Bitcoin’s ‘First Felon’ Charlie Shrem Begins 2-Year Sentence

prison sentence

Bitcoin entrepreneur Charlie Shrem begins his stint in prison today, having been sentenced in December to two years behind bars.

The 25-year-old will serve his time at Lewisburg Federal Prison Camp in Pennsylvania for aiding and abetting the operation of an unlicensed money transmitting business.

“Of course I’m scared, but I’ll get through it. I’ve prepared,” he told CoinDesk in a recent interview.

Of his 24-month sentence, Shrem hopes to only serve nine or 10 months and indicated that, while it’s hardly going to be a pleasant experience, it could be a lot worse.

He will be sharing a cell with two or three other inmates at the minimum-security facility, which houses around 465 male offenders.

“There are no fences and there’s baseball, basketball, tennis, a library, etc,” he explained.

The charge

At the age of 22, Shrem was the CEO of bitcoin exchange BitInstant. While working at this company, he violated anti-money laundering duties by dealing with Robert Faiella, who supplied $1m in digital currency to people buying drugs on the now-defunct online marketplace Silk Road.

Faiella, who went by the alias of ‘BTCKing’, was sentenced in January to four years imprisonment.

Both Shrem and Faiella entered plea bargains, Read more ... source: CoinDesk