Charlie Shrem Resigns from Vice Chairman Post at the Bitcoin Foundation

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Charlie Shrem Resigns from Vice Chairman Post at the Bitcoin Foundation
Charlie Shrem Resigns from Vice Chairman Post at the Bitcoin Foundation

Charlie Shrem Resigns from Vice Chairman Post at the Bitcoin Foundation

After facing a lot of pressure from all corners, Charlie Shrem, accused of supporting an illicit Bitcoin exchange for users of Silk Road, the underground marketplace best known for illegal drugs, resigned from his post of Vice Chairman at The Bitcoin Foundation. ForexMinute had earlier reported that Shrem is a prominent member of the Bitcoin community who became rich at early age on his own efforts.

Charlie Shrem, who made lot money through his Bitcoin investment, was arrested for money laundering on Monday. In an allegation filed in a New York Federal Court, it is evident that Shrem knowingly sold Bitcoins to Robert Faiella, who then sold them at a markup on the Silk Road forums.

The criminal complaint says that Shrem’s company, BitInstant gave temporary credit so that transactions in the virtual currency are swift. It is a kind of favor that his company did for Robert Faiella, which according to the NY Federal Court is wrong. After Charlie Shrem was arrested, a lot of concerns came up from various quarters regarding the arrest.

According to Bitcoin Foundation, as it will be now a prolonged legal dispute, a lot of Shrem’s time will be invested in it, he won’t be able to commit for the job that is expected from him. Therefore, it is better for him to leave the organization. His resignation is effective immediately.

**relatedarticle**

Charlie Shrem Will be facing a Prolonged Legal Battle

Apart from working as the head of BitInstant, Charlie Shrem was also working as Vice Chairman of the Bitcoin Foundation, which has emerged as the premier authority on the five-year-old virtual currency. In a note released earlier, the organization requested that though Charlie Shrem has not yet been proven guilty, for probity he should resign.

On Monday, authorities arrested Shrem at John F. Kennedy airport in New York City citing that he was involved in a scheme of the selling of $1 million in Bitcoins on Silk Road. ForexMinute had reported earlier that Silk Road, a notorious drug website was closed by the authorities for violating the law.

Charlie Shrem has been kept under house arrest. With his $6 million capital, he became a millionaire when he was a teenager. The Bitcoin Foundation which is responsible for promotion of Bitcoin requested Charlie Shrem to resign; however, at the same time it accepted that he has contributed a great deal of personal effort and resources to enhance the adoption of Bitcoin worldwide.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com