Charlie Shrem Arrested: Bitcoin Foundation Responds to Allegations

January 28, 2014 By: David Mindich

The Bitcoin Foundation just released a statement in regards to allegations against Charlie Shrem.

Shrem, who was vice chairman of the Bitcoin Foundation, has resigned as of today in the wake of allegations that involved him in operating an unlicensed money transmitting business, conspiring to commit money laundering, and willful failure to file a suspicious activity report.

In response to these allegations, the Bitcoin Foundation has stated, “We are both surprised and saddened to learn of these allegations. The foundation does not condone illegal activities and values transparency, accountability and a high level of responsibility towards its members and overall community.”

In response to Shrem’s resignation, Bitcoin Foundation’s Executive Director, Jon Matonis, has said, “As a foundation, we need to remain focused on our core mission to standardize, protect, and promote the Bitcoin core protocol. While Charlie has contributed a great deal of personal effort and resources to enhance the adoption of Bitcoin worldwide, a prolonged legal dispute would inevitably detract from advancing that core mission. Therefore, in order to focus on his pending trial, it has been mutually decided that Charlie Shrem resign from the Board of Directors, effective immediately. The Board accepted that resignation today.”

The Bitcoin Foundation also noted that these allegations, according to the Manhattan U.S. Attorney’s office are, “[…]merely accusations, and the defendants are presumed innocent unless and until proven guilty.”

They also point out that “the indictment itself is not against Bitcoin or the community at large.”

The news comes at an interesting time for bitcoin, as the New York State Department of Financial Services is currently holding a hearing over how to regulate virtual currencies.

To read The Bitcoin Foundation’s full statement, see their blog.