Hours after two US technology publications named a man living in Sydney as the creator of bitcoin, police raided his house on 9 December.However, police claimed their action was part of an investigation under the Australian Tax Office and not as a result of the reports.The raid took place on a home occupied by Craig Steven Wright, who Wired magazine and the website Gizmodo believe to be Satoshi Nakamoto, creator of the Bitcoin cryptocurrency technology.During the raid, dozens of law enforcement officers were seen inside Wright's house searching cupboards and the garage, reports said.The presence of officers at the property was "not associated with the media reporting overnight about bitcoins", one officer said.He added the officers were "clearing the house".Wired and Gizmodo made their revelations based on leaked emails, documents and transcripts of legal interviews.In an interview with the Australian Tax Office, Wright said: "I did my best to try and hide the fact that I've been running bitcoin since 2009 but I think...by the end of this half the world is going to bloody know."Garry

Hayres, the owner of the property, told Guardian Australia that Wright and his wife Ramona Watts had leased the property in November 2012.He said the couple were "typical tenants.They didn't look after the place fantastically, but it wasn't their home.They didn't seem bad."JaneWardell, deputy Australia bureau chief for Reuters, tweeted: "Australian police also raiding the offices of reported bitcoin creator Craig Steven Wright aka Satoshi Nakamoto."She added: "Landlord tells Reuters that reported #bitcoin creator Craig Wright aka Satoshi Nakamoto planning to move to UK before Christmas."Accordingto sources, Nakamoto has about 1 million bitcoins, which is worth more than $400m (£266m) at the exchange rate on 9 December.BREAKING: Australian police also raiding the offices of reported bitcoin creator Craig Steven Wright aka Satoshi Nakamoto— Jane Wardell (@TheJaneWardell) December 9, 2015by Tyler Durden Bitcoin was supposed to be perfectly anonymous and completely untraceable: so much so that its true believers, such as libertarian Ross Ulbricht, aka Dread Pirate Roberts, felt empowered to launch the Silk Road, an underground online shopping bazaar similar to Amazon only one selling drugs and various other illegal paraphernalia.

The Silk Road quickly became massively successful and extremely profitable: so much so that Ulbricht promptly forgot the idealism that made him launch the project and quickly subverted the power and wealth it provided him for his own selfish ways, among which ordering the assassinations of subordinates who crossed him.vice bitcoin youtubeIt turned out neither Bitcoin, nor the project, were as safe and anonymous as Ulbricht had hoped, and moments ago the Dread Pirate was sentenced to life in prison: a heavy sentence which according to the WSJ signals "the government’s seriousness in combating Internet crime."bitcoin forex leverageThe Silk Road founder faced a mandatory minimum of 20 years in prison, but federal prosecutors asked the judge to give him “substantially” more than that, arguing that a harsh sentence is necessary to deter others from following in Mr.move bitcoin wallet between computers

The punishment is a heavy price to pay for the 31-year-old, who had pleaded with the judge to spare him his old age and “leave a small light at the end of the tunnel.” The sentence handed down by U.S.bitcoin architect twitterDistrict Judge Katherine Forrest followed an emotional three-hour hearing.litecoin welchen poolJudge Forrest said she spent more than 100 hours grappling with the appropriate sentence, calling the decision “very, very difficult.” But ultimately, she gave Mr.bitcoin direct llcUlbricht the harshest sentence allowed under the law, saying Silk Road was “an assault on the public health of our communities” by making it easy for people around the world to buy illegal drugs.bitcoin how to verify transaction

“What you did with Silk Road was terribly destructive to our social fabric,” Judge Forrest said.buy litecoin with coinbaseJudge Forrest said Mr.bitcoin doge walletUlbricht was “no better a person than any other drug dealer” and that his high education and privileged upbringing didn’t put him above the law.Silly pirate: in America the only companies that are allowed by law to sell you drugs are the 'legal' pharmaceutical corporations, whose dealers owners use all those Obamacare-funded reimbursements from selling FDA approved anti-depressants and other mind-altering substances, to then go ahead and buy back their own stock.And yet, it is a little troubling: For manipulating "markets", rigging and defrauding tens of billions from ordinary investors many of whom lost their life savings because they trusted regulators would do their duty and keep "markets" honest and efficient, the US Department of Justice arrested precisely zero bankers.

For granting the 2018 World Cup to Russia, the same Department of Justice decided to make a loud political statement and arrest virtually the entire pinnacle of FIFA, even if the harshest sentence that will be handed down is some deferred prosecution settlement.For creating his own marketplace outside the domain of the conventional monetary regime, the US unloaded a ton of bricks on a 31 year old and sentenced him to life behind bars.Because, you know, it will deter all illegal transactions hereafter.For those who are interested in the full story of the Silk Road and how a 29-year-old revolutionized drug distribution, the following 2-part mini series by Wired is a must read.The Rise and Fall of Silk Road: Part 1 The Rise and Fall of Silk Road: Part 2From The News Desk , and Robert Faiella, operator of underground bitcoin exchange called BTCKing (alternatively BTC-KinG) were arrested and charged with conspiring to commit money laundering and operating an unlicensed money transmitting business.

Schrem is also charged with violating the Bank Secrecy Act by “willfully failing to file any suspicious activity report regarding Faiella’s illegal transactions.” Notably Schrem is also a Vice Chairman of the Bitcoin Foundation, an unofficial bitcoin trade group that aims to “standardize, protect, and promote” use of the crypto-currency.The charges against the two men stem from their dealings with Silk Road, which US Attorney Preet Bharara describes as “a dark web drug site.” In a press release issued by the US Attorney’s office, and stemming from a multi-agency investigation involving the Drug Enforcement Administration and the Internal Revenue Service, Schrem and Faiella are accused of: ...engaging in a scheme to sell over $1 million in Bitcoins to users of “Silk Road,” the underground website that enabled its users to buy and sell illegal drugs anonymously and beyond the reach of law enforcement.Faiella allegedly was the one responsible for selling said bitcoins directly into Silk Road, while Schrem allegedly allowed Faiella to purchase bitcoins through his exchange with bulk fee discounts.

According to the US Attorney’s statement, Schrem was not only aware of the ultimate destination of the bitcoins he provided, but also was a Silk Road customer, using the secret marketplace to purchase drugs for his own usage.The agencies write: Shrem knowingly allowed Faiella to use the Company's services to buy Bitcoins for his Silk Road customers; personally processed Faiella's orders; gave Faiella discounts on his high-volume transactions; failed to file a single suspicious activity report with the United States Treasury Department about Faiella's illicit activity, as he was otherwise required to do in his role as the Company's Compliance Officer; and deliberately helped Faiella circumvent the Company's AML restrictions, even though it was Shrem's job to enforce them and even though the Company had registered with the Treasury Department as a money services business.If convicted, 24-year-old Shrem could face a maximum sentence of 30 years, while 52-year-old Faiella could be looking at up to 25 years.

Both men are expected to appear in court today.It’s not uncommon for law enforcement to use tax evasion and money laundering statutes to prosecute alleged drug dealers and participants in organized crime.Silk Road was seized by the FBI in October 2013 and its alleged creator, Ross Ulbricht, aka Dread Pirate Roberts (DPR), arrested.The Feds seized a total of 174,000 bitcoins, worth more than $140 million as part of the raid and have announced plans to sell the first $25 million worth in the near future.Additional arrests stemming from this case have been widely anticipated, meaning that today's may not be the last.In a potentially related story, Wired reports that the FBI now has a full record of all email correspondence sent through the popular dark web email service TorMail, a favorite among Silk Road users.Whether that fact has any bearing on the case agains Schrem and Faiella remains to be seen.New York-based BitInstant was at one time one of the largest bitcoin exchanges in the world, but has been plagued by legal issues of late.

The company is currently the subject of a class action lawsuit filed in July by users who claim that the company misrepresented its services, specifically the speed of its services and their associated fees.The site has been unavailable, with messages reading that it’s closed for maintenance, since approximately July 13.BitInstant raised $1.5 million in Seed funding from Winklevoss Capital Management, the fund of famed Facebook litigants Tyler and Cameron Winkelvoss, as well as angel investor David Azar.The Winklevosses, who are believed to be among the largest private holders of bitcoin wealth, issued the following statement to PandoDaily regarding today’s news: 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.Although BitInstant is not named in today’s indictment of Charlie Schrem, we are obviously deeply concerned about his arrest.

We were passive investors in BitInstant and will do everything we can to help law enforcement officials.We fully support any and all governmental efforts to ensure that money laundering requirements are enforced, and look forward to clearer regulation being implemented on the purchase and sale of bitcoins.The founder of a prominent bitcoin company provided the following statement to PandoDaily on the condition on anonymity: I don't know enough to comment too much on [the arrests].It comes at a strange time with the NY hearings this week, but I think that [Fred Wilson] and [Jeremy Liew] are going to do a great job helping the regulatory bodies and media understand the difference between the bitcoin companies that are working with the government to bring technology that will improve peoples lives to the world, and the companies that are operating for political and ideological reasons without being mindful of the regulatory landscape.As the founder notes, these arrests come at a pivotal time in bitcoin’s maturation.