In 2014 he was sentenced to two years in prison for aiding and abetting the operation of an unlicensed money-transmitting business related to the Silk Road marketplace.

[4][6][5] While in high school, Shrem started Epiphany Design and Production, a company that fixed printers and computers.

Shrem and Gwen Nelson, a friend he met online, had similar frustrations with the length of time it took to buy and sell bitcoin on exchange sites.

[1][8] Initially a side project, BitInstant soon needed to grow, at which point Shrem received a $10,000 loan from his mother.

[19] The startup's fund, Mainstreet Investment LP, planned to offer cryptocurrency tokens issued on the ethereum blockchain representing shares in a portfolio of companies involved in manufacturing, real estate and sanitary waste.

[21] The multi-platform blockchain cryptocurrency wallet developed by Decentral enables users to control their digital assets.

[23][non-primary source needed] On January 26, 2014, on returning from an e-commerce convention, Shrem was arrested at JFK Airport.

[8] Prosecutors alleged that Shrem and Robert Faiella conspired to launder $1 million worth of bitcoins to help users of the Silk Road marketplace anonymously make illegal purchases.

Shrem was also charged with failing to report suspicious banking activity and operating an unlicensed money-transmitting business.

[24][25][26] He was released on $1 million bail on January 28, 2014, on the condition that he submit to electronic monitoring and live with his parents in their Marine Park, Brooklyn home.