US Government Cracking Down on BitCoin? - GoFuckYourself.com

$5 submissions · 01-27-2014, 01:37 PM

https://www.vocativ.com/01-2014/bitc...ey-laundering/ The final three paragraphs are eye-openers.

Marcus Aurelius · 01-27-2014, 01:43 PM

tl;dr...

Brent 3dSexCash · 01-27-2014, 01:48 PM

Quote:

Originally Posted by $5 submissions

https://www.vocativ.com/01-2014/bitc...ey-laundering/ The final three paragraphs are eye-openers.

At the end of the day there always needs to be a way for people to turn bitcoins into fiat currency. All the governments need to do is attack the exchanges. This reminds me of "black friday" in the poker world. The government started with the payment processors then moved to the sites themselves.

The government will probably never be able to eliminate the exchange but how confident will merchants and bitcoin hoarders be if the exchanges start dropping like flies. It reminds me of how poker players felt when they put money on sites and were not 100 percent they could cash out. Sure enough, eventually they couldn't.

What is amazing about these idiots is that they continue to stay in the USA AFTER they see others get busted for doing similar things.

420 · 01-27-2014, 01:54 PM

That sounds like they're more against money laundering than bitcoin. The guy had a btc/cash exchange and didn't enforce the regulations.

dyna mo · 01-27-2014, 01:55 PM

the guy was/is a drug dealer and crowed about drugs to a media outlet. of course the law came after him.

420 · 01-27-2014, 02:03 PM

He's not really in trouble for the drugs.

Quote:

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. Working together, SHREM and FAIELLA exchanged over $1 million in cash for Bitcoins for the benefit of Silk Road users, so that the users could, in turn, make illegal purchases on Silk Road.

dyna mo · 01-27-2014, 02:07 PM

the feds most certainly are after him for being a doper:

Quote:

The indictment reveals a long list of serious federal offenses. First, that Shrem knowingly allowed Faiella to use BitInstant to buy Bitcoins for his drug customers.

Essentially, the feds are alleging that Shrem knowingly used his company?s site as a money-laundering tool for drug dealers.

Although we?re likely weeks away from trial, the indictment is a good indicator for law enforcement?s strategy on fighting online drug dealing.

Rather than targeting individual drug dealers, who are often difficult to find, law enforcement will likely continue to target the consumer-facing exchanges and the people behind them, which are much easier to investigate.

BFT3K · 01-27-2014, 02:08 PM

The founder of a prominent Bitcoin exchange company has been arrested and charged with running an illegal scheme to sell the digital currency to customers trafficking narcotics on the now-defunct drug website Silk Road, prosecutors said Monday.

Charlie Shrem, 24, chief executive of BitInstant, was arrested Sunday at John F. Kennedy International Airport in New York on charges of conspiring to commit money laundering and operating an unlicensed money transmitting business, prosecutors said. He is scheduled to appear in court on Monday.

Robert Faiella, an underground Bitcoin exchanger, faces the same charges for allegedly obtaining Bitcoins with help from Shrem's company and then selling the digital currency to users of Silk Road, which only accepts Bitcoin as payment.

continues here...

http://www.huffingtonpost.com/2014/0...n_4674148.html

seeandsee · 01-27-2014, 02:21 PM

Arresting that people can't stop bitcoins

marlboroack · 01-27-2014, 03:00 PM

Then why have bitcoin ATMs?

WDF · 01-27-2014, 03:51 PM

Money Laundering is a serious charge in the USA.
It usually comes with Tax Evasion charges also.

Steal from anyone but the Government!

Anyone associated with Silk Road in a financial sense will face this type of action sometime in the future.

The site associated cases/arrests have just started for the Money/Financial players involved.

Good Propaganda for the Anti-BitCoin folks though.

I wonder if the Winklevoss Twins will be implicated eventually?

Lykos · 01-27-2014, 07:42 PM

They are against drug dealers and criminals not bitcoin.

edgeprod · 01-27-2014, 08:19 PM

Quote:

Originally Posted by marlboroack

Then why have bitcoin ATMs?

Who is the model in your avatar?

jscott · 01-27-2014, 08:24 PM

Funny how people attacking bitcoin as if it was the problem. This arrest was based on 1 guys bad decisions. It's like if US dollar was being attacked because of Kenneth Lay and the Enron scandal LOL

edgeprod · 01-27-2014, 08:25 PM

Quote:

Originally Posted by jscott

Funny how people attacking bitcoin as if it was the problem. This arrest was based on 1 guys bad decisions. It's like if US dollar was being attacked because of Kenneth Lay and the Enron scandal LOL

It's inconvenient for some people to let the truth get in the way of a good story.

EpicPanda · 01-28-2014, 01:22 AM

In the end, I think this is about the scofflaws of Silk Road. It was an ugly start for Bitcoin, but the genie isn't going back in the bottle.

Cryptocurrency is here to stay.

01-27-2014, 01:37 PM	#1
$5 submissions I help you SUCCEED Industry Role: Join Date: Nov 2003 Location: The Pearl of the Orient Seas Posts: 32,195	US Government Cracking Down on BitCoin? https://www.vocativ.com/01-2014/bitc...ey-laundering/ The final three paragraphs are eye-openers. __________________ Need a NON-ADULT income stream? We build your YOUTUBE CHANNEL for only $20 per video! For Hire: $3/hour or $400 per month Marketing Specialist Virtual Assistants

01-27-2014, 01:43 PM	#2
Marcus Aurelius No Refunds Issued. Industry Role: Join Date: Apr 2003 Posts: 14,809	tl;dr... Last edited by Marcus Aurelius; 01-27-2014 at 01:57 PM..

01-27-2014, 01:54 PM	#4
420 cuck Industry Role: Join Date: Mar 2003 Posts: 11,571	That sounds like they're more against money laundering than bitcoin. The guy had a btc/cash exchange and didn't enforce the regulations. __________________ <!--BEGIN SIMUTRONICS PLAY BUTTON CODE --> <p align="center"> <a href="http://buddy.play.net/dr?TMOREAU1"> <img src="drplay.gif" width="128" height="64" alt="Play DragonRealms!"></a></p> <!--END SIMUTRONICS PLAY BUTTON CODE -->

01-27-2014, 02:21 PM	#9
seeandsee Check SIG! Industry Role: Join Date: Mar 2006 Location: Europe (Skype: gojkoas) Posts: 50,945	Arresting that people can't stop bitcoins __________________ BUY MY SIG - 50$/Year Contact here

01-27-2014, 03:51 PM	#11
WDF Confirmed User Industry Role: Join Date: Jan 2013 Location: Nashville,TN. Music City U.S.A. Posts: 2,248	Money Laundering is a serious charge in the USA. It usually comes with Tax Evasion charges also. Steal from anyone but the Government! Anyone associated with Silk Road in a financial sense will face this type of action sometime in the future. The site associated cases/arrests have just started for the Money/Financial players involved. Good Propaganda for the Anti-BitCoin folks though. I wonder if the Winklevoss Twins will be implicated eventually? __________________ Please HELP

01-27-2014, 01:55 PM	#5
dyna mo The People's Post Industry Role: Join Date: Dec 2008 Location: invisible 7-11 Posts: 65,388	the guy was/is a drug dealer and crowed about drugs to a media outlet. of course the law came after him.

01-27-2014, 02:08 PM	#8
BFT3K Too lazy to set a custom title Industry Role: Join Date: Dec 2005 Location: Narnia Posts: 10,764	The founder of a prominent Bitcoin exchange company has been arrested and charged with running an illegal scheme to sell the digital currency to customers trafficking narcotics on the now-defunct drug website Silk Road, prosecutors said Monday. Charlie Shrem, 24, chief executive of BitInstant, was arrested Sunday at John F. Kennedy International Airport in New York on charges of conspiring to commit money laundering and operating an unlicensed money transmitting business, prosecutors said. He is scheduled to appear in court on Monday. Robert Faiella, an underground Bitcoin exchanger, faces the same charges for allegedly obtaining Bitcoins with help from Shrem's company and then selling the digital currency to users of Silk Road, which only accepts Bitcoin as payment. continues here... http://www.huffingtonpost.com/2014/0...n_4674148.html

01-27-2014, 03:00 PM	#10
marlboroack So Fucking Banned Industry Role: Join Date: Jul 2010 Location: ☣ Posts: 9,327	Then why have bitcoin ATMs?

01-27-2014, 07:42 PM	#12
Lykos Too lazy to set a custom title Industry Role: Join Date: Apr 2003 Location: World Posts: 31,027	They are against drug dealers and criminals not bitcoin. __________________

01-27-2014, 08:24 PM	#14
jscott So Fucking Banned Industry Role: Join Date: Feb 2001 Location: Taipei Posts: 25,198	Funny how people attacking bitcoin as if it was the problem. This arrest was based on 1 guys bad decisions. It's like if US dollar was being attacked because of Kenneth Lay and the Enron scandal LOL

01-28-2014, 01:22 AM	#16
EpicPanda Verified Panda Industry Role: Join Date: Nov 2006 Posts: 778	In the end, I think this is about the scofflaws of Silk Road. It was an ugly start for Bitcoin, but the genie isn't going back in the bottle. Cryptocurrency is here to stay. __________________ Twitter: /MalloyPanda