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Bitcoin exec handed two-year prison sentence

Charlie Shrem, former Bitcoin Foundation board member and CEO of the now dead exchange BitInstant, has been sentenced to two years in prison for helping Silk Road users exchange real money for the digital currency, Engadget reports.

Silk Road was an online marketplace for illegal narcotics and weapons, that the FBI found and shut down in 2013, for the site only to return in 2014 as a 2.0 version.

This one was also recently busted.

The evidence gathered during the investigation suggests Shrem partnered with Robert M. Faiella to take $1 million (£640,000) in cash from the buyers, and exchange it for the digital currency.

After getting caught, Shrem pleaded guilty and asked for the judge not to lock him up.

He blamed the illegal activities on his youth and the burning desire to promote BitCoin as a currency.

“I screwed up. The Bitcoin community, they're scared and there is no money laundering going on any more. They're terrified. Bitcoin is my baby, it's my whole world and my whole life, it's what I was put on this earth to do.

"I need to be out there. If your honor grants me that, I can be out there in the world, making sure that people don't do the same stupid things that I did”, Shrem told the judge in September.

After the sentencing, Shrem took to Twitter, saying justice has been served: “I've been sentenced to 2 years, to self surrender in 90 days. Considering I was facing 30 years, justice has been served. #Bitcoin”, wrote Shrem in a post.