BTC Entrepreneur Charlie Shrem Begins 2-Year Sentence; Fed agents charged for BTC theft

Bitinstant CEO Charlie Shrem begins his two-years sentence on March 30 at Lewisberg Federal Prison Camp in Pennsylvania.

Shrem used his Bitcoin exchange, to transfer money deposited in bank accounts by customers of the Silk Road—the notorious deep web drug marketplace.

The entrepreneur was arrested at New York’s JFK Airport and was charged with failing to report suspicious banking activity and laundering over $1 million worth of BTC to Silk Road users in April. He pleaded guilty to a reduced charge of aiding unlicensed money transmitting service and was sentenced to two years in prison in December. He was set to surrender in 90 days.

Shrem told CoinDesk that he was hoping to only serve 9-10 months and that “while it’s hardly going to be a pleasant experience, it could be a lot worse.