Charlie Shrem, formerly a director at the bitcoin exchange Bitinstant, has been sentenced to a prison sentence of two years. He busied himself with the sale of bitcoins for illegal transactions on Silk Road.
The district court in New York ruled that Shrem two years the cell needs for its illegal activities on the bitcoin market, reports Bloomberg. He had earlier this year already said to be guilty of ‘laundering’ money through bitcoins for transactions on Silk Road, a notorious black market that is accessible via the Tor network and where, among other drugs and weapons are sold.
Shrem expressed regret for his actions and asked the court to release him, so that he and others can keep in order not to make the same mistakes. The court went on, however, not in. With the imprisonment should be made clear that legislation concerning such commercial practices are to be taken seriously, according to the court.
The 24-year-old director of the now-defunct Bitinstant gave bitcoins to the 52-year-old Robert Faiella, who also for the court to justify it. Faiella used the bitcoins for illegal transactions on Silk Road and has already declared to be guilty. Shrem is accused that he knew that he supplied bitcoins for illegal activities were meant to be.