Now who didn't see that coming? (especially after Bitinstant)
The new focus of the investigation is the latest indication of how the shuttered online drug market has become linked to bitcoin, tainting the currency with associations of shady activity as its advocates stress to regulators its legitimacy. It comes after prosecutors in January criminally charged the owner of one bitcoin exchange over alleged ties to Silk Road.
EDIT: The WSJ suddenly started to require login, so i reposted the article here:
http://www.deepdotweb.com/2014/05/20/bitcoin-exchanges-subpoenaed-silk-road-related-transactions/
Man this kinda shit annoys me:
"Exchanging other currencies into bitcoin with the knowledge that the funds would be used for illegal transactions could violate money-laundering laws. Even without such direct knowledge, financial institutions are required under U.S. bank regulations to maintain robust internal controls to prevent money laundering by customers."
So shouldn't we punish banks when drug dealers use cash? Should known dealers be allowed to use cash? The same logic applies, but that will never happen because the banks are the government.