown" of Silk Road, there are, at least, 5 new major markets that heve emerged, plus a half dozen smaller ones, including a Silk Road 2.0. They are attempting to play "Drug Warriors" in a war that they lost decades ago. But that's not really what they are doing, is it? They are attempting to make "examples" out of a few people under the excuse of the Drug War, in order to try to discourage others form using bitcoins keeping it out of the mainstream and in the black markets, thereby keeping a negative connotation on "Bitcoin" to the common folk. Eventually, they will turn the commoners into "enforcers", And it looks like they already have a head start with some of the commenters here.
Many people here question the legitimacy of bitcoin as a "currency". But it is clear that TPTB are shitting their pants, to be putting this much effort and resources into such an investigation. I have no doubt that in such a "war of ideas", where resources are expended at such a rate, that they have people who intentionally post negative comments on boards such as ZH to discourage the use of BTC.
"It's not really currency, man. It's fiat. Muh shahnee meddles"
But what really kills me, is their vclaim tha BTC is manipulated. Yet those same peoplee come here, day after day, complaining about how gold and silver are being manipulated. Persoanlly, I think they are buying way too much of another shiny metal: tin foil.
I have always said this; By that Bit Coin and see what it gets you. You are 1000% Right; and I knew this from the start Freewheelin Franklin. They are going to keep it in the black market; and that's where it will die when the time comes. I know its not fair; I know its an out of control group; but they are in control. Short of a revolution; it won't change and will not change.
hey are attempting to make "examples" out of a few people under the excuse of the Drug War, in order to try to discourage others form using bitcoins keeping it out of the mainstream and in the black markets, thereby keeping a negative connotation on "Bitcoin" to the common folk.
this does seem to be the strategy. more of the undue attention that satoshi warned about in 2010.
this is why that perhaps it's not so wise to remain fixated by the "Bitcoin" brand. in the end, it's just a brand after all.
Osama Bin Shaving Serling
Find a creep, put him in your face. Distract you. They know that we fill in the blanks when they pretend. Bitcoin is a black op.
i haver never understood why guys who develop things like bitcoin or who write about things that displease the mafia banks and their usa government LIVE IN the usa. why do these guys put themselves at risk of going to prison and having their wealth and property stolen by the mafia goveernment? They could do their work from anywhere in the world yet they stupidly stay in the usa where they can be set up for arrest and convicted in the 98 per cent success rate federal courts. makes no sense to me at all.
the other thing is all these mafia banks like jp morgan, goldman, hsbc, when they are made to pay only a small token fine to the mafia government, isnt that just a form of porfit sharing with washington mafia, a cut for the governmetn and not really a fine at all?
In a 'real' legal system, the fines go to compensate the people who suffered loss due to the illegal activity - now its just a commission to the judiciary and legislature for assisting in commiting the crime.
Good luck enforcing this. "He's entitled to a defense and he's got money."
You wanna start throwing high end bartenders in jail?
I think the end is nigh.
So it seems the law is something like this;
When you give someone money (to buy something, to pay for a service, to pay an employee etc) - if they use it for some illegal activity - then you are responsible .. sure that sounds legit.
Whenever you hand someone a $100FRN chances are your fingers also have coke one them, so they can easily bust you as the mastermind of the coke trade - afterall, someone was obviously using or dealing coke who you are financially connected to.
Im not sure what kind of lawyers they are going to use to try and prosecute this case, but I can be sure that everytime they open their mouths they are going to lie.
moonshine is currency in a lot of this country. Doesn't make it legal and therefore not taxable. Cigarettes are currency as well where you have government taxes of 4.00 plus per packx10 I will let you do the math. If you can buy them without the tax stamp in one part of the country and resell them, well. What do you think a 400 dollar generator sells for after a Sandy event when you have 500 dollars worth of goods in your freezer and no electricity for a week? Ah, the great marketplace in the real world. When it becomes a threat to the status quo it gets the guberments attention. I got to ask you something. Do you want this guy dating your sister or daughter? Nuff said.
The US Crackdown On Bitcoin - The End Of The Amazing Bubble
The only Bubble from 2013 left untouched so far is Bitcoin: after its crash postChinese ban and coordinated attack by the Central Banks Bitcoin has recovered its grounds and was trading close to $1000 range again. These days, with closing window for currency withdrawals from Bitcoin exchanges in China, DOJ has made its move. The most sexy attribution of Bitcoin - its supposed anonymity, will be used against it. As we have discussed before this anonymity is widely misunderstood and as Silk Road case demonstrates: All Transactions can be Reconstituted As An Evidence. China bans Bitcoin and encourages its citizens to accumulate Gold. Central Banks all over the world are warning about the speculation danger related to Bitcoin. FED keeps very suspicious silence about its real stance about the FIAT alternative and after fighting Gold for 100 years it is a given that Bitcoin will be taken out once NSA will complete its job. Now Robert J. Shiller has joined our small crowd and called Bitcoin as it is:
Some people will be coming out with the same old rubbish in 5 years time when it's at 50k +