Bitcoin Promoter Charles Shrem Pleads Guilty

Shrem Pleads Guilty to One Count of Aiding, Abetting Unlicensed Money-Transmitting Business Bitcoin evangelist Charles Shrem pleaded guilty in a federal court in Manhattan Thursday to one criminal count stemming from what prosecutors had alleged was a drug scheme involving his virtual-currency exchange and an online black market.
Mr. Shrem, 24 years old, pleaded guilty to aiding and abetting the operation of an unlicensed money-transmitting business. Robert Faiella, who the Manhattan attorney’s office alleged was Mr. Shrem’s accomplice, also pleaded guilty Thursday to operating an unlicensed money-transmitting business.
In both of the plea agreements, the sentencing guidelines include 57- to 60-months imprisonment. There is also a maximum fine of $250,000 or twice the amount of money derived from the crime or two times the loss to the victim, whichever is greatest. The final sentence will be determined by U. S. District Judge Jed Rakoff.

This post was published at Wall Street Journal on Sept. 6, 2014.