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Feds Shut Down Tor-Using Narcotics Store

Fluffeh writes "Federal authorities have arrested eight men accused of distributing more than $1 million worth of LSD, ecstasy, and other narcotics with an online storefront called 'The Farmer's Market' that used the Tor anonymity service to mask their Internet addresses. Prosecutors said in a press release that the charges were the result of a two-year investigation led by agents of the Drug Enforcement Administration's Los Angeles field division. 'Operation Adam Bomb, ' as the investigation was dubbed, also involved law enforcement agents from several U.S. states and several countries, including Colombia, the Netherlands, and Scotland. The arrests come about a year after Gawker documented the existence of Silk Road, an online narcotics storefront that was available only to Tor users. The site sold LSD, Afghani hashish, tar heroin and other controlled substances and allowed customers to pay using the virtual currency known as Bitcoin."

17 of 301 comments (clear)

  1. Finally by royallthefourth · · Score: 5, Funny

    Someone's finally found a good reason to use bitcoin

  2. I mis read it anyway.... by trancemission · · Score: 5, Funny
    I first read it as:

    Feds Shut Down For Using Narcotics Store.

    Hooray I thought.

    I should lay off the Narcotics......

  3. Read between the lines by Anonymous Coward · · Score: 5, Insightful

    The last thing government wants is to "solve" the "problem" and eliminate the black market. After all, they created the black market. They created it specifically to justify the expansion of their business (i.e. by "solving" the "problems" which they themselves created). Notice that I quite deliberately called government a business.

    If you need proof, simply follow the money. Prohibition has justified hundreds of billions in spending, and the kicker is that the "tougher" they get (i.e. the more they spend), the more sophisticated the black market becomes, and therefore the more money they need to "solve" the "problem". It's a cycle of WIN for government, and a cycle of LOSE for everyone else (at least the ones who can see through the smokescreen and admit the truth).

    When it comes to government, ALWAYS follow the money before listening to a word they say.

    1. Re:Read between the lines by RadioElectric · · Score: 5, Insightful

      Because of who gets the money that the government spends.

  4. Nope by betterunixthanunix · · Score: 5, Interesting
    1. Anonymous payment systems are not good because they let you evade the government, they are good because they protect spenders and merchants from various types of fraud.
    2. A large drug dealing operation that uses Bitcoin is no better off than one which uses cash. The drug dealers still need to pay their rent and buy their groceries, and they cannot do that with Bitcoin. All the DEA would have to do is to watch Bitcoin exchanges to gather lists of suspects.
    3. You still need to ship the drugs, so you are still going leave a trail that points to you.
    --
    Palm trees and 8
    1. Re:Nope by TheLink · · Score: 5, Informative

      The drug dealers still need to pay their rent and buy their groceries, and they cannot do that with Bitcoin.

      The big boys just use stuff like Wachovia/Wells Fargo and Bank of America: http://www.bloomberg.com/news/2010-06-29/banks-financing-mexico-s-drug-cartels-admitted-in-wells-fargo-s-u-s-deal.html
      A few more details here: http://www.guardian.co.uk/world/2011/apr/03/us-bank-mexico-drug-gangs

      Wachovia admitted it didn't do enough to spot illicit funds in handling $378.4 billion for Mexican-currency-exchange houses from 2004 to 2007. That's the largest violation of the Bank Secrecy Act, an anti-money-laundering law, in U.S. history -- a sum equal to one-third of Mexico's current gross domestic product.

      Must have been really difficult to notice the flow of 378 billion over 3 years?

      Or maybe not:

      "It's the banks laundering money for the cartels that finances the tragedy," says Martin Woods, director of Wachovia's anti-money-laundering unit in London from 2006 to 2009. Woods says he quit the bank in disgust after executives ignored his documentation that drug dealers were funneling money through Wachovia's branch network.

      If you're going to make those drugs illegal you should make the money laundering illegal AND enforce those laws. No wrist-slaps. You see the Feds doing anything that would make the Banks change?

      "There's no capacity to regulate or punish them because they're too big to be threatened with failure," Blum says. "They seem to be willing to do anything that improves their bottom line, until they're caught."

      That's complete bullshit. All you have to do is throw those involved into prison. Keep the bank running and let others take over the jobs. I'm sure the bank can figure out who was involved in the 300 billion. If the bank can't then the people responsible for keeping track should go to prison, just for criminal negligence.

      They seem able to throw the small fry into prison:

      All three Oropezas pleaded guilty in U.S. District Court in Brownsville to drug and money-laundering charges in March and April 2008. Oscar Oropeza was sentenced to 15 years in prison; his wife was ordered to serve 10 months and his daughter got 6 months.

      So in my opinion this shutting down of narcotics stores is just an expensive and pointless show.

      --
  5. They're not drug dealers, they're job creators by jholyhead · · Score: 5, Funny

    Just another example of the job killing regulations enacted by the Obama administration. When will the federal government get out of the way of small business owners and job creators?

  6. As usual, no technical details by BenEnglishAtHome · · Score: 5, Interesting

    From the article, emphasis mine:

    ...the operators used software provided by the TOR Project that makes it virtually impossible to track the activities of users' IP addresses. The alleged conspirators also used IP anonymizers and covert currency transactions to cover their tracks. The indictment, which cited e-mails sent among the men dating back to 2006, didn't say how investigators managed to infiltrate the site or link it to the individuals accused of running it.

    I'm willing to bet that money transfers and the transfer of goods sold are still far more discoverable than individual Tor users but any assurances of that would certainly be welcome. I hope the Tor Project will be forthcoming with some as soon as some technically useful info is available.

  7. Re:LSD and extasy by betterunixthanunix · · Score: 5, Informative

    Except that scientists have studied LSD, for decades, and there has been little evidence of people forming dependences on it. This is in stark contrast to the three most popular legal drugs: caffeine, tobacco, and alcohol.

    --
    Palm trees and 8
  8. Re:Example proves what many have long suspected... by ledow · · Score: 5, Insightful

    "The indictment, which cited e-mails sent among the men dating back to 2006, didn't say how investigators managed to infiltrate the site or link it to the individuals accused of running it."

    For all you know, they packaged up the drugs without wearing gloves and their fingerprints were in a database somewhere, and they then posted them (with a nice local postmark) to a Fed posing as a customer (how would you know? Their customer will be just as anonymous). Somehow you had to get a physical product to someone else - and that's probably the weak-point. Hell, they could have just offered to drop it off on a street corner as a "one-off" delivery and got caught that way, you have no idea.

    It's then only a small step and the simple matter of suspecting they may be a vast drug operation in place, finding out anything you can from the drugs collected by similar methods and narrowing down until you can just tap someone's whole Internet connection (Tor provides ANONYMITY, not SECURITY). Which they seem to have because they have emails of these people talking to each other.

    Or maybe they just talked their way into an IRC channel or something that these guys used. You have absolutely no idea how they were caught, or whether they were just incredibly thick.

    Using a tool badly does not mean the tool is broken.

  9. Re:Headline = Misleading by nozzo · · Score: 5, Funny

    wow all this posting over a missing hyphen. If only we could turn our energetic posting into solving cold-fusion then the world would be a happier place. Come to think of it we can skip the cold-fusion and just use the hot air on this forum. Don't mark me Troll - I'm a nice person!

  10. Re:Hyphen! by K.+S.+Kyosuke · · Score: 5, Funny

    This is what hyphens are for.

    You mean they could have shut down Tor using hyphens?

    --
    Ezekiel 23:20
  11. Re:LSD and extasy by Iskender · · Score: 5, Informative

    Reference please?

    http://www.drugabuse.gov/publications/infofacts/hallucinogens-lsd-peyote-psilocybin-pcp

    Most users of LSD voluntarily decrease or stop its use over time. LSD is not considered an addictive drug since it does not produce compulsive drug-seeking behavior. However, LSD does produce tolerance, so some users who take the drug repeatedly must take progressively higher doses to achieve the state of intoxication that they had previously achieved.

    I don't have the time to dig up a scientific paper but the article does have sources at the end.

  12. Re:Headline = Misleading by Anonymous Coward · · Score: 5, Funny

    >> Tor-Using Narcotics Store

    I tried Tor once. That shit will fuck you up. One hit and I was running around the parking lot naked, dueling with gnomes (or the Pasadena Police Dept, depending on what astral plane you were on at the time).

  13. Re:Hyphen! by M.+Baranczak · · Score: 5, Funny

    You mean they could have shut down Tor using hyphens?

    No. That particular vulnerability was fixed a long time ago.

  14. Re:Even that is ambiguous.. by TheCarp · · Score: 5, Insightful

    Now if they would just stop this crusade against people who don't choose alcohol as their drug of choice, it would be an even bigger step. Maybe if they stopped driving all this business underground, and stopped putting it all in the hands of major drug cartels....that would be swell too.

    Maybe if they let Glaxco-smith-kline put all the major drug cartels out of business? That should take all of a few months for them.

    Even dumber is...these sites tend to be pretty small. I doubt many cartels are using them, so its mostly small time dealers who are also techies. This isn't a win, this is more stupid. More lives ruined over a problem the government caused initially by creating the black markets.

    Nearly every drug problem they have tried to "solve" with prohibition has only gotten worst. The ones they have driven off the streets completely tend to be the less popular drugs anyway, and just drive the users to even less safe alternatived.

    Good job morons. Maybe if they keep banging their heads against the wall, the problem will just go away....clearly they just need to arrest, strip search, and lock up a few more people. That will totally solve the problem!

    --
    "I opened my eyes, and everything went dark again"
  15. lessons learned by green1 · · Score: 5, Interesting

    What the lesson should be:
    - We already have the resources and abilities to tackle real crimes using new technologies. no new laws are required.

    What lesson law enforcment/government will likely spin on this one:
    - Criminals are now using new technologies, we need more draconian laws to allow us to catch every single one of them.