The BitInstant Arest News Log #Shrem #BitInstant #Winkelvoss 12:59 ET UDPATE

Come back, we will continue to update as we have information.  
Your update source for news on the arrests of Charles Shrem (update: and Robert Faiella) or BitInstant.  

11:01 01/28/14 Bloomberg reports that coming out of the BitInstant arrests New York State regulator promises tough Bitcoin rules.  New York’s top financial regulator told Bitcoin entrepreneurs he’ll prevent their companies from abetting money laundering even at the risk stamping out innovation in the embryonic virtual-currency industry.

01:13 01/28/14 Washington Post reported that the Bitcoin Foundation has accepted the resignation of Charlie Shrem, the Bitcoin.  "As a foundation, we need to remain focused on our core mission to standardize, protect, and promote the Bitcoin core protocol," Bitcoin executive director Jon Matonis said in a foundation news release. "While Charlie has contributed a great deal of personal effort and resources to enhance the adoption of Bitcoin worldwide, a prolonged legal dispute would inevitably detract from advancing that core mission."

10:38 01/28/14 Market Watch speculates that today's Bitcoin hearings in New York will panel likely emphasize bitcoin’s above-board applications, such as in payments and remittances despite the events over the weekend. 

07:22 01/28/14 Business Week that two major Nordic banks are rethinking their position on Bitcoin regarding money laundering rules... “Given the rules we have established for ourselves and rules that authorities have set up to prevent money laundering, we have currently made the decision that we cannot offer transactions, accounts or currency exchange in Bitcoin,”.

07:16 01/28/14 Business Insider has reported that the Winkelvoss Twins (BitInstant Investors) are scheduled for two-days worth of hearings the New York State Department of Financial Services TODAY.

05:30 01/27/14 The Wall Street Journal releases and interesting piece about how the Bitcoin movement can not get our from under the shadow of the shuttered Silk Road.  

05:27 01/27/14 CoinDesk reports that Manhattan US Attorney Preet Bharara issued a statement, reinforcing his office’s hardline stance toward the use of virtual currencies to commit crimes, not simply the currency itself.

03:57 01/27/14 Fortune speculated on what the arrests mean to the future of Bitcoin.  

03:40 01/27/14 Zero hedge weights in... 

U.S SAYS SHREM IS FLIGHT RISK, SHOULDN'T GET BAIL. Lock him up in the Bastille.
— zerohedge (@zerohedge) January 27, 2014

BITCOIN FOUNDATION VICE CHAIRMAN SHREM APPEARS IN N.Y. COURT. With a Hannibal Lecter face mask?
— zerohedge (@zerohedge) January 27, 2014

02:36 01/27/14 Forbes has released a article speculating the the Winkelvoss's current status as investors in BitInstant.  

02:25 01/27/14 Time has reported that the federal criminal complaint is from the  the Southern District of New York and that it charges Shrem, with three counts.  Those counts include:

   1.) one count operating an unlicensed money transmitting business

   2.) one count of money laundering conspiracy

   3.) one count willful failure to file suspicious activity report.  

Robert Faiella, a Silk Road user who operated under the name “BTCKing,” was charged with:

   1.) one count of operating an unlicensed money transmitting business

   2.) one count money laundering conspiracy.

2:25 01/27/14 Time has reported that Tyler and Cameron Winklevoss, co-founders of Winklevoss Capital  issued a statement noting that the investment in BitInstant was made after its management made a commitment to us that they would abide by all applicable laws – including money laundering laws and that they were passive investors in BitInstant and will do everything we can to help law enforcement officials. The traditionally active twitter accounts of the twins and their firm are silent about the event at this time.  

2:24 01/27/14 Deal Book has reported that both Charles Shrem (24-year-old CEO of BitInstant) and Robert Faiella (known as BTCKing) were arrested over the weekend.  Charles at JFK airport.  The arrests appear to be in relation to associations with the SilkRoad.  

01:28 01/27/14 Chicago Tribune has reported that the Shrem said in a chat ""Wow, Silk Road actually works".

01:28 01/27/14 Max Keiser questioned the wisdom of a central Bitcoin foundation.   

The Charlie Shrem incident is why many speculated about the wisdom of having a Bitcoin Foundation to begin with. Centralization sucks.
— Max Keiser (@maxkeiser) January 27, 2014

01:1001/27/14 Vocativ publishes a short but salacious profile of Shrem including a quote “I won’t hire you unless I drink with you or smoke weed with you—that’s a 100 percent fact.”


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