Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

1/28/2014 (2 years ago)

Catholic Online (www.catholic.org)

Narcotic Web site 'Silk Road,' worked with Bitcoins exclusively

The CEO of Bitcoin exchange BitInstant Charlie Shrem, along with the man behind an illicit narcotic Web site called "Silk Road" have been arrested by U.S. federal agents on suspicion of money laundering.

Robert Faiella, the man behind the Silk Road Web site. Inset: What Silk Road sold online.

Robert Faiella, the man behind the Silk Road Web site. Inset: What Silk Road sold online.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

1/28/2014 (2 years ago)

Published in Politics & Policy

Keywords: Bitcoinds, Silk Road, money laundering, Charlie Shrem, Robert Faiella


LOS ANGELES, CA (Catholic Online) - Robert Faiella, the man behind Silk Road is accused of selling more than $1 million worth of bitcoins to his Web site customers. Fifty-two-year-old Faiella of Florida is accused of running an underground Bitcoin exchange under the alias of "BTCKing."

Shrem was arrested at John F. Kennedy International Airport in New York this weekend. Faiella was arrested at his home in Cape Coral, Florida on Monday. Both men are charged with conspiracy to launder money and operating an unlicensed money transmitting business. Shrem faces an additional charge for not alerting federal agents to what was allegedly going on.

Join in the worldwide fight against malaria --

The 24-year-old Shrem is a major player in the Bitcoin world. Based in New York City, the BitInstant exchange lets people buy bitcoins locally at more than 700,000 locations in the United States, as well as Brazil, Russia and elsewhere.

BitInstant received a $1.5 million investment last year from Cameron and Tyler Winklevoss. Shrem is also vice chairman of the Bitcoin Foundation, one of the currency's biggest advocates.

The Winklevoss twins said that they are "deeply concerned" about Shrem's arrest in an email message.

"When we invested in BitInstant in the fall of 2012, its management made a commitment to us that they would abide by all applicable laws - including money laundering laws - and we expected nothing less," they said.

Faiella first appeared on Silk Road as BTCKing in late 2011. The black market Web site only lets people buy and sell goods with bitcoins. Faiella made a business of exchanging cash for bitcoins . and that's where Shrem's bitcoin exchange came in handy.

According to an investigation by the Internal Revenue Service, Shrem sold Faiella the bitcoins that eventually made their way to drug buyers and sellers. Shrem knew full well where the money wound up and never reported it to the Treasury Department, according to the U.S. attorney.

Federal documents cite email exchanges between Shrem and Faiella that show how close they worked together. Although Shrem only knew Faiella by his pseudonym BTCKing, Shrem help keep Faiella from the long arm of the law. In one of several instances, when Faiella's frequent and large cash deposits raised eyebrows at a cash processing company, Shrem advised Faiella on how to "lay low."

To gather evidence against Shrem and Faiella, federal agents posed as Silk Road users and bought bitcoins from Faiella. According to the court documents, agents then traced the money they paid, which led them to Faiella and eventually Shrem.

Pope Francis calls for your 'prayer and action'...

---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2015 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for February 2016
Universal:
That prisoners, especially the young, may be able to rebuild lives of dignity.
Evangelization: That married people who are separated may find welcome and support in the Christian community.



Comments


More Politics & Policy

Deal with the Devil or practical politics? Is there a pro-life case for Bernie Sanders? Watch

Image of Would a pro-life strategy that involves Bernie Sanders be a deal with the devil, or a practical strategy?

By Marshall Connolly, Catholic Online (CALIFORNIA NETWORK)

A lot of Catholics like Bernie Sanders. Recently, we saw an outpouring of support of the candidate in the comments under an excellent article written by Deacon Keith Fournier. Many Catholics appreciate Sander's stance on some social issues - after all, he is a ... continue reading


Bernie Sanders surprises many with sudden surge in New Hampshire Watch

Image of Maintaining a low profile for presidential candidate Bernie sanders is more difficult now, as he comes to the forefront. Photo courtesy of Reuters.

By Catholic Online (CALIFORNIA NETWORK)

Seen by many as a humble Senator with big ideas, the relatively unknown, until recently, Bernie Sanders seemed at first to pose no threat to Hilary Clinton for the Democratic nomination in the 2016 presidential race. That has changed noticeably - Sanders is ... continue reading


What's going on with the New Hampshire primary? Watch

Image of New Hampshire kicked off the primaries this year and so far Bernie Sanders is in the lead (iStock).

By Kenya Sinclair (CALIFORNIA NETWORK)

The first votes have been cast in the New Hampshire primary. In keeping with tradition, the voting began at midnight, as it has for every primary since 1960.  LOS ANGELES, CA (Catholic Online) - Today marks the beginning of an exciting political shift in the ... continue reading


CURTAIN CALLED: GOP debate starts hilariously as candidates fail to appear on cue Watch

Image of When candidates Marco Rubio and Jeb Bush's names were announced, the two men were still blocking their way. Sneaking past, Jeb grinned and bumped Donald Trump. Photo courtesy of ABC News.

By Catholic Online (CALIFORNIA NETWORK)

It is a bit trivial to say about such an important event - but the GOP presidential debate in New Hampshire this weekend could have done with a bit more rehearsal. Candidate Ben Carson came out too early, Donald Trump stood with Carson, and candidates Marco ... continue reading


'Faith is the great cure for fear': Obama speaks at annual National Prayer Breakfast in WA Watch

Image of At the annual National Prayer Breakfast, Obama spoke against Muslim stereotypes and hatred (AP).

By Kenya Sinclair (CALIFORNIA NETWORK)

During the annual National Prayer Breakfast in Washington, President Barack Obama spoke of God, fear and love. LOS ANGELES, CA (Catholic Online) - At the breakfast, both Democrats and republicans set aside their differences to build relationships based on their ... continue reading


After Iowa fail, Donald Trump vows to 'beat the ____ out of ISIS' Watch

Image of Many noted that Donald Trump seemed unusually subdued in New Hampshire. He claimed that he remained optimistic after his second place finish in the Iowa primary. Photo courtesy of Reuters.

By Catholic Online (CALIFORNIA NETWORK)

While he faced defeat in the Iowa caucuses, GOP presidential candidate Donald Trump was full of his usual bluster in New Hampshire. Never one to mince words, he vowed to "beat the ___ out of ISIS" if he was elected president. LOS ANGELS, CA (Catholic Online) - ... continue reading


'Ted Cruz didn't win Iowa, he stole it': Trump furiously rants on Twitter about Cruz's win demanding a new Iowa 'election' Watch

Image of Donald Trump calls for a new election or to nullify Cruz's results (Reuters).

By Thomas Heed (CALIFORNIA NETWORK)

When news of the Cruz campaign "mistake" concerning Ben Carson at the Iowa caucus reached Donald Trump, he was furious. The business tycoon took to Twitter to call for a new election or to nullify Cruz's results. LOS ANGELES, CA (Catholic Online) - Despite his initial ... continue reading


Republican Candidate Drops Out of Presidential Race: But who was it? Watch

Image of

By Abigail James (CALIFORNIA NETWORK)

Following a disappointing show in the Iowa caucus, with only 4.5 percent of the votes, Kentucky Senator Rand Paul has officially dropped out of the 2016 presidential race. LOS ANGELES, CA (Catholic Online) - "It's been an incredible honor to run a principled campaign ... continue reading


Political sabotage: Ted Cruz pleads GUILTY to wronging Ben Carson at Iowa caucus Watch

Image of Ted Cruz admitted his campaign started the lie that Ben Carson was dropping out of the race prior to the Iowa caucus (NY Times).

By Thomas Heed (CALIFORNIA NETWORK)

In a shocking admission, Ted Cruz admits his staff spread rumors of Ben Carson dropping out of the runnings just before the Iowa caucus voting began. LOS ANGELES, CA (Catholic Online) - As previously reported, the Iowa caucus was filled with surprises that included ... continue reading


A Night of Surprises: What went down during the Iowa caucuses? Watch

Image of Iowa caucus surprises with historical neck-and-neck race and Trump in second place.

By Thomas Heed (CALIFORNIA NETWORK)

The Iowa caucus results are in after a high-energy night fueled by rumors of foul-play, coin tosses and the waning smile of a smug Trump. LOS ANGELES, CA (Catholic Online) - Before the Iowa caucus, polls showed presidential hopeful Donald Trump as the leading ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

  • Stations of the Cross - Fourth Station: Jesus meets his mother HD Video
  • Take this thought provoking Stations of the Cross survey
  • St. Scholastica: Saint of the Day for Wednesday, February 10, 2016
  • Daily Readings for Wednesday, February 10, 2016
  • Palm Sunday HD Video
  • Can you answer these four challenging questions about Lent?
  • 10 important things to consider during Lent

Daily Readings

Reading 1, First Kings 8:22-23, 27-30
22 Then, in the presence of the whole assembly of Israel, Solomon stood ... Read More

Psalm, Psalms 84:3, 4, 5, 10, 11
3 Even the sparrow has found a home, the swallow a nest to place its ... Read More

Gospel, Mark 7:1-13
1 The Pharisees and some of the scribes who had come from Jerusalem ... Read More

Saint of the Day

Saint of the Day for February 9th, 2016 Image

St. Apollonia
February 9: St. Apollonia, who died in the year 249, was ... Read More