Bitcoin Entrepreneur, Charlie Shrem, to plead guilty as part of deal

Charlie Shrem

On Friday, it was announced that Bitcoin entrepreneur and former Vice Chairman of the Bitcoin Foundation, Charlie Shrem, will be pleading guilty to the charge of unlicensed money transmission. He faces up to 5 years of prison.

In January of this year, Charlie Shrem was arrested upon returning to New York from a conference in Amsterdam. His arrest was in connection to his company, BitInstant, a website that allowed users to buy and sell Bitcoin. Some of the sellers on his site were Silk Road users, the black market illicit goods trading site, leading the US Federal Government to go after him.

Prosecutors charged Shrem with operating an unlicensed money transmitting business, money laundering conspiracy and failing to file suspicious activity reports with government banking authorities. He has been subject to house arrest since January.

Update Sep. 4th, 2014: Reuters is reporting that the plea deal includes a fine of $950,000

Update Sep. 5th, 2014 : Charlie Shrem Pleads Guilty - Sentencing to occur on Jan. 20th