A day later, in a move completely unrelated to the dagger, Shrem
indicted by a New York grand jury on money laundering
charges. The case made Shrem famous because he had allegedly
been selling Bitcoin to Silk Road users. The
New York U.S. Attorney's office believes Shrem knew many of
the buyers were also trading drugs on Silk Road. Prosecutors say
this knowledge makes him guilty of money laundering.
While promoting the alternative online currency he gained the nickname "the Bitcoin Millionaire." He posts in Bitcoin forums under the screenname "Yankee."
Shrem has pleaded not guilty and has argued that in fact he was several steps removed from the drug dealers.
The original owner described how he came to own the knife:
Charlie Shrem Wikimedia
Charlie Shrem, the 24-year-old former CEO of BitInstant who was charged in January with money-laundering criminals' Bitcoins on the Silk Road web site, went shopping for a Nazi dagger online last week, according to The Daily Dot. He reportedly found one he liked, which was being offered for 1 Bitcoin (around $400).
In the end he decided not to buy it, he told a Bitcoin forum: "shipping was too expensive from Sweden," and the seller returned his money (also in the form of Bitcoin).
The dagger is a Nazi-era Kriegsmarine Naval officer's "Eickhorn Solingen," according to a link to the website German War Booty published by the knife's seller:
The logo is stamped into the blade as is correct. There are two dings in the scabbard...probably from the dagger getting caught in the door while being worn. This piece is an indirect vet buy. The dagger could use a good polishing as the gilt is well worn and only remains in the recessed areas for the most part. The blade has some graying but is bright overall. The grip is in great shape with the wire intact and no damage to the white part of the grip. A decent Kriegsmarine Dagger at an affordable price with a good look.
Here's the knife in question, from the image sharing site Imgur:
I don't know the full story, but he fought alongside Norwegian rebels who were originally fishermen. I don't know whether the knife was used to kill somebody prior to that.
We previously noted that Shrem, who is under house arrest and cannot leave his parents' home without permission, has been watching a lot of Netflix and drinking since he resigned from both BitInstant and the Bitcoin Foundation. He has denied the charges against him.
My grandpa killed the nazi, looted his stuff. As you do...
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