Canadian brothers Firoz and Ferhan Patel are headed to prison after admitting their payments company had broken the law.
The founders of Payza, which allows customers to trade in cryptocurrencies, have been charged with running an unlicensed money transmitting business.
Global online payment processor Payza has said its bitcoin transactions have been rising steadily by about 20% per month.
Payza has launched its first bitcoin service, allowing customers to buy bitcoin in 190 countries.
The bitcoin entrepreneur will discuss his past experiences at the conference in New York later this month.
The former BitInstant CEO can now leave his residence between 9am-9pm Sunday through Thursday for employment purposes.