Reuters reports, following the arrest, for money laundering, of the vice-chairman of the Bitcoin Foundation, Charlie Shrem:
Bitcoin insiders said Shrem's arrest showed just how hard it is to get away with illegal activity using Bitcoin, which has an ownership chain built into its software so that each unit can be tied to the users who have acquired or spent it.
"Using bitcoin for illicit transactions is really, really dumb," said Patrick Murck, the Bitcoin Foundation's general counsel. "Bitcoins are so easy to track."The Bitcoin Foundation as an organization, also piled on:
“We are surprised and shocked by the news today. As a foundation, we take these allegations seriously and do not condone illegal activity,” said a spokesperson for the Bitcoin Foundation in an email.The Winklevoss twins threw Shrem under the bus earlier today.
Okay Bitcoiners, so we know that the government is going to control bitcoins at the point of exchange, which means that bitcoiners are going to have to play by the government's rules and the general counsel of the Bitcoin Foundation has now stated that "Bitcoins are so easy to track," so what exactly is the benefit of Bitcoin?
Just a friendly reminder: don't launder money that uses a fully transparent unforgeable ledger. Use Federal Reserve Notes instead. #Bitcoin
— Michael Goldstein (@Bitstein) January 27, 2014