Scruffy-faced New York City Bitcoin playboy Charlie Shrem is in some seriously hot water and deep, too.Perhaps as deep as the known partier might have been into Silk Road, where he allegedly scored drugs and poured money into the underground drug trade.The outspoken 24-year-old former vice chairman of the Bitcoin Foundation and former CEO of the popular BitInstant exchange, a Bitcoin-rich millionaire who dubbed himself “Charlie Van Bitcoin,” is currently under house arrest at his parents’ Brooklyn residence.A prodigal millennial back at home with his parents.News of Shrem’s new domestic “situation” follows the flashy Bitcoin evangelist’s indictment over his alleged role in laundering some $1 million on the “Amazon of the black markets,” the anonymous ecommerce site Silk Road.The Feds shook down and shut down the “online drug bazaar” last October.Last month, authorities announced the grand jury indictment of Ross Ulbricht, a.k.a.“Dread Pirate,” the alleged mastermind of the shady marketplace.

Related: BitInstant CEO Arrested for Alleged Ties to Silk Road Shrem himself reportedly trolled Silk Road to buy drugs, likely weed, for himself.He was formally indicted April 10 following a failed bid to reach a plea bargain agreement.bitcoin shares per blockDepartment of Justice arrested him on Jan.bitcoin bubble crash27 at JFK Airport on money laundering charges related to accusations that he sold more than $1 million worth of BTC to Silk Road sharks to use to score drugs and other illegal goods.bitcoin japan scandal27, the Feds also arrested Florida restaurant owner Robert Faiella, Shrem’s alleged co-conspirator, the self-crowned “BTCKing.” According to the Justice Department’s criminal complaint, the charges filed against Shrem and Faiella include “conspiring to commit money laundering, and operating an unlicensed money transmitting business.” Additionally, Shrem is charged with “willfully failing to file any suspicious activity report regarding Faiella’s illegal transactions through the Company, in violation of the Bank Secrecy Act.” Shrem is scheduled to be arraigned in two weeks in front U.S.bitcoin in euro auszahlen

District Judge Jed Rakoff.His lawyer, Marc Agnifilo, has said that his client intends to plead not guilty.If convicted, the Bitcion baron and media darling could serve a 20-year prison sentence.Related: Alleged Founder of Silk Road Pleads Not Guilty, Will Stand Trial in November BitInstant, which Shrem founded while still an undergrad in 2011 and the Winklevoss twins backed with $1.5 million in seed money, went dark the day of Shrem’s initial arrest.bitcoin üye olThe company is at the epicenter of a class-action suit filed on behalf of customers.bitcoin block confirmation timeThey claim that the BitInstant falsely represented its services and failed to properly carry them out.Shrem was an early Bitcoin adopter and champion, reportedly buying 500 BTC during his senior year at Brooklyn College, back when they were still a bargain at around $3 or $4 each.

When the price rose to $20 he purchased “thousands more.” At press time, the Bitcoin price neared $500 at $492.99, according to the CoinDesk Price Index.The controversial and widely misunderstood cryptocurrency has bumped along a rocky road in the wake of the fall of Mt.Gox, only compounded by rumors that the People’s Bank of China (PBOC), China’s central bank, was considering imposing limits on Bitcoin transactions.The price shot up by approximately 10 percent after PBOC governor Zhou Xiaochuan’s recent reassurance that the bank won’t ban Bitcoin.Related: Cameron Winklevoss: A 'Sheriff' for Bitcoin's Wild West Is a Good ThingCharles "Charlie" Shrem IV (born November 25, 1989)[1] is an American entrepreneur and bitcoin advocate.He co-founded the now-defunct startup company BitInstant, and is a founding member of the Bitcoin Foundation, formerly serving as vice chairman.In 2017, he joined Jaxx as its director of business and community development.In December 2014 he was sentenced to two years in prison for aiding and abetting the operation of an unlicensed money-transmitting business related to the Silk Road marketplace.

He was released from prison around June 2016.Contents 1 2 3 4 5 6 Shrem was born and raised in Brooklyn, New York.[2]He is an alum of Yeshivah of Flatbush,[3] and graduated from Brooklyn College in 2012 with a Bachelor of Science in Economics and Finance.[2][4]He is of Syrian Jewish descent.[3][4]As a college senior in 2011, Shrem started investing in bitcoin.Soon after, the bitcoin service Shrem was using crashed, and he lost his bitcoins.Shrem and Gareth Nelson, a friend he met online, had similar frustrations with the length of time it took to buy and sell bitcoin on exchange sites.They started BitInstant, a more user-friendly company that charged a fee for users to purchase and make purchases with bitcoins at over 700,000 locations, providing temporary credit to speed up transactions.[1][5]Initially a side project, BitInstant soon needed to grow, at which point Shrem received a $10,000 loan from his mother.[1][6]Shortly thereafter, BitInstant received $125,000 from angel investor Roger Ver,[5] and, in the fall of 2012, $1.5 million from a group of investors led by Winklevoss Capital Management.[7]

By 2013, BitInstant was processing approximately 30% of all bitcoin transactions.[7]BitInstant operated from September 2011 until July 2013.[8][9]At the Bitcoin 2013 conference in San Jose, California, Shrem spoke about the challenges facing bitcoin companies and the need for them to comply with regulations, as well as the challenges of properly explaining the value and mainstream potential of bitcoin.[10]He has described himself as a bitcoin purist, who believes in bitcoin as a technology that will help the world by allowing citizens to protect their money without banks and other traditional financial institutions.[11]Shrem is a founding board member of the Bitcoin Foundation, founded in 2012 with a mission to standardize and promote bitcoin.[6][12]He was formerly vice chairman, resigning after his January 26, 2014 arrest.[13]Shrem is featured in The Rise and Rise of Bitcoin (pt), a documentary directed by Nicholas Mross that explores the origins and development of bitcoin.It premiered at the 2014 Tribeca Film Festival.[14]

Shrem participated in a panel discussion following the screening.[15]He is also featured in the 2016 documentary film Banking on Bitcoin, discussing how bitcoin technology will shape lives,[16] and in the 2015 book Digital Gold by Nathaniel Popper, which covers the rise of bitcoin.[17]After his release from 24-hour house arrest in May 2014, with the conditions that he must abide by a curfew,[18] remain in New York City and wear a GPS monitoring device,[19] Shrem spoke at bitcoin industry events, worked as a business development consultant for payments startup Payza, and advised two Brooklyn Holiday Inn hotels on preparations to accept bitcoin for payment.[15][20][21][22]He was imprisoned from March 30, 2015, until his release around June 2016.[23][24]On November 22, 2016, Shrem announced a new venture, Intellisys Capital.Shrem serves as chief technology officer, alongside co-founder and CEO Jason Granger.[25]The startup's fund, Mainstreet Investment LP, will offer cryptocurrency tokens issued on the ethereum blockchain representing shares in a portfolio of companies involved in manufacturing, real estate and sanitary waste.

Owners of the tokens will own a piece of the companies in the portfolio.The fund will be 30% owned by token holders, with the remaining 70% owned by Intellisys Capital.[26]Mainstreet acquisitions will be directed by Shrem and Granger, with dividends paid to investors over the ethereum blockchain, and invested in blockchain technology companies.[26][27]Intellisys is headquartered on the Cayman Islands, and the Mainstreet fund is closed to investors in the US and Europe.[27]Tokens will be sold beginning in early 2017.[25]In May 2017, Shrem joined Jaxx as its director of business and community development.The multi-platform blockchain wallet developed by Decentral enables users to control their digital assets.[28][29]While in high school, Shrem started Epiphany Design and Production, a company that fixed printers and computers.[30]In 2009, while attending Brooklyn College, Shrem launched the start-up Daily Checkout, a daily deal website that sold refurbished used goods.Daily Checkout was acquired by BlueSwitch in 2012.[4][30]

Shrem is a co-owner of Manhattan bar EVR, which opened in 2013 and, in April of that year, became the first bar in New York to accept bitcoin as a form of payment.[31][32]On January 26, 2014, upon returning to New York from an e-commerce convention in Amsterdam, Shrem was arrested at JFK Airport.[5]Prosecutors alleged that Shrem and Robert Faiella conspired to launder $1 million worth of bitcoins to help users of the Silk Road marketplace anonymously make illegal purchases.Shrem was also charged with failing to report suspicious banking activity and operating an unlicensed money-transmitting business.[33][34][35]Shrem was released on bail on January 28, 2014, on the condition that he submit to electronic monitoring and live with his parents in their Marine Park, Brooklyn home.His family posted almost $1 million in property for bail.[36]At the Texas Bitcoin Conference on March 5, 2014, he defended himself via Skype, saying he did not knowingly handle money used for illegal transactions, and that he feels prosecutors are pursuing him out of a fear that bitcoin could shift economic power.[35][37]

Shrem was indicted on April 10, 2014 on accusations of "operating an unlicensed money transmitting business, money laundering conspiracy and willfully failing to file suspicious activity reports with banking authorities."[38]On September 4, 2014, he pleaded guilty to a reduced charge of aiding and abetting unlicensed money transmission.[39][40]On December 19, 2014, he was convicted of aiding and abetting the operation of an unlicensed money transmitting business, ordered to forfeit $950,000, and sentenced to two years in prison.[41][42][43]He surrendered himself to authorities on March 30, 2015, and subsequently entered Lewisburg Federal Prison Camp in Pennsylvania.[23]He was released from prison around June 2016.[24][44]^ a b c Max Raskin, “Meet the Bitcoin Millionaires,” Bloomberg Businessweek, April 10, 2013.^ a b ^ a b Michael Kaminer, “Bitcoin’s Jewish Whiz Kid,” The Forward, February 23, 2014.^ a b c Robin Sidel, “Hard Times for a Bitcoin Evangelist,” Wall Street Journal, February 5, 2014.

^ a b c Adrianne Jeffries and Russell Brandom, “The coin prince: inside Bitcoin’s first big money-laundering scandal,” The Verge, February 4, 2014.^ a b ^ a b ^ Kashmir Hill, “Winklevosses, Bitcoin Community Shocked By Arrest of BitInstant CEO Charlie Shrem,” Forbes, January 27, 2014.^ Kyle Russell, “Meet The ‘Bitcoin Millionaire’ Arrested For Allegedly Helping Silk Road Launder $1 Million,” Business Insider, January 28, 2014.^ ^ Shruti Tripathi, “How 23-year-old Charlie Shrem became a millionaire through Bitcoin,” London Loves Business, May 7, 2013.^ Jon Matonis, “Bitcoin Foundation Launches To Drive Bitcoin’s Advancement,” Forbes, September 27, 2012.^ Donna Leinwand Leger, "Bitcoin pioneer facing federal charges quits foundation," USA Today, January 28, 2014.^ "Tribeca Announces All Star Lineup for 2014 Tribeca Talks Series; Kevin Spacey, Aaron Sorkin, and Lee Daniels On Tap," Indiewire, March 17, 2014.^ a b Robin Sidel, “Bitcoin Evangelist Is Bound but Not Out,” Wall Street Journal, June 30, 2014.

^ Olusegun Ogundeji, "'Banking on Bitcoin' Film Released in Hopes of Attracting Millions of New Users," CoinTelegraph, January 10, 2017.^ John Biggs, "Nathaniel Popper's Digital Gold Sheds Light On The Rise Of Bitcoin," TechCrunch, May 26, 2015.^ "Charlie Shrem tells Bitcoin war stories," Bitcoin Knowledge Podcast, October 25, 2014.^ Daniel Cawrey, “Charlie Shrem No Longer Under 24-Hour House Arrest,” CoinDesk, May 22, 2014.^ Christine Lagorio-Chafkin, “House Arrest Not Keeping Charlie Shrem Down,” Inc., July 1, 2014.^ Stan Higgins, “Charlie Shrem to Address Banking Industry at New York Bitcoin Conference,” CoinDesk, July 1, 2014.^ Michael del Castillo, “While indicted, Charlie Shrem brought bitcoin to these 3 industries,” Upstart Business Journal, July 1, 2014.^ , July 19, 2016.^ , July 27, 2016.^ a b Brady Dale, "Bitcoin Pioneer Launches First Venture Since Prison," New York Observer, November 23, 2016.^ a b Peter Rizzo, "Bitcoin Pioneer Charlie Shrem Launches New Blockchain Venture," CoinDesk, November 23, 2016.

^ a b Jordan Pearson, "Bitcoin's First Felon Wants to Use Ethereum to Buy Up Michigan's Waste Industry," Vice, January 5, 2017.^ Avi Mizrahi, "Bitcoin Pioneer Charlie Shrem Joins Jaxx Blockchain Wallet," Finance Magnates, May 8, 2017.^ Alexander Geralis, "Bitcoin Advocate Charlie Shrem Joins Multi-Platform Wallet Jaxx as Business Development Director," CoinTelegraph, May 9, 2017.^ a b Eric Markowitz, “My Night Out With Bitcoin Millionaire and Proud Stoner Charlie Shrem,” Vocativ, December 5, 2013.^ ^ Jessica Roy, “It’s All About the Bitcoin, Baby,” New York Observer, April 30, 2013.^ Patricia Hurtado, “Bitcoin Group Says Shrem Quit Board After Arrest,” Bloomberg Businessweek, January 28, 2014.^ ^ a b Andy Greenberg, “Arrested Bitcoin Mogul Charlie Shrem Defiant In First Public Appearance Since Criminal Charges” Forbes, March 5, 2014.^ ^ Paul Vigna, “Bitcoin’s Shrem Defends Himself in Public Appearance,” Wall Street Journal, March 6, 2014.^ Patricia Hurtado, "Ex-Bitcoin Foundation's Shrem Indicted After Plea Talks," Bloomberg Businessweek, April 14, 2014.