Bitcoin exchange CEO faces Silk Road-related money laundering charges

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The CEO of Bitcoin exchange BitInstant was arrested on Sunday and now faces money laundering charges linking him with shady deals made through Silk Road.

Charlie Shrem was reportedly apprehended at New York's John F. Kennedy International Airport, a Monday article from CNN Money revealed. According to federal prosecutors, Shrem is accused of helping a Florida man, Robert Faiella, sell more than $1 million worth of bitcoins to customers using Silk Road – a black market that existed on the Deep Web, which was accessible through the Tor network.

Shrem and Faiella are charged with conspiracy to launder money and with operating an unlicensed money transmitting business, the article said. Twenty-four-year-old Shrem is additionally charged for not notifying law enforcement about what allegedly occurred.

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