Bitcoin / In the Headlines

Bitcoin is once again making front page news. But this time for being used in Money Laundering.

The CEO Charlie Shrem of BitInstanst bitcoin exchange and underground bitcoin exchanger Robert Faielle have been charged with Money Laundering, according to NPR. It is a rare chance for the field of anti money laundering to make headlines, yet it is not a surprise. After months of controversy surrounding the new, and untraceable currency called Bitcoin, perhaps this calls into question, the legality of such a monetary option.

According to NPR’s Jacob Goldstein and David Kestenbaum:

“Bitcoin is a lot like cash — for the online universe. It doesn’t actually exist in the physical world. You can’t hold bitcoins in your hand; they exist only on computers. There is no center to the whole bitcoin system. It’s not like there’s one computer somewhere storing all the information. It’s a peer-to-peer system, run by the people who use it.”

For more information on Bitcoin and crime, listen to this radio broadcast from NPR & look for us at MFC to post an article this Friday about how bitcoin works. A conference this weekend will further discuss the role of bitcoin in the world of virtual currencies and we look forward to discussing its results.