Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Bitcoin dealer sentenced to four years in US prison

Bitcoin dealer sentenced to four years in US prison/AFP

Bitcoin dealer sentenced to four years in US prison/AFP

NEW YORK, Jan 21- A New York court Tuesday handed a four year prison sentence to a Bitcoin exchange operator who sold virtual currency used to buy drugs on the Silk Road underground website.

Robert Faiella, 55, and an accomplice were charged with conspiracy to commit money laundering and running an unlicensed money transmitting business.

Faiella, who pleaded guilty in September 2014, was also ordered to pay $950,000.

He and accomplice Charlie Shrem, 25, were accused of running a company allowing people to use cash to buy Bitcoins, and issuing $1 million in the virtual currency that is based on a mysterious computer algorithm.

Shrem was convicted to two years in prison on December 19.

Meanwhile Silk Road was closed by US authorities in 2013, and its alleged mastermind, Ross Ulbricht, is on trial in New York.

Manhattan federal prosecutor Preet Bharara said in a statement that from December 2011 to October 2013, Faiella sold Bitcoins on Silk Road — which only accepts payment in the virtual currency — under the pseudonym “BTCKing.”

Using New York based company BitInstant, whose chief executive was Shrem, Faiella exchanged money for Bitcoins, pocketing a commission.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...