Bitcoin leader’s surprise arrest shows the digital currency has yet to shake its criminal ties

Charlie Shrem, the vice chair of the Bitcoin Foundation and CEO of BitInstant, once an exchange for the popular digital currency, was arrested at New York’s JFK Airport last night for violating money transmission rules.

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At first, the news was a surprise: Many payments start-ups, including bitcoin companies, run afoul of money transmission laws, and typically face legal expenses, business challenges and bad press—but not arrest.

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Then the US Department of Justice issued a press release announcing charges