Bitcoin-Based Drug Market Silk Road Thriving With $2 Million In Monthly Sales

Sparrowvsrevolution writes "Every day or so of the last six months, Carnegie Mellon computer security professor Nicolas Christin has crawled and scraped Silk Road, the Tor- and Bitcoin-based underground online market for illegal drug sales. Now Christin has released a paper (PDF) on his findings, which show that the site's business is booming: its number of sellers, who offer everything from cocaine to ecstasy, has jumped from around 300 in February to more than 550. Its total sales now add up to around $1.9 million a month. And its operators generate more than $6,000 a day in commissions for themselves, compared with around $2,500 in February. Most surprising, perhaps, is that buyers rate the sellers on the site as relatively trustworthy, despite the fact that no real identities are used. Close to 98% of ratings on the site are positive."

Comments

Re:Nice Ad Placement or DEA Honeypot

[CanHasDIY]

How exactly would your theoretical honeypot work? Only buyers need to provide anything remotely identifiable (e.g., shipping address). Do you think the DEA cares about going after kids who buy $100 worth of LSD?

Considering that arresting end users is pretty much the DEA's bread-and-butter, I'd say yes, yes they do.

From above link:

(2010 - crime - drug manufacturing arrests) Of the 1,638,846 arrests for drug law violations in 2010, 81.9% (1,342,215) were for possession of a controlled substance. Only 18.1% (296,631) were for the sale or manufacture of a drug.