BREAKING: CEO of Winklevoss-backed bitcoin company arrested

Here's more from Market Watch on the Bitcoin players just arrested:

The Justice Department said Monday it arrested Charlie Shrem, chief executive officer of the bitcoin company BitInstant, and has charged him with conspiring to commit money laundering and operating an unlicensed money-transmitting business. The DOJ alleges that Shrem, along with "underground Bitcoin exchanger" Robert Faiella, were involved in a scheme to sell more than $1 million in bitcoin to users of the bitcoin-only drug marketplace Silk Road. Faiella was also arrested and faces charges of conspiring to commit money laundering and operating an unlicensed money-transmitting business. Shrem was additionally charged with violating the Bank Secrecy Act, as he allegedly failed to report suspicious activity regarding Faiella's illegal transactions through the company. New York-based BitInstant in May raised $1.5 million in a seed round led by Cameron and Tyler Winklevoss. "As alleged, Robert Faiella and Charlie Shrem schemed to sell over $1 million in Bitcoins to criminals bent on trafficking narcotics on the dark web drug site, Silk Road," said U.S. attorney Preet Bharara in a statement. "Truly innovative business models don't need to resort to old-fashioned law-breaking, and when Bitcoins, like any traditional currency, are laundered and used to fuel criminal activity, law enforcement has no choice but to act."