Who Is Charlie Shrem in the Bitcoin scenario?

Getting To Know The Earliest Pioneers In Bitcoin Cryptocurrency

Making an incredible amount of money are investors taking an early interest in Bitcoin as they held on to their stakes in the cryptocurrency as prices skyrocketed. Inspiring countless new investors, while searching for the next big investment in the space are the stories of Bitcoin millionaires happening to hold on to an early stockpile of tokens acquired before the cryptocurrency phenomenon.

Charlie Shrem is a polarizing figure, from amongst the prominent millionaires making the fortunes of cryptocurrency. Shrem was also in prison for two years being a staunch supporter of Bitcoin and cryptocurrency space for activity related to unlicensed money transmitting business. 

Background in Bitcoin

Born in 1989, Shrem was a college senior in 2011 when the Bitcoin emerged. During that time, he started investing in the cryptocurrency and eventually lost his stake as the storage service crashed.

Following this as a response to this incident, he partnered with a friend and fellow cryptocurrency enthusiast by the name Gareth Nelson launching Bit Instant designed as a user-friendly service helping people convert dollars into Bitcoin.

Becoming a massive success, Bit Instant at one point accounted for roughly 30% o all Bitcoin transactions. It garnered significant attention from investors, while in the process including Winklevoss Capital Management as it was operational from September 2011 through July 2013.

Shrem describes himself as a Bitcoin purist amid the BitInstant craze, supporting the digital currency that backed the technology as they perceive its increased security as well as autonomy over those traditional banking institutions.

Finally, Shrem became the vice chairman of the Bitcoin foundation during the rise of BitInstant as it soared to popularity and Shrem saw his wealth increase significantly. 

Silk Road Involvement and Arrest

Sentenced to two years in prison for the indirect involvement with the transmission of $1 million in Bitcoin to the silk road black marketplace drawing widespread attention in 2014.

It happened to be that in 2012, Shrem was assisting Robert Faiella as they trade for more than $1 million in cash or Bitcoin holdings transferred via trade to silk road customers. This when Faiella pleaded guilty of operating an unlicensed money transmitting business in late 2014 and was later sentenced to 4 years in prison.

The US District Judge Jed Rakoff in Manhattan eventually in the process of Shrem’s sentencing ordered Shrem to forfeit nearly $1 million. As he officially pleaded guilty in September 2014, to aiding and abetting an unlicensed money transmitting business.

Describing Shrem as an individual excitedly participating in the crime, Judge Rakoff implied that he could have been sentenced to up to five years in prison as ultimately he remained under curfew as well as probation through March 2015. Later he was imprisoned from late march 2015 through June 2016.

Shrem resigned from his position with the Bitcoin Foundation as BitInstant closed down in 2013 after he was charged in early 2014. Shrem reportedly worked as a dishwasher following the release from jail having lost nearly all of the money he earned from operating BitInstant as legal fees and penalties. 

Post-Prison Return to Bitcoin

Shrem has remained a vocal advocate of Bitcoin and cryptocurrencies in general since his release from prison in mid-2016. In the meantime, he even announced his plans to continue investing in the cryptocurrency space to diversify the holdings and transfer Bitcoin profits toward real estate investments. With a return to the industry, he came up with several new projects and ventures.

For example, in 2016, as Shrem announced his intention to launch Intellisys Capital here Shrem would serve as chief technology officer with the fund intended to offer cryptocurrency token standing in for shares of a portfolio of manufacturing and related companies. Finally, the fund was dissolved in March 2017.

Later in May 2017, he joined the cryptocurrency wallet company Jaxx, as the director of business and community development. Later on, he has linked with Vibrate a blockchain-based startup aimed to disrupt the way musicians without agency representation managed earnings and concert bookings according to CoinDesk. Finally, in January 2018 Shrem was joining the advisory team for Particl, the open-source eCommerce platform. 

The Bottom-Line

While maintaining an active online presence, Charlie Shrem has his story detailed in books about the cryptocurrency world wherein he is often described as the first felon in the space. Shifting from this earliest effort leading BitInstant, Shrem’s activity in the cryptocurrency industry remains a staunch and vocal supporter of Bitcoin. Commonly recruited as a speaker on subjects related to cryptocurrency, he remains to be the king of all time continuing to serve several digital currency-related companies and organizations in an advisory capacity.