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Some Money Launderers are More Equal than Others Part 2 – CEO of BitInstant is Arrested

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No man escapes when freedom fails, the best men rot in filthy jails. And those who cried, “appease appease” are hung by those they tried to please.

– Anon

Last May, I wrote an article titled: Some Money Launderers are “More Equal” than Others, which likened the U.S. government to the pigs that ruled the roost in George Orwell’s classic novel Animal Farm. In that article, I decided to compare the way the “authorities” used money laundering laws against Liberty Reserve, versus the way they tip-toed around massive money laundering for Mexican drug cartels that HSBC engaged in. Since I wrote that article, JP Morgan has been fined tens of billions of dollars for a cornucopia of criminal activities. Meanwhile, we have yet to see a single executive arrested or put behind bars. Why?

I think it is quite obvious. The United States’ “economy” has devolved into nothing more than a state-sanctioned criminal racket. A handful of oligarchs and the corporations they control, are immune from prosecution no matter what they do. They have a complete and total license to steal with impunity. Meanwhile, if a peasant is caught stealing 10 dollars or found with a dime bag of weed, it is jail for life. ‘Merica.

So now I turn your attention to the breaking news that Charlie Shrem, the impressive, young and very talented kid behind Bitcoin exchange BitInstant, has been arrested. I had a chance to meet Charlie in person last summer at the Inside Bitcoins conference in NYC (I will be once again attend their next conference April 7-8). In my wrap-up article on the conference I wrote:

The event kicked off with keynote speaker Charlie Shrem, founder and CEO of BitInstant. For those who aren’t familiar with it, BitInstant is one of the more convenient ways to acquire bitcoins for cash. Incredibly, he is a mere 23-years old and started the company while still enrolled at Brooklyn College. He shared his experience of pitching venture capital firm after venture capital firm, and his subsequent rejection by each and every one of them. He eventually convinced his mother to seed him the $10,000 needed to start the company.

Shortly after the speech, I was able to chat with Charlie in the hallway and he couldn’t have been nicer. He immediately pointed to my “Bought with Bitcoin” shirt and told me he wanted one. The shirt’s in the mail man.

In light of the above, it makes sense that the U.S. government wants him in jail. It has become quite clear that the “authorities” are intent on either putting all our greatest minds in jail, such as Barrett Brown, or driving them to suicide, as was the case with Aaron Swartz, or forcing them into exile, as is the case with whistleblower-hero Edward Snowden. Meanwhile, it is open season for oligarchs to hunt peasants. USA! USA!

From Time:

Charles Shrem, who ran a New York-based Bitcoin exchange, was arrested Monday and charged with engaging in a money laundering scheme with a user of Silk Road, the notorious deep web black market.

In the federal criminal complaint, the Southern District of New York charges Shrem, the 24-year-old CEO of BitInstant, with three counts, including one count operating an unlicensed money transmitting business, one count of money laundering conspiracy and one count willful failure to file suspicious activity report.  Robert Faiella, a Silk Road user who operated under the name “BTCKing,” was charged with one count of operating an unlicensed money transmitting business and one count money laundering conspiracy.

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Some Money Launderers are “More Equal” than Others

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“All animals are equal, but some animals are more equal than others.”
– George Orwell’s Animal Farm

It’s been many, many years since I read George Orwell’s Animal Farm, but the message conveyed in it will remain with me forever.  The book is many things, but more than anything else, it is a portrayal and critique of human nature and the political systems that we create. For those that need a refresher, or have not read the book, here’s the basic plot.

There’s a farm headed by a Mr. Jones, who drinks so much he becomes unable to take care of the farm and feed the animals.  Over time, the animals (in particular the pigs), decide human beings are parasites and the pigs lead a revolt and run Mr. Jones off the property.  They change the farm’s name from Manor Farm to Animal Farm and create a list of 7 commandments.  They are:

  1. Whatever goes upon two legs is an enemy.
  2. Whatever goes upon four legs, or has wings, is a friend.
  3. No animal shall wear clothes.
  4. No animal shall sleep in a bed.
  5. No animal shall drink alcohol.
  6. No animal shall kill any other animal.
  7. All animals are equal.

Rather quickly, the pigs assume leadership over the farm and one pig in particular, Napoleon, consolidates power after running his primary competitor off the property.  It goes downhill from here fast.  The pigs start to walk on two legs, drink alcohol and sleep in beds, amongst other things. Understanding that their new lifestyle in in direct contrast with their original seven commandments, they simply decide to make some adjustments.  The adjustments are:

  1. No animal shall sleep in a bed with sheets.
  2. No animal shall drink alcohol to excess.
  3. No animal shall kill any other animal without cause.

Rather quickly, even these adjustments becoming too binding for the glutinous and power hungry pig oligarch class.  They decide to just condense everything down to one commandment:  All animals are equal, but some animals are more equal than others.

The above process is one for the ages, a process that has been reenacted time and time again by our species over the millennia.  It is exactly what is happening in these United States right now.

The reason I spend so much time on the Constitution and civil liberties these days is because I can see the above unfolding right before my eyes.  I also see an opportunity to stop it before it reaches its final, most destructive stage.  Whether it’s the Department of Justice turning journalism into a criminal act, the IRS going after political enemies, or our Noble Peace Prize winning President droning thousands of innocent men, women and children all over the world with flying robots, the oligarch class in this country is dismantling the Bill of Rights one amendment at a time.

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