Following the news on Monday that BitInstant CEO Charlie Shrem was arrested in New York on suspicion of selling over $1 million worth of bitcoin to users of the now-defunct Silk Road online drug marketplace, and today’s news Shrem has been released on bail, the Bitcoin Foundation has released a statement on the allegations against the 24-year-old.
“We are both surprised and saddened to learn of these allegations. The foundation does not condone illegal activities and values transparency, accountability and a high level of responsibility towards its members and overall community,” the foundation says in a statement.
Shrem has tendered his resignation as the Vice Chairman at the Bitcoin Foundation in order to focus on the road ahead.
“As a foundation, we need to remain focused on our core mission to standardize, protect, and promote the Bitcoin core protocol. While Charlie has contributed a great deal of personal effort and resources to enhance the adoption of Bitcoin worldwide, a prolonged legal dispute would inevitably detract from advancing that core mission,” said Executive Director and Board Member at the Foundation Jon Matonis. “Therefore, in order to focus on his pending trial, it has been mutually decided that Charlie Shrem resign from the Board of Directors, effective immediately. The Board accepted that resignation today.”
It is unclear who will be replacing Shrem.
Read the statement in full here.