Charlie Shrem to plead guilty to unlicensed money transmission

One of the most prominent names in Bitcoin will plead guilty to multiple federal charges in a New York court next Thursday, September 4th. According to Reuters, Charlie Shrem, an entrepreneur who’s made millions off of Bitcoin, has made a plea deal with authorities regarding charges that he illicitly transacted Bitcoin with users of the underground marketplace Silk Road. Shrem’s lawyer tells Reuters that he will plead guilty to the charge of unlicensed money transmission, which carries a maximum prison sentence of five years.
He was also charged with one count of conspiracy to commit money laundering, and one count of willful failure to file a suspicious activity report with banking authorities. Combined, those charges carry an additional maximum sentence of 25 years in prison.
The plea deal does not guarantee his freedom, Shrem told CoinDesk, but he remained confident – no-one has yet served jail time for unlicensed money transmission alone.
Shrem said there were no restrictions on his becoming involved with bitcoin-related business once more, and he had immediate plans involving his consulting work with payments company Payza.
He also plans to travel to Denver in two weeks to attend fellow bitcoin entrepreneur Erik Voorhees’ wedding.
It was not immediately clear if Faiella, a Florida man who faced similar charges as Shrem, will plead guilty or move ahead with trial Sept. 22. He has previously pleaded not guilty.
But Faiella, 54, is expected to fly to New York for the hearing, according to a court order filed Friday.
A lawyer for Faiella did not respond to requests for comment. A spokesman for Manhattan U.S. Attorney Preet Bharara declined comment.

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