Silk road owner arrested/ bitcoin crash

(Reuters) - U.S. law enforcement authorities have shut down Silk Road, the web marketplace for illegal drugs like heroin and cocaine as well as criminal activities including murder for hire, and arrested its alleged owner, the Federal Bureau of Investigation said on Wednesday.
The FBI arrested Silk Road owner Ross William Ulbricht, 29, known as "Dread Pirate Roberts," in San Francisco on Tuesday, according to court filings.
Federal prosecutors in New York charged Ulbricht with one count each of narcotics trafficking conspiracy, computer hacking conspiracy and money laundering conspiracy, according to the filing.
"Silk Road has emerged as the most sophisticated and extensive criminal marketplace on the Internet today," FBI agent Christopher Tarbell said in the criminal complaint. According to Tarbell, the site was used by "several thousand drug dealers" to sell "hundreds of kilograms of illegal drugs."
The site, which had operated since early 2011, also offered tutorials on hacking ATM machines, contact lists for black market connections and counterfeiters, and guns and hit men for sale, according to the charges.
Authorities also seized $3.6 million worth of digital currency Bitcoin, which was used instead of cash or credit cards to complete transactions on Silk Road. The charges against Ulbricht said his website generated sales of more than 9.5 million Bitcoins, roughly equivalent to $1.2 billion.
The raid on Wednesday was not the first time the U.S. government has made arrests related to Silk Road. Earlier this year, authorities in South Carolina arrested Eric Daniel Hughes, who used Silk Road under the name Casey Jones, and charged him in state court with drug possession. The Drug Enforcement Agency seized units of the digital currency Bitcoin, which Hughes allegedly used to purchase drugs from the online market.
Bitcoins, which have been around since 2008, first came under scrutiny by law enforcement officials in mid-2011 after media reports surfaced linking the digital currency to Silk Road.



http://www.bitlisten.com/ I just saw a $210,000 transaction go by. Bitcoin prices are going down and people are selling their own now that the silkroad is gone.

I wonder how Finn is doing in Bitcoin town

hmm. interesting stuff. I knew it was only a matter of time before it got shut down.

also, I cant believe theres actually people that think those hitmen on silkroad are legit... my god theres some dumb fucks out there!!!!!!!

also if 1800 bit coins is 210,000$ then how come I seen a 4300 bit coin transaction go by?

Gone, gone, gone...how stupid are these people and there followers. Silk Road was blatant and Bitcoin is a joke.

looks like its going to be an interesting day huh?

vacpurge said:

hmm. interesting stuff. I knew it was only a matter of time before it got shut down.

also, I cant believe theres actually people that think those hitmen on silkroad are legit... my god theres some dumb fucks out there!!!!!!!

also if 1800 bit coins is 210,000$ then how come I seen a 4300 bit coin transaction go by?

Click to expand...

4,374 bitcoins is equivalent to $507,400!! Jesus christ!

Ringsixty said:

Gone, gone, gone...how stupid are these people and there followers. Silk Road was blatant and Bitcoin is a joke.

Click to expand...

smacks of organized religion! lmao, good now you can go back to the old school methods kids!

Wow, I just found the perfect sleep music.

I hope finshaggy sees this and hangs himself.

bit coin seems to still be worth something:

https://www.mtgox.com

125$ a coin.

Using Tor was a joke, i am very surprised it lasted as-long as it did

the average 14yr old scriptkiddie can send data across a larger stream of anonymous compromised computers (botnet) than Tor
with equal encryption

Tor has had compromised exit nodes for a long time since its conception no doubt
they possibly only let it run for so long as it was a HONEYPOT

Whoa, nelly!

I never knew this existed.. I feel so left out

Ya. me too.

I went there to check it out.... High prices!

And, there she blows...

might not be a bad investment once there worth next to nothing they were cheap as fuck way back now their just insane but it drops and some dude in Columbia opens silk road #2 where the whole world could trade bitcoins and the US can't touch them the price will go back up. I won't buy for less then a $1 though then the price goes up again I'll have a shitload of drugs for cheap as hell maybe even a few boxes of grenades. lol

I'm with blunt

skunkd0c said:

Using Tor was a joke, i am very surprised it lasted as-long as it did

the average 14yr old scriptkiddie can send data across a larger stream of anonymous compromised computers (botnet) than Tor
with equal encryption

Tor has had compromised exit nodes for a long time since its conception no doubt
they possibly only let it run for so long as it was a HONEYPOT

Click to expand...

it makes me laugh when people babble on about how unsecure tor is and how silk road was able to be compromised from the start. if this were the case we would be reading news reports on all the high-level silk road dealers being busted.

..instead, we have news reports of only dpr being arrested and the vendors making a new site, lOl. obviously it wasn't a honeypot and obviously the government was incapable of hacking sr. y'all seem to forget sr's demise wasn't even due to the site being compromised..

I didn't know about it tell to late! Missed out money

and the title makes me lol as well.. i know it's old news, but saying that bitcoins only at $125 and calling that some sort of crash is simply laughable..
the bitcoin went up and down with the tide, going as high as over $200 per, and as lil as $12 only a year or so ago, not to mention it's humble beginnings.. the bit coin is here to stay, taking the down the sr and it's still being fairly high is surly proof of that imo..

Yeah I remember reading that at the very dawn of the creation of bitcoins, they where only worth around 7 cents per coin (may be mistaken in this). Makes you think though if you caught it at the very beginning and invested a measly 70 bucks, sat on it for a awhile and caught the market at its peak then that 70 bucks would be worth 200k. Of course that's best case scenario, and impossible to predict. Still makes you think "what if?", lol.