Two men who operate bitcoin exchange businesses, including an official in the leading industry bitcoin trade group, have been charged with money laundering for helping drug merchants exchange $1 million in cash for the digital currency, U.S. prosecutors said on Monday. The case, and related comments made by a top federal prosecutor, make clear that the Justice Department plans to ensure bitcoin exchanges meet their obligations to police transactions for money laundering activity, experts said. Federal prosecutors in New York announced charges against Charlie Shrem and Robert Faiella, both operators of bitcoin exchange businesses, for attempting to sell $1 million in the digital currency to users of the underground black market website Silk Road, which was shut down by authorities in September. According to the charging document, Shrem, 24, chief executive officer of the exchange BitInstant.com, changed cash into bitcoins for Faiella, 52, who ran an underground bitcoin exchange through
↧