Former CEO Of Bitcoin Exchange Company Sentenced In Manhattan Federal Court To Two Years In Prison For Helping To Sell Nearly $1 Million In Bitcoins For Drug Buys On Silk Road

December 19, 2014:  Preet Bharara, the U.S. Attorney for the Southern District of New York, announced that the former CEO and Compliance Officer of BitInstant, a Bitcoin exchange company, and the former Vice Chairman of the Bitcoin Foundation, was sentenced to two years in prison for his role in knowingly transmitting nearly $1 million in bitcoins intended to facilitate drug trafficking on “Silk Road,” a black-market website designed to enable users to buy and sell illegal drugs anonymously and beyond the reach of law enforcement. Shrem pled guilty in September 2014 before U.S. District Judge Jed S. Rakoff, who also imposed the sentence.

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