by Free Britney at . Comments

Federal agents have arrested Charlie Shrem, CEO of Bitcoin exchange BitInstant, for money laundering in connection with online drug exchange Silk Road.

The U.S. attorney's office said Shrem helped someone he hadn't met in person, Robert Faiella, sell more than $1 million worth of bitcoins to Silk Road customers.

Shrem was arrested at JFK Airport Sunday. Faiella, his 52-year-old partner, allegedly ran an underground Bitcoin exchange using the alias BTCKing.

He was arrested at his home in Cape Coral, Fla. Both are charged with conspiracy to launder money and operating an unlicensed money transmitting business.

Additionally, Shrem faces a charge for not tipping off the government.

Shrem, 24, is a major player in the Bitcoin world. The BitInstant exchange, based in New York City, lets people buy bitcoins locally at more than 700,000 locations.

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by Free Britney at . Comments

Welcome back to freedom.

With those words, the Dread Pirate Roberts himself declared Silk Road open for business once again, following the FBI raid that shut it down this fall.

Yes, like a phoenix rising from the ashes, Silk Road is back up and ready to serve as your torrent-based online hookup for god only knows what.

Silk Road Marketplace

"This overhaul marks the dawn of a brand new era for hidden services," proudly wrote the DPR on Reddit, where the grand reopening was announced.

While acknowledging that the FBI shut down Silk Road, he claims its strategy do "divide, conquer and eliminate" failed and the site is fully operational.

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by Free Britney at . Comments

U.S. law enforcement authorities raided and have have shut down the online drug and criminal activity marketplace Silk Road, according to reports.

The FBI arrested Silk Road owner Ross William Ulbricht, 29, also known as "Dread Pirate Roberts," in California on Tuesday, court filings indicate.

Silk Road Grab

Federal prosecutors in New York charged Ulbricht with narcotics trafficking conspiracy, computer hacking conspiracy and money laundering conspiracy.

"Silk Road has emerged as the most sophisticated and extensive criminal marketplace on the Internet today," FBI agent Christopher Tarbell said.

According to Tarbell, the site was used by "several thousand drug dealers" to buy and sell "hundreds of kilograms of illegal drugs" among other items.

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