There is never a boring day in the world of cryptocurrency. The CEO of Bitcoin Inc mentioned on Twitter that he had been arrested in his home by the Department of Homeland Security. According to the information shared with us, this arrest is the direct result of a Bitcoin transaction dating back to November of 2016. For now, he has been released on a personal recognizance bond.
The Story of The Bitcoin Inc CEO
There is a lot of interesting information to be found in this particular story. It all began when the CEO of Bitcoin Inc – not to be confused with the CEO of Bitcoin the currency, as such a position doesn’t exist – got arrested over a Bitcoin transaction dating back to November 2016. It seems the Department of Homeland Security is concerned about this specific transaction for unknown reasons.
Furthermore, the CEO has been charged with involvement in a money laundering instrument. Assuming he did not adhere to specific regulations or requirements, such a charge may stick in the long run. His LocalBitcoins transaction was well below the threshold at which users need to file for an official Money Service Transmitter license. As such, charging him with money laundering seems like a bit of a stretch, but it is possible there’s a lot more to this story than meets the eye.
Additionally, it seems the individual’s phone is still in the hands of the DHS as of right now. While that is not a big problem per se, the Bitcoin Inc CEO will need that device to access 2FA codes for cryptocurrency-related services. Holding on to such a personal item – especially an electronic device – raises a lot of questions, especially where this arrest is concerned. It is unclear why the DHS decided to arrest him specifically, and it almost appears as if someone reported this person for Bitcoin activity.
Source/More: Homeland Security Arrests Bitcoin Company CEO for Alleged Money Laundering – The Merkle