This morning, Charlie Shrem, CEO of BitInstant, was arrested on money laundering charges. As someone who knew Charlie and who used to run a Bitcoin company, I am interested in the case, and will over the coming days post a number of documents related to BitInstant and the Bitcoin business.
First up: the class action lawsuit filed against BitInstant by angry customers in July of 2013. By their own admission, BitInstant received 17,300 customer complaints in their last month of operation, with many saying they never received the Bitcoins they paid for. Below are copies of the original complaint, BitInstant’s motion for dismissal, and the plaintiffs’ response.