Feds Bust Criminal Internet Site

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BGIF

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Feds shut down $1.2 billion criminal internet marketplace | Fox News

Federal authorities have shut down what they called the “most sophisticated and extensive criminal marketplace on the Internet today,” an underground operation responsible for distributing illegal drugs and other black market goods and services.

The site’s alleged owner, Ross William Ulbricht, was arrested and $3.6 million in anonymous digital currency known as Bitcoins was seized. The site, which did about $1.2 billion in sales, was taken over by federal authorities, according to court documents unsealed Wednesday in the Southern District of New York.

Ulbricht was alleged to operate a website responsible for distributing hundreds of kilograms of illegal drugs and other illicit goods and services, including fake IDs and computer hacking-related services. He was indicted on charges of drug conspiracy, computer intrusion offensives conspiracy, and money laundering conspiracy.

Ulbricht, 29, used the aliases "Dread Pirate Roberts," "DPR," and "Silk Road" while operating the site, authorities said.

He appeared in federal court in San Francisco on Wednesday and was scheduled to reappear Friday for a detention hearing.

The government seized approximately 26,000 Bitcoins in the largest ever seizure of the online currency designed to be as anonymous as cash.

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Bitcoins ... Bitcoins ... "currency designed to be as anonymous as cash" ... vbucks ... vbucks ... hmmm


"Dread Pirate Roberts" wasn't that Phammer's handle or was it his money man, McGibblets?


Not to fear guys, the NSA isn't listening, they're all on furlough, aren't they?


(sent from my burner phone)
 
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Buster Bluth

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Why wouldn't he set up shop outside the US? Like...Venezuela.
 
BobD

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Where is the list of illicit items we can buy with vbucks?

Maybe we could change the items on the gifts list?

Bob D has given BGIF the gift of a kilo of pot and a pound of meth.
 
B

BGIF

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BobD said:
Where is the list of illicit items we can buy with vbucks?

Maybe we could change the items on the gifts list?

Bob D has given BGIF the gift of a kilo of pot and a pound of meth.
Click to expand...


Meth?

Miley's a Molly fan.
 
BobD

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Bob D has given BGIF the gift of a bag of Molly's.

molly.jpg



(I had to look then up. I had no clue what a Molly was.)
 
jimmymac

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My friend bought stuff from this site, absolutely crazy set up.
 
Rack Em

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When I opened this thread, I was really hoping the Feds took down NDNation for secret criminal activity.

No italics.
 
jimmymac

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BobD said:
What did your "friend" buy? :)
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I wanna say extacy... But bit coins are crazy... I think if you had bought like 10 bitcoins when they were first created they'd be worth like $10,000 today... Weird business models all the way around. Bitcoins are non traceable apparently, which is why it's been causing investigators fits.
 
BobD

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jimmymac said:
I wanna say extacy... But bit coins are crazy... I think if you had bought like 10 bitcoins when they were first created they'd be worth like $10,000 today... Weird business models all the way around. Bitcoins are non traceable apparently, which is why it's been causing investigators fits.
Click to expand...

Do other sites use them? I've never heard of them.

I guess I could Google it.
 
Irish Houstonian

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Bitcoins are just a 'cybercurrency'. They're just like the dollars in your online bank account, except it doesn't take any bank, processor, account, or paypal, etc. to send them electronically to another user. You can send them like email, potentially making purchases and transfers much easier.

If merchants start accepting them online, it will be bigger than Facebook. If not, then it will be a bigger bust than MySpace.
 
Irishcop

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I had to deal with a kid the other day that was out of his mind high, running around naked, screaming for the police to kill him. After we got him to the hospital and he came down, he told use that he used the "Silk Road" to purchase his drugs.
 
phork

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You can make your own Bitcoins but it takes damn near forever. There is a finite number of bitcoins that can be made. As that number approaches zero the value of a bitcoin goes up. The current price of a bitcoin is $128US. (source: https://www.mtgox.com/ )

The sole purpose is to have a currency that is untraceable and not under government interference.
 
BeauBenken

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Literally had a friend tell me something about a website called the "Silk Road" where you could buy drugs online a couple days ago. Wow...
 
GowerND11

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It is, well was, pretty much impossible to get to the website normally. I think you needed special programs and go through other domains to access the Silk Road. It was in what is known as the Deep Internet. It's pretty interesting when you think about it.
 
Sherm Sticky

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GowND11 said:
It is, well was, pretty much impossible to get to the website normally. I think you needed special programs and go through other domains to access the Silk Road. It was in what is known as the Deep Internet. It's pretty interesting when you think about it.
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You needed a torrent browser to access the site and also a proxy ip address server to be safe.

Now we all have to go back to the old fashion way of getting stepped on stuff ;)
 
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BBC News - Bitcoin value drops after FBI shuts Silk Road drugs site

Price drop
News of the closure was followed by a rapid drop in the price of bitcoins, according to figures from the Mt. Gox bitcoin exchange.

The going rate for the virtual currency dropped from more than $140 (£86) to around $110, before climbing back up to $123 (£75).

Investors may have been concerned about the FBI's ability to confiscate bitcoins, said Mr Ferguson.

"Knowing that a currency could be seized or shut down could pressure people to look for alternative investment vehicles," he said.

The FBI seized the virtual currency by getting hold of encryption keys for the bitcoins, according to Jerry Brito, George Mason University's technology policy director.

The keys were made available through seized computer equipment, Mr Brito said in a blog post.

The FBI then transferred the bitcoins to an address controlled by the US government, according to the seizure order (PDF).
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I wonder what sort of financial impact this had on the Winklevoss twins, who own about 1% of all the bitcoins in circulation (~$1.6 billion).
 
Irish#1

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BGIF said:
Feds shut down $1.2 billion criminal internet marketplace | Fox News




Bitcoins ... Bitcoins ... "currency designed to be as anonymous as cash" ... vbucks ... vbucks ... hmmm


"Dread Pirate Roberts" wasn't that Phammer's handle or was it his money man, McGibblets?


Not to fear guys, the NSA isn't listening, they're all on furlough, aren't they?


(sent from my burner phone)
Click to expand...

Pure genius. Kid sets up his own version of Ebay for drug dealers to peddle their bags of goodies and rakes in the profits. I hope he was smart enough to bury some of that cash under some tree.
 
irishpat183

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1 question....

WHY THE HELL WASN'T I AWARE OF SILK ROAD??!!!


Nothing like dealing with a potential ASU loss like a kilo of booger sugar and a night at the Spearmint Rhino...Sheesh




But really...insane that people were actually buying drugs online at that volume and nobody picked it up before.
 
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