Charlie Shrem, a bitcoin entrepreneur facing federal money laundering charges, is no longer under 24-hour house arrest.

Shrem still has restrictions related to his legal situation that include a curfew and limits on his ability to travel, but the modification allows the 24-year-old to pursue work opportunities, provided he does not leave New York.

The changes to Shrem’s home confinement terms give him the ability to leave his residence between the hours of 9am and 9pm, Sunday through Thursday.

He is restricted to the geography of New York City, and must continue wearing a GPS monitoring device on his person. Shrem is also supposed to provide the authorities with verification of employment upon request.

Arrest and bail

Shrem was arrested on 27th February in New York’s LaGuardia Airport, and has been under house arrest since posting $1m bail.

He was indicted on 15th April along with alleged co-conspirator Robert Faiella, also known as ‘BTCKing’. The two are charged with two counts of operating an unlicensed money transmitting business, one count of money laundering conspiracy and one count of wilful failure to file a suspicious activity report.

As an executive of the now-defunct bitcoin processor BitInstant, the federal government claims that Shrem failed to alert authorities regarding suspected money laundering.

The charges, filed in the United States District Court Southern District of New York, allege Shrem was complicit in helping provide bitcoin for Silk Road users.

Similarly, lawyers representing alleged Silk Road mastermind Ross Ulbricht, who was also arrested in connection with the drugs marketplace, have asked his money laundering charges to be dismissed, due to the fact that bitcoin is not yet considered ‘money’.

Attorney Joshua Dratel argued that money laundering regulations cannot apply to bitcoin, as it not an instrument that can be used in a financial transaction in the eye of the law.

Business Shrem image via Zimbio