Charles Shrem, a Bitcoin promoter, pleaded guilty in a Manhattan federal court just recently to a single criminal count from what prosecutors believed to be a drug scheme involving his present virtual currency exchange as well as an internet-based black market.
Shrem, 24, pleaded guilty to aiding and abetting an operation of a non-licensed money-transfer business. Robert Faiella, believed by the Manhattan attorney’s office to be Shrem’s partner, also pleaded guilty to running a non-licensed money-transfer business.
Regarding both plea deals, one of the sentencing guidelines include up to 60 months of prison time. There’s also a fine of $250,000 or twice as much money derived from the criminal activity or twice the loss to the victim. The last sentence will be decided by Jed Rakoff, a U.S. District Judge.
One important victory for Shrem was that the government made a decision to halt the laundering cout against him.
Faiella indicated in court that he didn’t know Bitcoins were utilized to purchase illegal drugs.