CEO of the Now-Defunct BitInstant has Been Released from Prison

Charlie ShremAccording to Bitcoin news report, Charlie Shrem, founder of the now-defunct BitInstant, has been released from jail after he spent nearly one and a half years in the high-security Lewisburg Federal Prison Camp since March 2015.

After his conviction, he was sentenced to 24 months in prison.

In the first blog posted by Shrem following his release, he reportedly said that he was released sometime in June and, for the time being, he is living with his girlfriend in Southern Pennsylvania, the Bitcoin news noted.

Though he expected he would spend less than one year in jail, Shrem was able to escape the potential of spending 24 months and even the 20 to 30 years he was faced with initially.

According to Bitcoin news, when Shrem was arrested in January 2014 at the JFK airport, he was not only the CEO of BitInstant, but also an original member of the Bitcoin foundation.

In addition, Shrem was seriously involved with the Bitcoin community and the protection and promotion of the digital currency.

At the time of his arrest, it was alleged that he knowingly allowed a user of the darknet marketplace Silk Road trade Bitcoins for dollars through BitInstant, his exchange service.

Charges leveled against Shrem were money laundering, operating a money-transmitting business without a license and not reporting suspicious banking activity.

Actually, all he did was allow BTCKing, a member of Silk Road, to exchange Bitcoins for dollars.

Under the Patriot Act, a person charged with money laundering could be faced with a minimum of 30 years in jail.

Bitcoin newsAccording to Bitcoin news, Shrem pleaded guilty to the charges leveled against him and also forfeited as much as $950,000 as ordered by a US district judge in Manhattan.

However, the money laundering charge against him was dropped and he was given a less harsh sentence.

Some people believe that Shrem was charged with money laundering because his case had a close association with the Silk Road investigation.

In April 2014, Shrem was formally indicted after his plea bargain was rejected.

According to Bitcoin news, in December 2014, he was sentenced to two years in prison.

For fourteen months, after his arrest, Shrem was kept under house arrest.

Charlie Shrem was transferred to Lewisburg Federal Prison Camp on 30th March 2015.

As per Bitcoin news, Shrem wrote in his blog post that he was released from Lewisburg Federal Prison Camp a few weeks back. In the blog, he also thanked all those who wrote as well as sent books, magazines and money, and extended their support.

In addition, he mentioned he is currently living in Southern Pennsylvania with his girlfriend Courtney and his plan is to spend the summer enjoying the outdoors, eating good food, spending time with family and friends and doing many of the small things that he missed when he was in jail, according to Bitcoin news.

Requesting all those who wanted to say hello to reach out to him, Shrem noted that he was still under the communication requirements established as part of his incarceration and that he cannot agree for media interviews at this point in time.

He has to undergo 2 to 4 years of government supervision before he becomes completely free.

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Author: Geoffrey

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