US makes Bitcoin exchange arrests after Silk Road closure

Jan 28, 2014, 02:17 AM

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The operators of two exchanges for the virtual currency Bitcoin have been arrested in the US.

The Department of Justice said Robert Faiella, known as BTCKing, and Charlie Shrem from BitInstant.com have both been charged with money laundering.

The authorities said the pair were engaged in a scheme to sell more than $1m (£603,000) in bitcoins to users of online drug marketplace the Silk Road.

So does this indicate that the authorities are going to take a tougher stance against Bitcoin in general?

The BBC's Samira Hussain in New York explains.