US prosecutors have announced charges against two men operating Bitcoin exchange businesses for trying to sell $1m in the digital currency to users of the underground website Silk Road, shut down by authorities in September.

The US Attorney's office in New York said in a statement that authorities arrested Charlie Shrem, chief executive officer of the exchange BitInstant.com, on Sunday and Robert Faiella, who ran an underground Bitcoin exchange called BTCKing, on Monday.

The two were charged with conspiring to commit money laundering and operating an unlicensed money transmitting
business.

Shrem is also vice president of the main Bitcoin-focused trade group, the Bitcoin Foundation, according to the foundation's website and Shrem's LinkedIn profile.

 

Source: Al Jazeera and agencies