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justin
..needs sleep
Australian
join:1999-05-28
kudos:15
Reviews:
·iiNet

silkroad

»www.bbc.co.uk/news/technology-24371894

So the surprise to me is it took the FBI this long to worm their way to the guy operating the site out of free wifi near his house in san fran.

Reading the indictment he made so many mistakes. His servers got imaged under his nose thanks to "international legal agreements", he posted questions on TOR/PHP integration under his name to stackexchange, he got hoodwinked into ordering a "hit" on someone and paying for it. He had a google plus and gmail account under his name. He ordered fake IDs with his picture on them, and had to talk (well, clam up) to homeland security when they got intercepted.

There has to be a hollywood film made about this:

»www.scribd.com/doc/172766650/Cri···Ulbricht

his google plus page:

»plus.google.com/101844174649242995101/posts


Soho97UK
Premium
join:2004-08-18
UK
kudos:1

1 edit
Maintaining true anonymity is a tricky business with a high profile site. I doubt he expected it to be the huge success it became.

I also expect book and movie deals, but assume he'll be spending quite a few years behind bars before he gets to enjoy the proceeds.

EDIT:

You can see how this is affecting Silk Road users on reddit - »www.reddit.com/r/silkroad


justin
..needs sleep
Australian
join:1999-05-28
kudos:15
Reviews:
·iiNet
I expect they will throw away the key. Attempted murder? he'll get life. They seized what was in escrow, in the site accounts, but clearly he made 10s of millions at least @ the current btc value.

With the difficulty converting btc back to cash in large quantities it could all still be in bitcoins sitting on a thumbdrive somewhere, waiting for someone who knows the key. Like shawshank redemption maybe he will get out at 65 and go to a tree in a field somewhere. Assuming the crypto currency survives till then.


dib22

join:2002-01-27
Kansas City, MO
said by justin:

Assuming the crypto currency survives till then.

He might crash the market cashing it out

PX Eliezer
Premium
join:2013-03-10
Graustark
kudos:7
I think this will remove a lot of the attraction of Bitcoin.

Takes out one major place to use it.


justin
..needs sleep
Australian
join:1999-05-28
kudos:15
Reviews:
·iiNet

1 recommendation

I'm not sure, they've taken out one guy pretty effectively but the vendors, the customers, and the currency is still online. There are competing sites following the same model. This will boost the competition one of which will step up to fill the gap.

As I read somewhere: napster shuttered! the end of pirating, no, not by a long shot.

PX Eliezer
Premium
join:2013-03-10
Graustark
kudos:7
Reviews:
·Optimum Voice
·callwithus
·Callcentric
reply to justin
Silk Road busted with help of mysterious package from Canada

....A small package of fake IDs coming from Canada helped bring down Silk Road, a billion-dollar drug empire operating in the deeper recesses of the internet....

....On July 26, Homeland Security investigators showed up at the San Francisco address written on the package. There they met Ulbricht....

»www.thestar.com/news/world/2013/···oad.html


Camaro
Question everything
Premium
join:2008-04-05
Westfield, MA
kudos:1
Reviews:
·Verizon Wireless..
·Comcast
reply to Soho97UK
said by Soho97UK:

Maintaining true anonymity is a tricky business with a high profile site.

The way I figure if you are going to do something like this that basically paints a bulls eye on you is at least take basic steps, like hacking someone else's wifi on the other side of your state, maybe the next state over, don't use speed pass or any car tracking system to develop a pattern on you and map out roads with no speed cameras, turn your cell phone off, AND DON"T USE YOUR PERSONAL COMPUTER. You know basic stuff a geek should know. He deserved to get caught being that naive.


BonezX
Basement Dweller
Premium
join:2004-04-13
Canada
kudos:1
reply to justin
i'm surprised they just didn't tag him when he tried to transfer bitcoins for purchases. the little cryptodollars are tracked through every transaction, it wouldn't be hard to "sell" him something and get the information from the transaction.

»en.bitcoin.it/wiki/Anonymity

it isn't terribly hard to find someone through them if you transfer them to the wrong person.


Mike
Premium,Mod
join:2000-09-17
Pittsburgh, PA
kudos:1
basically set up millions of honey pots and hope for the best?

That's an interesting idea.


justin
..needs sleep
Australian
join:1999-05-28
kudos:15
Reviews:
·iiNet
reply to BonezX
said by BonezX:

i'm surprised they just didn't tag him when he tried to transfer bitcoins for purchases.

Since he apparently has a huge bitcoin wallet - as yet unencrypted by the authorities - it is possible that the majority of his profits were kept in btc.

Since the entry point and exit point for bitcoins were not very well regulated it was (and probably still is) possible to convert money to bitcoins and bitcoins to money without a solid tie to a real life identity.

Silk road also "tumbled" coins to de-link a given bitcoin value from a specific transaction. I'm imagining any serious vendors would have further tumbled their coins before daring to cash any in. Although there is a trail, and it is public, it is a long series of anonymous numbers, not a long series of real life identities. Without knowing all the links in a chain, and without any other supporting evidence, having possession of a bitcoin previously (for example) stolen is not by itself proof of anything.


dib22

join:2002-01-27
Kansas City, MO
reply to justin
Looks like $27 million down, who know how much more to go...

»arstechnica.com/tech-policy/2013···suspect/

So if the fbi cashes those in all at once... will they crash the market?


BonezX
Basement Dweller
Premium
join:2004-04-13
Canada
kudos:1
i don't know about crashing it, but it would drastically lower the worth of bitcoins for a little while.