New York - A US judge says the top executive of a New York City-based Bitcoin company can be freed pending trial on charges relating to the black market website Silk Road.

Magistrate Judge Henry Pitman ordered electronic monitoring for 24-year-old Charlie Shrem.

He was released to stay with his parents Monday over the objection of prosecutors.

Shrem is chief executive officer of BitInstant and vice chairman of a foundation that promotes the Bitcoin currency system.

He was arrested Sunday at Kennedy Airport.

Prosecutors say he conspired to commit money laundering by selling more than $1 million in Bitcoins to Silk Road lawyers.

They say he personally bought drugs on the website.

His lawyer says he is presumed innocent and has spoken online about the need to obey the laws regarding virtual currency. - Sapa-AP