US Authorities Probe Bitcoin Exchanges Over Illegal Transactions: Report

Advertisement
By Reuters | Updated: 20 May 2014 13:53 IST
US Authorities Probe Bitcoin Exchanges Over Illegal Transactions: Report
Several Bitcoin exchanges including the now-defunct Mt. Gox received subpoenas from Manhattan federal prosecutors this winter as they look into possible ties between the exchanges and the online drug market Silk Road, the Wall Street Journal reported on Monday, citing people familiar with the matter.

The subpoenas to Mt. Gox demanded customer-transaction logs and materials related to solicitation of investors. The report did not mention any other Bitcoin businesses that received subpoenas.

Mt. Gox's lawyers advised Chief Executive Officer Mark Karpeles against going to the United States after he was summoned by a judge there to testify for a class-action lawsuit, because they were concerned he would be arrested in connection with this case.

(Also see: Mt. Gox CEO ordered to US for questions on failed Bitcoin exchange)

The prosecutors and Federal Bureau of Investigation agents are examining whether the exchange and others like it may have processed transactions connected to Silk Road, the people said.

Advertisement

The investigation was at an early stage and there were no conclusions yet on whether the exchanges were connected with Silk Road, one of the people familiar with the matter told the paper.

Last month, prominent Bitcoin entrepreneur Charlie Shrem was indicted by a federal grand jury in New York on charges of funneling cash to Silk Road.

Advertisement

Shrem, one of the digital currency's most visible promoters, is accused of conspiring with a Florida man, Robert Faiella, to sell more than $1 million in Bitcoin to the users of Silk Road despite knowing that it would be spent on illegal activities including drug trafficking.

It was preceded by the arrest of alleged Silk Road founder Ross Ulbricht in San Francisco last year when he was charged in federal court in Manhattan with counts relating to drug trafficking, money laundering and computer hacking, all stemming from his alleged involvement in the illicit online marketplace, which sold drugs and criminal services in exchange for Bitcoin. After Ulbricht's arrest, the government shut down the website.

Advertisement

© Thomson Reuters 2014

 

Also seeCryptocurrency Prices across Indian exchanges

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Advertisement

Related Stories

Popular Mobile Brands
  1. OnePlus Nord 5 and Nord CE 5 Colour Options, Key Features Leaked
  2. Nothing Phone 3 to Be Equipped With the Snapdragon 8s Gen 4 SoC
  3. Samsung Galaxy Watch 8 Series Design Revealed in New Leaked Renders
  4. Samsung Galaxy S25 Ultra Price in India Discounted for a Limited Time
  5. Samsung Galaxy M36 5G to Launch in India Soon; Design, Price Range Teased
  6. Trump Mobile T1 Phone With 5,000mAh Battery Announced; See Price, Features
  7. Poco F7 5G to Launch in India and Global Markets on This Date
  1. Nintendo Direct Livestream Featuring Donkey Kong Bananza Announced for June 18
  2. Amazfit Active 2 Square Debuts With 1.75-Inch AMOLED Display and Up to 10 Days Battery Life
  3. Samsung’s Exynos 2500 SoC Confirmed to Feature Satellite Connectivity Ahead of Galaxy Z Flip 7 Launch
  4. Nothing Phone 3 Confirmed to Come With Snapdragon 8s Gen 4 SoC Ahead of July 1 Launch
  5. Samsung Galaxy M36 5G India Launch Teased; Rear Design and Price Range Revealed
  6. Reddit Unveils Reddit Community Intelligence, Its Suite of AI-Powered Ad Tools for Enterprises
  7. Sony Bravia 8 II QD-OLED TV Series With Acoustic Surface+ Audio, Studio Calibrated Mode Launched in India
  8. Asus Unveils Refreshed Vivobook S16, S16 OLED Laptops in India Alongside Vivobook S14: Price, Features
  9. Apple Watch Ultra 3 Said to Launch This Year; Product Roadmap for Next Three Years Leaked
  10. Google Unveils India-Focused Safety Charter, Shares How It Is Using AI to Combat Online Frauds and Scams
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.