Bitcoin exchange owners arrested

The owners of BitInstant and BTCKing(?) have been arrested on Money Laundering charges in the US.

Heres some news from the bbc website

Quote: Mr Shrem is accused of allowing Mr Faiella to use BitInstant to purchase large quantities of bitcoins to sell on to Silk Road users who wanted to anonymously buy drugs.

So according to this article they are accused of providing bitcoins to users who then purchased drugs ? So hang on, just so I’ve got this straight…. Say for example, if I was to sell bitcoins to someone who then buys drugs with them its my fault !?

Maybe I’m missing some finer detail or perhaps this is just terrible journalism and explaining it very poorly indeed.

Anyway the good news is that cheaper bitcoins seem to be here. Just like Silk Road maybe this will prove to be a great buying opportunity for those still holding some dry powder.

Heres the damage so far, chart is showing Bitstamp with 4 hour candles

To be honest, not that much of a plunge, bit disappointing if you are a power that be attempting to hurt bitcoin price. I wonder if the FBI managed to grab anymore bitcoins ..

edit: updates in comments

One thought on “Bitcoin exchange owners arrested

  1. Just as the post silk road bust, there seems to be a very bullish recovery in progress. Heres Bitstamp with 4 hour candles.

    Modified the fork slightly to encapsulate that sell off. I’d say that fork is definately influencing price. Looks like a great environment for beginnings of a rally. I’ve used this sell off to add a bit more bitcoin to my stack.

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