Prominent Bitcoin entrepreneur charged with money laundering

Comments (10)
Harry079 wrote:

I would think that buying, selling or trading imaginary money would be a crime in itself.

Unless your the Federal Reserve or US Treasury then it’s just fine.

Jan 27, 2014 11:43am EST  --  Report as abuse
msimard8 wrote:

@Harry079 All money is imaginary. Money is just numbers on a computer. Its the Federal Reserve’s job to give it artificial value to make the people believe it is real.

Jan 27, 2014 11:51am EST  --  Report as abuse
agables wrote:

So the Fed’s don’t go after HSBC for laundering drug cartel money but instead choose to go after bitcoin and Silk Road. Someone is not sane in their membrane.

Jan 27, 2014 12:52pm EST  --  Report as abuse
mb56 wrote:

I’m not a big fan of Bitcoin… but I’m having a difficult time seeing how the money laundering charge is going to stick here. Money laundering is typically defined as “knowingly engaging in a financial transaction with the proceeds of a crime for the purpose of concealing or disguising the illicit origin of the property from governments.” (Wikipedia). Seems to me, unless it can be proven that the defendants had active knowledge of *exactly* what the transactions were for and how the funds involved were generated (which would required knowledge of the TRUE identities of the parties)… that “money laundering” is a real stretch. *IF* they acted simply as an exchange with no knowledge of the actual transactions or source of funds, I don’t get it. Perhaps someone more knowledgeable can comment?

Jan 27, 2014 1:22pm EST  --  Report as abuse
UScitizentoo wrote:

And Jamie Dimon walks with billions in illegal profits.
If you’re a criminal it’s better to be a banker contributing to congress rather than a drug dealer.

Jan 27, 2014 1:29pm EST  --  Report as abuse
doitright wrote:

bitcoin is is all about laundering money.if a person is able to transfer funds without being noticed by anybody,it is laundering money.paying off a government official with bitcoins is bribery.transfering bitcoins outside the u.s. border is laundering illegal money.i believe anyone involve in bitcoin is laundering money.why do anyone has a need for it? unless it is for something like funding terrorist or something illegal.if there is something you want, you have the options like cash,checks,credit cards or wired transfers.bitcoins are design to fund illegal activities.

Jan 27, 2014 2:56pm EST  --  Report as abuse
ccchambers wrote:

Since there are no regulations about Bitcoin, and Bitcoin is not usually considered to be money, Shrem will probably not be convicted of money laundering. Moreover, the feds should not be charging Shrem with money laundering since they themselves do not consider Bitcoin to be money.

Corey Chambers, The Bitcoin Blogs

Jan 27, 2014 7:45pm EST  --  Report as abuse
lylelwr wrote:

well Duh! — Bitcoin was invented by thieves for other thieves to use. That was the whole point of creating imaginary money. Now we’re all going to act surprised that there is illegal activity going on?

Jan 27, 2014 7:55pm EST  --  Report as abuse
cisengineer wrote:

@mb56 That is a very good question, one that I’m wondering about as well. (unlike the ignorant comments from doitright, lyelwr) I trade bitcoins through exchanges as well as and I shudder to think that they can somehow charge me as a conspirator in whatever people do with the coins I’ve sold?! Ridiculous if that is what they are charged with here. Seems to me they are just using scare tactics and FUD to try and hurt the Bitcoin economy.

Jan 27, 2014 8:57pm EST  --  Report as abuse
tonyalfidi wrote:

The latest Bitcoin saga of Silk Road arrests fills out The Haiku of Finance for 01/27/14: Bitcoin enables money laundering and other illicit activities.

Jan 28, 2014 12:45am EST  --  Report as abuse
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