Bitcoin exchange chief arrested on suspicion of money laundering
Bitcoin, the upstart virtual currency, has become mired in scandal following the arrest of the chief executive of a New York Bitcoin exchange on suspicion of money laundering.
Charlie Shrem ran BitInstant.com, a website enabling people to trade the virtual currency for real world alternatives, but now stands accused of attempting to sell $1m worth of Bitcoins to a Silk Road user.
The pair were picked up by detectives after touching down at John F. Kennedy airport and are currently being questioned.
It is an embarrassing turn of events for the Tyler and Cameron Winklevoss, made famous with their claim to have formed Facebook, who had attempted to bring respectability to the ‘crypto-currency’ by investing $20m in the sector through their Bitcoin Investment Trust.
The twins have direct links to Shrem after investing a further $1.5m in BitInstant, which is a partner of the Winklevoss’s trust.