Chairman Carper's Statement on Arrest of Bitinstant Founder and CEO

WASHINGTON- Today, Senator Tom Carper (D-Del.), Chairman of the Homeland Security and Governmental Affairs Committee, released the following statement after the announcement that the founder and CEO of Bitinstant, a major Bitcoin exchange, had been charged by federal prosecutors for attempting to launder more than $1 million in digital currency:

“We’ve seen all too clearly that digital currencies can be an effective tool for individuals seeking to engage in illicit activities and this recent arrest underscores that vulnerability. As we learned from our hearing late last year, law enforcement, including the FBI, Drug Enforcement Agency, and others are focused on ensuring that those who want to use digital currencies for harm are stopped.  I commend their tireless work to protect our citizens and the rule of law.  That being said, there are many who believe that digital currencies are an important and valuable new technology, and who want the opportunity to play by the rules in bringing potentially valuable products to the marketplace.  That’s why it’s critical that the federal government, including Congress, takes notice and learns more about the potential promises and risks of this emerging technology and develop thoughtful and sensible policies that protect the public without stifling innovation and economic growth.”