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Silk Road Shut Down, Founder Arrested, $3.6 Million Worth of Bitcoin Seized

New submitter u38cg writes Ross William Ulbricht, known as 'Dread Pirate Roberts,' was arrested in San Francisco yesterday and has been charged with one count each of narcotics trafficking conspiracy, computer hacking conspiracy, and money laundering conspiracy, according to a court filing. Silk Road has been shut down and some $3.6m in Bitcoin (26,000 Btc) seized. The question is — how?" onyxruby submitted a link to the criminal complaint (PDF; coral cache might work better). The court filing indicates that they seized the actual servers and recovered their contents, making numerous references to the private messaging system. Also according to the court filing, the Silk Road was used to sell ~$1.2 billion in illicit goods since being founded in 2011.

139 of 620 comments (clear)

  1. Tor compromised by MetalliQaZ · · Score: 5, Insightful

    I think it can be argued that Silk Road practiced the use of Tor as well as anyone could have. They still got pinched. Although it may come out that an insider turned informant, it seems that the Tor system is compromised by the snoops.

    --
    "Here Lies Philip J. Fry, named for his uncle, to carry on his spirit"
    1. Re:Tor compromised by Anonymous Coward · · Score: 5, Insightful

      *(Maybe. We don't know really.)

      Silk Road, however, is exceptionally well known as an illicit enterprise, so despite anonymity of packet data (or not...) they're targeted anyway.

      If known to be engaging in criminal activity, Tor is not really going to save you or be the critical flaw in your plan, either.

    2. Re:Tor compromised by Bulge+Temptingly · · Score: 5, Informative

      Nope, apparently Canadian authorities turned up some fake ID in a routine postal search.

    3. Re:Tor compromised by i+kan+reed · · Score: 2, Informative

      Tor isn't a magic bullet. It's still fundamentally putting your trust in someone else. There's always a human element to relay communications. Any complicit person can yield some useful information. You can encrypt what you're saying, but someone has to know who you're talking to.

    4. Re:Tor compromised by Anonymous Coward · · Score: 5, Informative

      it appears that agents found Ulbricht after Canadian border authorities routinely checked a package intended for his San Francisco home and discovered nine fake identification cards within, which Ulbricht allegedly was seeking to obtain to rent more servers to power Silk Road as it massively expanded.

      source: http://www.forbes.com/sites/alexkonrad/2013/10/02/feds-shut-down-silk-road-owner-known-as-dread-pirate-roberts-arrested/

    5. Re:Tor compromised by Drachs · · Score: 5, Interesting

      If I was guessing, I'd guess it was bitcoin, not Tor that did him in. He was moving way too much volume to hide all that. After all, the block chain is public. The FBI only has to lean on the various organizations that turn bitcoin into cash. If it gets the addresses of all their wallets, all their customer account information, and the identity of some coins that were spent on the silk road, it only has to work backwards to see who turned those coins into cash. People think bitcoin is anonymous, but it keeps a record of every transaction. This is probably the beginning of the end for bitcoin. I'm not sure it's mature enough to sustain itself without the black market support.

    6. Re:Tor compromised by Anonymous Coward · · Score: 3, Informative

      On reddit it was reported that a parcel containing fake IDs (presumably to buy servers) mailed to DPR was intercepted at the Canadian border, and this is what lead to the arrest.

    7. Re:Tor compromised by Anonymous Coward · · Score: 5, Informative

      Nope.
      http://krebsonsecurity.com/wp-content/uploads/2013/10/UlbrichtCriminalComplaint.pdf
      TLDR version:
      A user named altoids advertised SR on various forums very early on.
      Later the same user wanted some dev work done, used a gmail address as contact.
      Same gmail address leads to a LinkedIn profile ... and a name and address.
      Seize that dudes computers.
      Find keys to the kingdom for the SR servers.

    8. Re:Tor compromised by phantomfive · · Score: 2

      It's was almost certain that Silk Road would be shut down from the moment it was started. Money has to trade hands, eventually you'll be able to trace it to the source.

      --
      "First they came for the slanderers and i said nothing."
    9. Re:Tor compromised by circletimessquare · · Score: 4, Interesting

      it seems that the Tor system is compromised by the snoops.

      (facepalm)

      tor was MADE BY the snoops, FOR the snoops

      it started as a us naval research lab project to allow spies and dissidents in hostile countries to communicate with the us spy network without fear of being spied on by hostile governments

      let me repeat: tor was made by the american government

      of course it's been decentralized since then, but you're an idiot if you don't think they still don't have their hooks in it

      http://en.wikipedia.org/wiki/Tor_(anonymity_network)#History

      --
      intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
    10. Re:Tor compromised by Dunbal · · Score: 5, Insightful

      it seems that the Tor system is compromised by the snoops.

      The safest option is to assume that EVERYTHING is compromised nowadays. Your OS. Your security certificate server. Your ISP. Your VPN. SSL. Your webcam. Everything.

      --
      Seven puppies were harmed during the making of this post.
    11. Re:Tor compromised by gl4ss · · Score: 5, Interesting

      ...a canadian routine postal search? sounds a bit of fabrication(you know, finding evidence illegally and then fabricating something for a bust). I seriously doubt they have fakeid smelling dogs.

      but was he really hosting the operation from san fransisco? why, why on earth? why have anything tying him to it at home??

      --
      world was created 5 seconds before this post as it is.
    12. Re:Tor compromised by root_brewski · · Score: 5, Informative

      From Forbes: "Agents found Ulbricht after Canadian border authorities routinely checked a package intended for his San Francisco home and discovered nine fake identification cards within, which Ulbricht allegedly was seeking to obtain to rent more servers to power Silk Road as it massively expanded." Link: http://www.forbes.com/sites/alexkonrad/2013/10/02/feds-shut-down-silk-road-owner-known-as-dread-pirate-roberts-arrested/

    13. Re:Tor compromised by blueg3 · · Score: 3, Interesting

      That is an enormous logical leap. Silk Road was running a high-profile, long-running Tor service, which is inherently dangerous and certainly more dangerous than many other applications of Tor. Is there evidence that suggests they were particularly skilled in doing so safely? There are also a number of well-known (and nearly-unavoidable) attacks against the Tor design. They are difficult, but then, they've been running a high-profile site for a long time, which makes it a lot easier to be targeted by even difficult attacks.

      Finally, there are plenty of ways for an operation that large to be undone that are much more likely compromise of Tor itself. Most of these things are solved by conventional police work because (a) "real" evidence looks a lot better in a trial and (b) people are a lot better at making mistakes than most security technologies.

    14. Re:Tor compromised by jovius · · Score: 2

      Bitcoin is not an anonymous system, so the transactions should be trackable. I'd guess that's one of the weak links. Probably most of the users don't anonymize their Bitcoin usage. Silk Road may have accepted Bitcoins as a tip for example - it anyway gets a percentage of the transactions, and from all of the BC traffic a couple of hotspots can be identified.

      The owner himself probably created a noticeable trail of real money. An Infomant is a good guess - when money and drugs are involved some of it is real enough for somebody to get busted (they accuse the guy to have dealt 1kg of mixed narcotics himself). They have probably been on the owner himself for a long period of time.

      They also accuse him of hiring an assassin to eliminate somebody "who was threatening to release the identities of thousands of users or the site"...

    15. Re:Tor compromised by Maxo-Texas · · Score: 4, Insightful

      I'd guess it was being too big which did him in.

      Greed and hubris-- always risky when doing illegal activities.

      In fact- if I were doing something illegal- when regular articles about the silk road started being posted, I'd shut things down and take my profits.

      If nothing else, those articles are embarrassing for law enforcement so they focus on that issue to stop the embarrassment.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    16. Re:Tor compromised by TheSpoom · · Score: 5, Insightful

      Wait, so after all the NSA bullshit, he was caught by Canada? Oh, the irony.

      --
      It's better to vote for what you want and not get it than to vote for what you don't want and get it.
      - E. Debs
    17. Re:Tor compromised by Anonymous Coward · · Score: 4, Funny

      NSA procedure is to blame all constitutional violations on Canada, because they automatically say "sorry" when accused of anything.

    18. Re:Tor compromised by goodmanj · · Score: 2

      Wow, what a coincidence that the Canadian authorities happened to open just the right package. A lucky break for them!

    19. Re:Tor compromised by amicusNYCL · · Score: 4, Interesting

      I don't know if Tor is compromised or not, but according to the complaint they were on to him since 2011. He used an account called "altoid" on the regular net to both promote the launch of the site, and elsewhere to solicit IT help directing people to his personal Gmail address (with his name right there in it).

      --
      "Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
    20. Re:Tor compromised by Capt.DrumkenBum · · Score: 2

      I buy a lot of stuff online, and always look for postal delivery. Every few months I will get a package that has been opened by Canada Customs. Since my purchases are all legal, it is not a big deal, and they even tape the container closed with "Inspected by Canada Customs" tape.
      So it is possible.

      --
      If I were God, wouldn't I protect my churches from acts of me?
    21. Re:Tor compromised by Minwee · · Score: 5, Funny

      Sorry about that.

    22. Re:Tor compromised by h4rr4r · · Score: 2

      Yeah, getting that big is not good.
        Shut it down and start a new one. Heck, start several. Just don't keep going once Forbes and other not in the know folks start talking about it.

    23. Re:Tor compromised by Anonymous Coward · · Score: 5, Insightful

      Not a surprise, they routinely open whatever packages the NSA tells them to.

    24. Re:Tor compromised by Anonymous Coward · · Score: 2, Interesting

      With the fact that every transaction in the block chains are easily traceable, I've wondered if Satoshi Nakamoto is really some crypto-savvy law enforcement group. Had Bitcoin been designed to be truly anonymous, it would be designed along the likes of Chaum's currency (Digicash) which is truly anonymous with blind signatures.

      I am not going to be surprised if other people end up winding on the wrong end of a kicked-down door when their use of BitCoins for something gets them charged with something, perhaps years later.

      BitCoin is quite a "cool" technology, but with the fact that anyone can see what was purchased combined with the fact that early adapters are the ones who actually make the cash when it is trivial to mine blocks (generate value from nothing) while people coming in later have to bring something of value to trade for BitCoins, it just reeks too much of a pyramid/Ponzi scheme for my tastes.

      As for me, I'll just stick with PayPal. Only the usual LEOs and such can see my purchases when I use conventional Euros or dollars. Not everyone who has access to the block chain.

    25. Re:Tor compromised by Beardo+the+Bearded · · Score: 5, Informative

      It's not a "lucky coincidence". I'm Canadian and I buy some stuff online. Here's why they tend to open packages:

      1. Canadian Border Services gets $5 for every package they open. (I call this the "putting their dick in it" fee.) You can not appeal this fee.
      2. As you have more stuff sent to you, they tend to open more of your packages. My ex-wife ordered lots of stuff online (mostly knitting supplies) and towards the end of her interest in her hobby, they were opening 90% of her packages. Mine were rarely opened.
      3. They get a little more openy when you're doing your own brokerage. FedEx and UPS charge about $40 for brokerage, so some people do it themselves for $10. This requires you to go down to the border (or quasi-border), which in my city is the airport.

      So it wasn't a tip-off, it was just CBS looking for extra cash.

      --

      ---
      ECHELON is a government program to find words like bomb, jihad, plutonium, assassinate, and anarchy.
    26. Re:Tor compromised by Beardo+the+Bearded · · Score: 2

      Don't forget the $5 they get for an "inspection fee". This was bad luck + CBS grubbing for cash.

      --

      ---
      ECHELON is a government program to find words like bomb, jihad, plutonium, assassinate, and anarchy.
    27. Re:Tor compromised by lgw · · Score: 2

      I wonder how much of the pot traffic on SR is from sellers who can sell legally in their own state. Most of the problems for the seller vanish if you're also selling legally. We might find out if there are follow-on busts.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    28. Re:Tor compromised by MarkvW · · Score: 2

      I bet you the investigation cost much less than what the yield of the forfeited assets will be.

    29. Re:Tor compromised by jonbryce · · Score: 4, Insightful

      The main thing is that you have to turn your stash of illicit bitcoins into real cash for most things. Someone trying to sell a load of bitcoins is going to attract attention from the authorities, and from that, they can figure out if you got them from selling drugs, which is definitely illegal, or from running a massive mining rig, where arguably legal, and it would be financial services regulators that would consider it rather than drugs enforcement people.

    30. Re:Tor compromised by Anonymous Coward · · Score: 3, Interesting

      correct, TOR is owned. look at this screenshot of prism:

      http://www.scribd.com/doc/166821334/FlyingPig

      right tab...

    31. Re:Tor compromised by 93+Escort+Wagon · · Score: 3, Informative

      So you feel it is ironic that the NSA didn't catch something that the NSA has publicly stated they are not looking for? NSA isn't law enforcement, they may sometimes help them out or give them info they have found, but it isn't their job to collect data for busts like this.

      http://www.reuters.com/article/2013/08/05/us-dea-sod-idUSBRE97409R20130805

      We already know the NSA is sharing information about illicit drug trafficing with the DEA, and asking the DEA to obfuscate where the information is coming from.

      --
      #DeleteChrome
    32. Re:Tor compromised by 93+Escort+Wagon · · Score: 4, Insightful

      Incidentally, this case shows exactly why all this invasive, unconstitutional NSA monitoring is actually unnecessary. By all accounts this guy was nabbed using good old-fashioned investigative work by the various authorities.

      It can be done. Sure, it's just harder that way - but our personal liberties are worth that cost.

      --
      #DeleteChrome
    33. Re:Tor compromised by girlintraining · · Score: 4, Insightful

      Do you have any evidence that this happened, or are you confusing Silk Road with Freedom Hosting?

      You mean besides the criminal complaint posted in the article you were supposed to read before shoving your foot in your mouth?

      Page 6: "as well as forensic analysis of computer servers used to operate the Silk Road website that have been located and imaged during the investigation"

      Page 11: "... instructs vendors to 'vacuum seal' packages containing narcotics, in order to avoid detection..." "use a different address from the user's own address to receive shipment... friend's house or P.O. box"

      "Since November of 2011, law enforcement agents participating in this investigation have made over 100 individual undercover purchases..."

      Thanks to the Silk Road taking a percentage of all proceeds, they've been able to locate the ledger for the entire website; Every transaction made, as well as the so-called "tumbler" used to anonymize bitcoins used to make purchases on the website... as the transaction logs for "tumbled" bitcoins was also amongst the items recovered.

      When you dig into the complaint it becomes painfully clear how sloppy this guy was: He had a Google+ page, a LinkedIn profile, youtube, etc., -- there is considerable captured traffic between the Silk Road webserver sent outside the Tor network, including e-mails and other accounts authorities are now using to collect the realworld identities of many of the administrators and regular contributors to the site. He didn't encrypt anything on the servers -- they didn't even need a fucking password to get this information.

      Backup servers which had SSH keys to login to were also recovered, so what little was encrypted... well, let's just say the root password of the Silk Road might as well have been "1234".

      Every PO box, every ship-to address... he kept it all. There was no data retention policy this guy used... he was a data hoarder, and the only reason it took the government this long wasn't because of how hard it was to track him down in real life, but because of the sheer crapflood of forensic data bogged down their entire cybercrime division. And get this... they bought the malware later used to infect Freedom Hosting off Silk Road!.

      Someone should built a monument to this guy's stupidity... Tor might anonymize your IP address, but this guy fucked over the privacy of everyone that visited with gross incompetence and greed all on his own. The government didn't need to go the extra mile... all that stuff with Freedom Hosting getting infected (Hey, check out that malware sometime; It records which Tor sites you visit and when. Can't think of how Silk Road might have been affected there!) was just testing out their toys. It wasn't necessary, but you know... if you're gonna do it, might as well overdo it.

      --
      #fuckbeta #iamslashdot #dicemustdie
    34. Re:Tor compromised by kermidge · · Score: 5, Insightful

      From reading an article on this before coming here, I'm still flabbergasted that he was using servers in the U.S. Color me naive but I don't see where that made sense.

      Second thing, after reading more, is why the blazes did he have anything to do with SR sent directly to himself?

      I realize 20-20 hindsight and all, but c'mon, seems to me that's all 'security 101' stuff, no?

    35. Re:Tor compromised by TheCarp · · Score: 3, Informative

      > Or sell it off for legit cash and move somewhere offshore.

      Previous interviews with Roberts indicate that, just like his namesake, he indeed was not the founder but a guy who became involved and later purchased it from the founder. If the stories are to be believed, he was the first person to break their security and then, played ethical hacker and told them how he broke in and helped them fix the problem.

      http://www.forbes.com/sites/andygreenberg/2013/08/14/meet-the-dread-pirate-roberts-the-man-behind-booming-black-market-drug-website-silk-road/

      --
      "I opened my eyes, and everything went dark again"
    36. Re:Tor compromised by TheCarp · · Score: 2

      I think we have a winner. Even when you take it to the cause of murder.... what scenario can you even imagine where this guy contemplates taking out a hit on someone if not for.... the millions of dollars and decades in jail he was personally facing if discovered?

      All of that...100% is caused by prohibition. drugs would barely be a profitable business to a few big companies and maybe a small number of mom and pop farmers if not for prohibition

      You give people lots of resources and then put them in a position to be facing violence and years of incarceration and what the fuck do you expect people to do?

      And all the while.... they haven't even touched the addiction rate, so what is is the fuking point of creating these situations and putting people in situations to want to kill eachother?

      This is just more lives ruined by prohibitionists.

      --
      "I opened my eyes, and everything went dark again"
    37. Re:Tor compromised by BlackPignouf · · Score: 2

      Maybe the "good old-fashioned investigative work by the various authorities" came after NSA monitoring.
      Maybe the NSA doesn't want you to know that it's been involved in this case.

    38. Re:Tor compromised by TheCarp · · Score: 2

      Are you sure that is the truth? For all we know that IS how he was found, and information gained in that manner was then used to create a new evidence trail for public release and indictment. This is not a new technique and is one the DEA has been known to use. There have been several cases based on drugs "found" at "traffic stops" that were really the result of DEA special operations tips.

      --
      "I opened my eyes, and everything went dark again"
    39. Re:Tor compromised by onyxruby · · Score: 2

      Just remember whoever fills in the vacuum left by this raging idiot (and I am being kind in calling him a raging idiot) is just as likely to be FBI, Interpol or another like kind government agency. You see the problem with having black markets is they don't attract the most ethical of people, you know the ones that practice their due diligence?

      The server that is set up correctly is the one that is likely the one made to withstand attacks from competitors from the Russian mafia on down. That site has to last long enough to gather evidence that can be used to take down an entire series of drug dealers all over the world. That means the site needs to be secure enough and well built enough to withstand competitors. That site is going to require professionals that won't make sloppy mistakes and a team of professionals isn't cheap.

      What's your appetite for risk? Do you want the well built site that's professionally run and might be a front for the FBI or the half ass site that is probably run by a raging idiot or the mafia? Pick your poison.

    40. Re:Tor compromised by Anonymous Coward · · Score: 5, Insightful

      What we can learn from this as well as history, is they can take down the silk road site all they want, there will be 5 more to take its place and learn from its mistakes before you can say drug war.

      Even after all these years I find it hard to accept that so many people have a problem with people they don't even know doing things they never would have heard about had it not been for the theft and abuse of their own rights and money. Strange world we live in...

    41. Re:Tor compromised by onyxruby · · Score: 2

      I think it can be argued that Silk Road practiced the use of stupidity as well as anyone could have. The fact that they used TOR as a front door when they were completely sloppy with the rest of their practices does not mean they were somehow brilliant.

      What they did was the rough equivalent of buying a Medeco lock for the front door of the house while leaving the patio door open with only a screen door blocking the entry and the windows all cracked open an inch. They then handed out Medeco keys to anyone that wanted one.

      They then threw a two year long kegger with all the drugs you could afford where everyone recorded everything, deleted nothing and pretended nothing could ever come back to haunt them since they used a tumbler to hide their bitcoin trail. Your going to see a lot more warrants issued in any number of jurisdictions as a result of this case.

      Read the warrant, it's a case study in sloppy security and I've got to imagine a number of white papers will be written about the sheer idiocy of the Dread Pirate Roberts. The /only/ reason it survived as long as it did was to allow law enforcement to catch more and more drug dealers.

    42. Re:Tor compromised by runeghost · · Score: 4, Insightful

      Why was he even in the U.S. at all?

    43. Re:Tor compromised by Charliemopps · · Score: 2

      Well, I love a good conspiracy theory as much as the next guy but...

      My experience with customs is that they don't exactly "Randomly" select packages on their way through. They X-ray them and look for obvious things... weapons, etc.... a lot of contraband comes in packaging that's easily identifiable via Xray. Then, and here's the key, if they find an address that has something rather innocuous getting sent to it, they'll let it go by or just send a one of their red letters. But then you're on their watch list, and they open everything going to your house for months. I'm guessing this guy ordered some stuff, got himself flagged and then customs waited until they had something good before nailing him. Happens all the time.

    44. Re:Tor compromised by MarkvW · · Score: 2

      His accomplices are pretty nervous now, I reckon.

    45. Re:Tor compromised by JesseMcDonald · · Score: 4, Informative

      You can encrypt what you're saying, but someone has to know who you're talking to.

      Actually, no. Someone has to know who you are, and someone has to know who's being talked to, but they needn't be the same person. The way Tor works is that there are at least two "interior", routing-only nodes. Let's call the sender A and the receiver D; the interior nodes are B and C. A opens an encrypted connection to B, and tells it to connect to C. A then opens an encrypted channel to C using B as a relay, and yet another encrypted channel to D relaying through both B and C. B knows about A and C; C knows about B and D; and D knows about C. Unless the nodes are sharing information, none of B, C, or D know that A is communicating with D.

      Note that this bust didn't result from compromising Tor; the SR operator was discovered through old-fashioned customs inspections.

      --
      "The state is that great fiction by which everyone tries to live at the expense of everyone else." - Bastiat
    46. Re:Tor compromised by interkin3tic · · Score: 3, Informative
      Portugal decriminalized drugs, including hard drugs. The problems with drugs went away.

      "Judging by every metric, decriminalization in Portugal has been a resounding success," says Glenn Greenwald, an attorney, author and fluent Portuguese speaker, who conducted the research. "It has enabled the Portuguese government to manage and control the drug problem far better than virtually every other Western country does."

      It's fine to hypothesize whatever, but from what I can tell, hard evidence suggests there are easy solutions. I have yet to see any case studies that show prohibition working, in contrast.

    47. Re:Tor compromised by Brianwa · · Score: 2

      Yesterday I installed the latest version of Skype on my laptop. It turned on my webcam, took my picture, and tried to set it as the profile image for my Skype account.

      Of course, it's crazy to expect to be pseudonymous on skype but that was still a little unsettling.

    48. Re:Tor compromised by Zero__Kelvin · · Score: 2

      Because they aren't called the "Canadians Without Borders Service"?

      --
      Guns don't kill people; Physics kills people! - John Lithgow as Dick Solomon on Third Rock From The Sun
    49. Re:Tor compromised by ftobin · · Score: 2

      This time it's appropriate to Blame Canada!

    50. Re:Tor compromised by tlhIngan · · Score: 2

      Don't forget the $5 they get for an "inspection fee". This was bad luck + CBS grubbing for cash.

      Cheapest by far.

      FedEx charges $25. UPS I've seen anywhere from 20% to 200%. $5 for mail? hell yeah. (And yes, even if it goes through FedEx or UPS it may get inspected). The 200% was from when they wanted $20 on a $10 item. But they tack on so many bogus fees and other crap you can easily look forward to a $50+ bill.

      And sometimes they don't even ding me.

    51. Re:Tor compromised by spacefight · · Score: 3, Insightful

      Could as well be parallel construction at its finest....

    52. Re:Tor compromised by TheCarp · · Score: 5, Interesting

      > Legalization of heroin or other highly addictive drugs would be disastrous.

      I hear this a lot; but what is it even based on? I used to be just a "legalize pot" guy, but the more I looked at it, the more I found that drug prohibition didn't solve, or even help, a single problem.

      Do you know what percentage of people in burn units in the US (ever been to a burn unit btw? not a fun place) are there for cooking meth? Its about half. Yes....HALF the people in burn units. How the hell did we get here?

      Meth has been around since the fucking 1930s. Never before in history could you say half of the people being treated for severe burns came from meth cooking, why now? The answer is fairly simple.... the DEA pushed other drugs off the market, and in the vacuume, people looking to make a quick buck or get their fix, asked "What is the easiest stimulent drug I can make at home" turns out...meth was the winner.

      So they took a problem...and made it worst. They did that with fucking everyting. Would we have IV drug use without prohibition? Sure, a few. However, I doubt it would be nearly as popular. I mostly doubt it because, people were using other drugs before meth became so available.

      Krokodil or however they spell it.... is desomorphine. Everything I read about it indicates it would be a fine drug for opiate addicts. Its fairly short acting, it produces less respiratory distress (ie its safer). However.... its also cheap to produce in your kitchen from codiene. Why are people doing it? Because they can't buy anything cheaper! Who the hell would whip up something in their kitchen and inject it, if, for a similar price, they could buy it?

      Look at the swiss heroin study, allowed users cheap, fairly priced heroin and gave them a safe place to shoot up. Quickly the subjects of the study ceased illegal activities and got jobs.

      Frankly the claims of problems with legalization sound no different and are based on no more sound evidence than claims that accepting homosexuality is going to turn children gay.

      --
      "I opened my eyes, and everything went dark again"
    53. Re:Tor compromised by bill_mcgonigle · · Score: 4, Informative

      Legalization of heroin or other highly addictive drugs would be disastrous

      Sorry, this experiment has been run (Portugal) and decriminalizing and getting people treatment drops the usage rate by more than half in just a couple years and greatly reduces crime.

      Ignorance like yours is what keeps the level of addiction up as well as the crime rate. You should feel bad.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
    54. Re:Tor compromised by mdecerbo · · Score: 3, Informative

      > I'm still flabbergasted that he was using servers in the U.S.

      He may have used some servers in the U.S. but the server the FBI grabbed was overseas. From the complaint, page 14, item 22:

      In particular, the FBI has located in a certain foreign country the server used to host Silk Road's website (the "Silk Road Web Server"). Pursuant to a Mutual Legal Assistance Treaty request, an image of the Silk Road Web server was made on or about July 23, 2013, and produced thereafter to the FBI.

      There's a list of U.S. Mutual Legal Assistance Treaties here. Who's got a guess?

    55. Re:Tor compromised by ancientt · · Score: 5, Insightful

      He promoted the website using his real name attached to a gmail account with his real name as part of the address. They may not have found that out until they were ready to make a bigger case against him, but as I was reading the criminal complaint and saw that, I was dumbfounded that anyone could actually be that dense about security. Reading an older article, I see where he was asked if he was worried about law-enforcement agencies trying to track him down. He said "I have confidence in our security measures."

      --
      B) Eliminate all the stupid users. This is frowned upon by society.
    56. Re:Tor compromised by lgw · · Score: 3, Funny

      That's totally different! In capitalism, the government is corrupt because markets exist, but in Soviet Russia the markets exist because government is corrupt.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    57. Re:Tor compromised by rhazz · · Score: 3, Insightful

      Even after all these years I find it hard to accept that so many people have a problem with people they don't even know doing things they never would have heard about had it not been for the theft and abuse of their own rights and money. Strange world we live in...

      Except the site isn't just about drugs - one of the linked articles indicates the site was also used to advertise "murder for hire" services. I think that is a very significant line being crossed.

    58. Re:Tor compromised by Synerg1y · · Score: 2

      be careful in saying that, LEOs are trained to fabricate stories to mask how they actually work.

    59. Re:Tor compromised by ProzacPatient · · Score: 5, Funny

      One alternative would be to buy a car wash

    60. Re:Tor compromised by TheCarp · · Score: 2

      Yes and no. There are easy solutions in terms of....its easy to stop making it worst.

      The problem, I think, comes down to problem definition. What is the original problem? Yes, there are people who will use drugs to the exclusivity of other activities, to the exclusivity of responsibilities. There are drug users, there are acute abusers, and there are people who don't even have a drug of choice, their choice is fucked up whenever possible. Shit, when I was a landlord, I lived with a couple of different kinds to varying degrees of problem. (of whom I was not the first to give the boot from an apartment)

      I think the problem really is in the logic chain between some people have problems with drugs, and even that many problem causing people use drugs, into drugs being the problem. I don't think drug use really, in and of itself, indicates major problems. How many people do you know that have a few beers after work? Yet none of us can deny there are people who wake up drinking, still drunk from the night before, and are determined to spend the rest of their waking hours in a stupor.

      I honestly think that sort of out of control use is more symptom than original problem. Its not just a bad habbit, people choose their habbits because in some way, on some level, it is what works best for them that they know. That is a deep personal issue that goes beyond drugs.

      I mean krockodil says it all. When getting fucked up is so important to you as a lifestyle that cooking up dirty substances to inject doesn't just look like a good idea, but is a habbit that you get into long enough to destroy your limbs.... how do you restrict access to a person that determined? How do you look at that and say the drug is the problem. The drug didn't do that on its own. Plenty of users stick where they started or wander only a little. Plenty never get into IV use at all (the majority don't) so its really not the drugs, these people have been broken in some way.

      Honestly I bring up the gay thing because... many of these drugs make me cringe. Heroin? You mean nausea and intense itching, all for....a strong opiate bliss high? It doesn't even appeal to me and I have had opiates, they feel great. Fucking amazing. Yet, I still have no desire to do them. I imagine most people reading this feel that way too.

      This idea that there will be an epidemic of this drug or that if its legal, I think, are unfounded because they forget that people are not the same and most of us, have no problem either not becoming addicts, or keeping our addictions minor and controlled.... and even the so called "best" drugs don't appeal to everyone and don't even feel good to everyone. I know lots of people who refuse to smoke pot because they don't enjoy the feeling it gives them.

      Shit I have tried coke a couple of times (yes, because of a girl whose pants I was trying to get in). It felt ok, I guess. I mean, it worked, it just, didn't do that much for me. I could see how people could want to do it, hell I could see how people would want to do it at work; just like that old commercial. However, It wasn't the feeling that my brain craves. I have had several offers since then, turned down every one.

      Only drug I can say I stuck with over the years is pot. I still have a drink or two...a month (though that may go up with a mead brewing )...even that stopped being fun after a while (and a few visits to the porcelain god).

      Though in fairness, I really did enjoy GHB and would probably choose to do that again in lieu of drinking if it was available. The high is very similar to alcohol but less of the toxic effects, and less mentally clouded....and its out of your system in all of 45 minutes to an hour tops. Though, I couldn't see doing it often (and I think the old bodybuilding study is likely bunk)

      Actually there was a doctor a while back who was advocating using benzos instead of alcohol. The idea being you could dress up drinks around them like alcohol, get smashed and party.... then take another drug (I forget which) that counteracts the effect and bang.... sober and ready to drive. BTW in my experience, doctors like to PAR-TAY

      --
      "I opened my eyes, and everything went dark again"
  2. Billion ... with a B by Wh1t3Rabbit2084 · · Score: 3, Funny

    So this begs the question - Are we winning the war on drugs yet?

    1. Re:Billion ... with a B by TheP4st · · Score: 2

      No it does not beg the question "Are we winning the war on drugs yet?". The war on drugs cannot be won as long as there exist people creating demand for illicit products since these very same people will find a way to obtain it. The only way to win that war is by exterminating humanity as a species and that would be the definitive Pyrrhic victory.

      --
      "I have downloaded hundreds and hundreds of records, why would I care if somebody downloads ours?" Robin Pecknold
    2. Re:Billion ... with a B by Richy_T · · Score: 3, Interesting

      It depends. Do you make money from the prison industry?

    3. Re:Billion ... with a B by gandhi_2 · · Score: 5, Funny

      War on Drugs? Don't know.

      The War on Incorrect Usage of "Begs the Question" however, we are obviously losing.

    4. Re:Billion ... with a B by c++0xFF · · Score: 4, Funny

      It means the same thing, for all intensive purposes.

    5. Re:Billion ... with a B by demonlapin · · Score: 2

      That was really fucking stupid.

    6. Re:Billion ... with a B by CaseCrash · · Score: 3, Funny

      Irregardless, that war's been lost for a while.

      --
      No, that link you posted to a web comic we've all seen a hundred times is not "obligatory."
    7. Re:Billion ... with a B by bunglebungle · · Score: 2

      Don't you mean "loosing"?

    8. Re:Billion ... with a B by h4rr4r · · Score: 2

      Or to make the drugs legal thus ending the War.

    9. Re:Billion ... with a B by NoImNotNineVolt · · Score: 2

      Begging the question is an informal fallacy similar to circular reasoning.

      In this instance, there is nothing circular. There is the question, "are we winning the war on drugs yet?" There is the answer, "no, silk road does big business." But there is no circular reasoning (i.e. "we know silk road does big business because we are not winning the war on drugs."), not even in the implicit sense (begging the question is a form of circular reasoning where one of the claims (one that would make the circular reasoning more apparent), is not explicitly stated). We know silk road does big business because a large sum of money was seized in this bust. This claim is totally independent of our success in the war on drugs.

      "Begged" in this context has a very specific meaning. One that doesn't apply in this situation. The question is raised. The question ought to be asked. The question springs to mind. The question follows. The question is not, however, begged. The etymology of the expression "begging the question" might shed some light on this issue. Begging the question, or petitio principii in the original Latin, means literally "assuming the premise" or "assuming the original point". In this context, "begging" is a reference to the "beginning" or basis of an argument. It is not synonymous with "requesting" or "asking for" or "demanding".

      I'm sure this response is inaccurate in some way(s), and a true logician or philosopher will shit all over it. It's been over a decade since I last sat through a philosophy class. My previous post, however, was half-troll. "Begs the question" is so frequently misused today that there's really no point in correcting people. Really, there's little need for English vernacular to discriminate between begging the question and other forms of circular reasoning. I'm confident that as language evolves, "circular reasoning" will be "circular reasoning", and "begging the question" will be synonymous with "raising the question".

      --
      Chuuch. Preach. Tabernacle.
    10. Re:Billion ... with a B by idontgno · · Score: 4, Funny

      Nonsense, it's lunchtime at the shoreside campground at the dolphin sanctuary.

      "Food, for all in tents, and porpoises!"

      --
      Welcome to the Panopticon. Used to be a prison, now it's your home.
    11. Re:Billion ... with a B by TeknoHog · · Score: 2

      For all intestinal purposes, this thread makes me [sic]

      --
      Escher was the first MC and Giger invented the HR department.
  3. Didn't expect this... by SgtKeeling · · Score: 5, Interesting

    I just finished reading Gwern's guide to the Silk Road the other evening. If you weren't familiar with the goods for sale, or how it worked, this is a great article: http://www.gwern.net/Silk%20Road

  4. N$A now player in US domestic war on drugs by Anonymous Coward · · Score: 2, Insightful

    But they only spy on foreign terrists. And blacks.

  5. Might not be via TOR by EMG+at+MU · · Score: 4, Insightful

    This guy had to convert some of the bitcoin into real $ at some point, he had to eat and live somewhere right? Money laundering investigations might have been the vector through which he was compromised instead of a computer based trace.

    1. Re:Might not be via TOR by stewsters · · Score: 4, Insightful

      At least, that's what the "Parallel Construction" will say. Remember that TOR was released by the NSA. Perhaps it was released because they believed that only they had enough of a surveillance budget to monitor all the messages in route.

    2. Re:Might not be via TOR by Anonymous Coward · · Score: 3, Interesting

      Tor was released by the Navy.

      DPR was caught because he acted foolishly. See this excellent summary of the technically relevant parts of the criminal complaint. Thanks to YesIAmAScript for submitting the link.

      DPR did nearly everything wrong, mixing his IRL and hidden identities.

  6. Re:HOW?? by i+kan+reed · · Score: 5, Insightful

    Or more specifically, monitoring known(or complicit) tor entry nodes, looking for quantity of activity corresponding to activity by roberts, back tracking to the origin IP address, getting a warrant for a full-on-monitoring of that address, verifying their target, then going for a bust.

    Encryption and anonymyzing technology only works in as much as no one with any resources actively wants to figure out who you are. You might be able to hide your message, but you'll never hide your existence.

  7. Re:HOW?? by Anonymous Coward · · Score: 5, Insightful

    Yup. NSA -> FBI -> Parallel Construction Filter -> Arrest.

    Tor was not designed to protect against an adversary that has a global view of all traffic.

  8. Got nailed by USING Silk Road, not RUNNING it by Anonymous Coward · · Score: 4, Informative

    According to the complaint, they tracked him by intercepting fake id's he sent to his actual home address. Whether they breached TOR and just set him up, or just hit the stupid mistake of a lifetime by him using his actual address I doubt we will ever know. In any case, they traced things back to him in the end it seems.

  9. Re:Long Overdue by Anonymous Coward · · Score: 3, Informative

    The only surprise here is why this arrest and seizure took so long. I hope all these evildoers and drug pushers realize now that they can't hide behind anonymity and the authorities can prosecute and punish these dastardly bastards.

    Congrats to the FBI, DEA, and government for taking this hooligan down.

    Sounds like you need a mushroom session.

  10. Re:Long Overdue by Anonymous Coward · · Score: 2, Insightful

    I hope all these evildoers and drug pushers

    capitalism is evil. selling a product to a willing and interested buyer is evil.

    "Drug dealers don’t really sell drugs. Drug dealers offer drugs. I’m 30 years old. Ain’t nobody ever sold me drugs. Ain’t nobody ever sold nobody in this room some drugs. Was you ever in your life not thinking about getting high and somebody sold you some fucking drugs. Hell, no!

    Drug dealers offer, “Hey man, You want some smoke? You want some smoke?” If you say “no,” that’s it. Now Jehovah’s Witnesses on the other hand. Shit. Yo man, drug dealers don’t sell drugs. Drugs sell themselves. It’s crack. It’s not an encyclopedia. It’s not a fucking vacuum cleaner. You don’t really gotta try to sell crack, OK? I’ve never heard a crack dealer go, “Man, how am I going to get rid of all this crack? It’s just piled up in my house.”"
    - Chris Rock on drugs

  11. Re:strange summary FTA by Anonymous Coward · · Score: 5, Funny

    They didn't. They used their backdoor.

  12. So how long... by Em+Adespoton · · Score: 5, Funny

    So how long will it be before the Silk Road is back up and running under the management of the Dread Pirate Roberts? I presume he had a cabin boy prior to being arrested... or was that how he got nabbed?

    1. Re:So how long... by bobbied · · Score: 2

      Inconceivable!

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  13. Expect to see bitcoin lose half its value by Anonymous Coward · · Score: 4, Insightful

    It's an open secret that Silk Road was THE primary driver of demand for bitcoin in the beginning. Adoption by the Silk Road transformed bitcoin from a technical curiosity to a real currency backed by a valuable physical commodity (drugs).

    Bitcoin has a life of its own now. Even Wall Street is involved. But without Silk Road, 99% of slashdot would have never heard of bitcoin. And the end of Silk Road is certain to impact bitcoin in a big way, even today.

    1. Re:Expect to see bitcoin lose half its value by Ultra64 · · Score: 2

      Expect to see bitcoin lose half its value

      Sweet. When that happens it will be time to buy.

  14. Re:HOW?? by Anonymous Coward · · Score: 3, Insightful

    Or more specifically, monitoring known(or complicit) tor entry nodes, looking for quantity of activity corresponding to activity by roberts, back tracking to the origin IP address, getting a warrant for a full-on-monitoring of that address, verifying their target, then going for a bust.

    Encryption and anonymyzing technology only works in as much as no one with any resources actively wants to figure out who you are. You might be able to hide your message, but you'll never hide your existence.

    You had me sold on this theory, right up until you said "warrant".

    Then I knew it was bullshit.

    Like our government feels the need to recognize the legal process anymore.

  15. Ya, Sure. by fahrbot-bot · · Score: 4, Funny

    Everyone knows the real Dread Pirate Roberts has been retired +15 years in Patagonia ... But, of course, no one would care about arresting the Dread Pirate Ulbricht.

    /redundant

    --
    It must have been something you assimilated. . . .
  16. Re:There goes the value of Bitcoin. by thevirtualcat · · Score: 2

    It's an excellent opportunity to see what happens when 26,000 BTC suddenly vanish from existence.

  17. Re:HOW?? by Dunbal · · Score: 2

    Yeah it's only the metadata. Keep telling yourself that so that you believe it.

    --
    Seven puppies were harmed during the making of this post.
  18. Re:Long Overdue by Tokolosh · · Score: 3, Insightful

    The object of this Essay is to assert one very simple principle, as entitled to govern absolutely the dealings of society with the individual in the way of compulsion and control, whether the means used be physical force in the form of legal penalties, or the moral coercion of public opinion. That principle is, that the sole end for which mankind are warranted, individually or collectively, in interfering with the liberty of action of any of their number, is self-protection. That the only purpose for which power can be rightfully exercised over any member of a civilized community, against his will, is to prevent harm to others. His own good, either physical or moral, is not sufficient warrant. He cannot rightfully be compelled to do or forbear because it will be better for him to do so, because it will make him happier, because, in the opinion of others, to do so would be wise, or even right... The only part of the conduct of anyone, for which he is amenable to society, is that which concerns others. In the part which merely concerns himself, his independence is, of right, absolute. Over himself, over his own body and mind, the individual is sovereign.

    — John Stuart Mill,

    --
    Prove anything by multiplying Huge Number times Tiny Number
  19. Re:HOW?? by Rinikusu · · Score: 2

    I'd like to see how he implemented his back-end. Did he rely upon tor's anonymity and get lazy in the private messaging system? Were the logs/messages unencrypted and left in RAM? The new methods of catching computer crooks basically entail that the FBI sends in an IT team and nothing is touched or powered off (meaning mounted encrypted drives are live and they can run through them at will, etc).

    Also, I remember reading an article by Schneier about the possibility for a well-funded attacker to effectively add tons of nodes, exit and internal, and then DDOS the non-controlled nodes to shape traffic in a manner where a good majority of the packets flow throw their own nodes, enabling them to track and compromise users and end service locations. We know the US .gov can fund an operation that large...

    Just goes back to the old saying: when it comes to gang warfare, Uncle Sam has the biggest gang of them all...

    --
    If you were me, you'd be good lookin'. - six string samurai
  20. How he was caught. by YesIAmAScript · · Score: 3, Informative

    https://medium.com/p/d48995e8eb5a

    I didn't write it.

    Link to indictment contained within too.

    --
    http://lkml.org/lkml/2005/8/20/95
  21. $3.6 Million Bitcoin Seized by CanadianRealist · · Score: 3, Interesting

    Will the government try to redeem these bitcoins? Wouldn't that be like saying that they accept that bitcoin is valid? (Of course they could be hypocrites and say that bitcoin is completely invalid and redeem them anyways.)

    It would be neat if all the seized bitcoins could be identified and recorded as being worthless now.

    1. Re:$3.6 Million Bitcoin Seized by jonbryce · · Score: 2

      When they size 20kg of cocaine "with a street value of $3.6m"[1], they don't sell it, or at least they are not supposed to. They destroy it. Maybe they will treat bitcoin the same way?

      [1] I have no idea if that is the real street value of 20kg of cocaine. I made the number up, just like they do.

    2. Re:$3.6 Million Bitcoin Seized by tftp · · Score: 4, Insightful

      When they size 20kg of cocaine "with a street value of $3.6m"[1], they don't sell it, or at least they are not supposed to. They destroy it.

      - Officer Smith, please take this pile of drugs and make it disappear!
      - Sure, boss. You won't see this particular pile of drugs ever again.

  22. Re:Long Overdue by inking · · Score: 2

    Just because you disagree with him on the legality of drug trafficing doesn't mean that he is brainwashed.

  23. Re:HOW?? by i+kan+reed · · Score: 4, Informative

    You had me sold on this theory, right up until you said "warrant".

    Then I knew it was bullshit.

    Like our government feels the need to recognize the legal process anymore.

    You know that he's going to have a trial, right? And that the FBI won't want him to get off because there was no warrant for the evidence the prosecution presents in that trial, right? There might very well be unconstitutional monitoring in this process, but to bring it to court and get a conviction, a warrant is necessary paperwork.

  24. Re:There goes the value of Bitcoin. by Dunbal · · Score: 2

    Vanish? I'm sure they'll be exchanged for cash on an exchange, and the cash will be kept by the Feds and spent as they please. Because the law says that any cash they seize when there is suspicion (not proof - suspicion!) of drugs/money laundering is theirs to do with as they please.

    --
    Seven puppies were harmed during the making of this post.
  25. Re:HOW?? by Anonymous Coward · · Score: 3, Informative

    No. http://www1.icsi.berkeley.edu/~nweaver/UlbrichtCriminalComplaint.pdf has more info. DPR got extremely sloppy with keeping his identities separate. The Tor part worked fine.

  26. Re:HOW?? by jandrese · · Score: 4, Informative

    It didn't stop them from abusing the crap out of the law when they got Kim Dotcom. That said, Kim might walk because there was so much prosecutorial misconduct.

    --

    I read the internet for the articles.
  27. Re:Long Overdue by doconnor · · Score: 4, Informative

    Using the word "evildoers" in a context other then a Saturday morning cartoon means that he is brainwashed.

  28. Or perhaps Bill Gates? by RevWaldo · · Score: 2, Funny

    Steve Ballmer: It is very strange. I have been in the CEO business so long, now that it's over, I don't know what to do with the rest of my life.

    Ross William Ulbricht: Have you ever considered black marketing? You'd make a wonderful Dread Pirate Roberts.

    .

  29. Re:HOW?? by mattsqz · · Score: 2

    that was across borders, sir. US law doesnt really apply outside the US, and im sure our govt gives no fucks, zero, about other nation's laws.

  30. Re:HOW?? by vivaoporto · · Score: 4, Insightful
    Actually, considering what was revealed on a previous article (DEA Program "More Troubling" Than NSA)

    "The undated documents show that federal agents are trained to "recreate" the investigative trail to effectively cover up where the information originated"

    it is more likely than not that a very clear paper trail will be shown that it all happened by good old fashioned police investigation as you described.

    It doesn't mean it was not obtained with an illicit program to begin with, only that they were able to cross the "t"s an dot the "i"s later.

  31. Re:Well... by circletimessquare · · Score: 3, Insightful

    i'm attacking the notion that because the "war" goes on forever it is invalid. you also need to take the trash out every thursday. is that an argument to end "the war on trash"? no, some functions of society are just maintenance functions that never end

    i'm not defending us drug policy, it's poor tactics. and some substances need to be legal. but i'm attacking the notion that just because there's demand and supply for something, therefore it needs to be accepted

    example: something like meth has a lot of supply and demand. meth also creates horrible costs to individuals and society. such that attacking the meth supply and demand chain has direct costs, and secondary costs. but if meth use is minimized to some extent because of the "war", that pays dividends in the form of less overall costs for individuals and society in regards to the harm that meth does. such that fighting meth is worth it

    it's a case-by-case basis. just because marijuana is legalized (and should be legalized) doesn't mean all drugs should be. each substance has to be evaluated individually

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  32. Re:HOW?? by tnk1 · · Score: 3, Insightful

    The US Government cares, but only so far as they need to make sure they get reciprocal privileges in that country. Obviously, US power makes it easier to get things done without having to horse trade for it, but ultimately, it only works if there is not too much abuse.

  33. RTFA! And Read the complaint! by MadCow-ard · · Score: 3, Informative

    It sure doesn't read like TOR was compromised. It was the Gmail account DPR left when first advertising SR on a shrooms site. The FBI (if they aren't just covering for the NSA) do seem to have caught DPR through old fashioned sleuth work. Yes, they managed to copy a server but they still couldn't get the names out of it, only link the messages and transaction dates to other events they tracked down to DPR after tentatively identifying him using Gmail, Google+ and LinkedIn. Ouch.

  34. Re:HOW?? by LifesABeach · · Score: 5, Interesting

    I find myself ambivalent to Silk Road actions when I think of the losses to over 30 million American home owners of their homes to outside factors that they had no control over. That those involved in attacking the U.S.Economy got less regulation, and squandered, then profited from it. I believe the "Robo Singers" should be in prison, with restituion for damages caused. And yet, they walk more free than everyone else.

  35. It's not far-fetched at all... by sirwired · · Score: 3, Informative

    Every incoming (or, I guess, in the case of Canada, outgoing) mail parcel goes through an x-ray (I'm not saying they actually pay a lot of attention to each one; it's kind of luck-of-the-draw.) If the inspector sees a package containing a bunch of plastic cards and something that looks like a passport, they are naturally going to wonder what that's doing being sent via international mail. It's not as if you can accidentally leave your passport at home when leaving the country.

    Because customs facilities are on international borders, they don't need anything but the barest suspicion to take a peek in your package, certainly not a warrant.

    But yeah, hosting SR in SanFran was not very bright. Of course, given that what he was doing would get him arrested in pretty much every country in the land, there's not really any good location for the servers. Even in Russia, you would have needed some pretty good underworld connections to keep those servers out of govt. hands.

  36. Solution - End the "war on drugs" by ErichTheRed · · Score: 2

    An interesting side point that comes out of all this is that services like Silk Road wouldn't exist if there wasn't a market for them.

    I'm about as far from Libertarian as you can get, but one thing I do think they have right is the idea that the "war on drugs" should be stopped. It can't be won, that has been proven. Every single defense that's put up to stop drug trafficking is worked around shortly after it comes on the scene. Drug cartels basically run large parts of Mexico and Central America. US citizens get tossed in prison for drug use and sales, which basically turns them into a wasted resource (good luck getting a normal job with a prison record) and this ends up costing more in the long run.

    Prohibition basically gave birth to organized crime, simply because enough of the population wanted to keep drinking alcohol and was willing to break the law. As a result, we saw what we see now with other drugs -- the price of alcohol shot up, other ancillary crime increased, violent gangs brutally wiped each other out neighborhood by neighborhood in big cities. With drugs it's the same thing -- I have no desire to use drugs, but there are plenty of others who do. And they'll do whatever it takes to do so, and pay whatever street price is prevalent. Econ 101 -- inelastic demand (more like infinite demand) in the face of constrained supply means prices keep going up no matter what you do.

    I believe drug use is a completely victimless crime -- it's the other stuff that happens alongside it (stealing to pay for expensive drugs, drunk/high driving, etc.). If everything were readily available, sold in safe doses and taxed appropriately (like tobacco and alcohol,) prices would be low and people wouldn't have to steal to pay for their habits.

    The other thing to consider is that we're rapidly heading towards a sci-fi dystopian future where human labor is no longer as important as it is now. When the unemployment rate shoots up to 85%, wouldn't you rather fill their free time with something other than random crime sprees? Yes, it sounds very "Brave New World"-ish, but it's rapidly coming true. Unless society just drops the use of labor and money as measures of productivity, which will never happen, this is the inevitable future!

  37. Wow by m.dillon · · Score: 3, Interesting

    Wow, if people read the criminal indictment there's one, possibly even two murder-for-hires in the wings linked to (allegedly posted by / conversation with) this guy.

    -Matt

  38. DEA & parallel construction? by Valdrax · · Score: 5, Insightful

    Wait, so after all the NSA bullshit, he was caught by Canada? Oh, the irony.

    Welllll, maybe...

    Do you remember the recent stories about the DEA and "parallel construction," where the DEA was getting phone records from the NSA and then using them to identify suspects from which they could reverse engineer a false "lead" to let the police just happen to find other incriminating evidence to build a case on?

    I'm not saying that's clearly what happened here, but as others have pointed out, it's a distinct possibility given that drugs are involved.

    --
    If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").
  39. Re:Long Overdue by clonehappy · · Score: 2

    Yes, "drug pushers". They "pushed" TOR onto everyone's computer. They "pushed" everyone's browser to the onion URL that points to Silk Road. Then they "pushed" everyone to buy bitcoins and "pushed" them to use those bitcoins to buy contraband. Yep, "pushers" indeed!

  40. Re:HOW?? by noh8rz10 · · Score: 3, Insightful

    I'm not going to cry about criminals going to jail. it's people like this that help the govt justify the NSA, etc. they need all these tools because people who use encryption / tor / bitcoin / etc are criminals! thanks silk road for ruining it for the rest of us.

    it's like the shoe bomber guy who gave the gov't authority to tell me to take off my shoes, and the underwear bomber guy who convinced the govt to fondle my nuts every time I went through security (although secretly they always wanted to do that). Now because of the boston bombers NSA will be collating my online profile to look for "suspicious activities" that may make me a potential terrorist.

    I think in 1984 the Goldman terrorist guy actually didn't exist, and was just a gov't front to justify their behaviors and scare people. maybe that's what's going on here?

  41. Re:HOW?? by noh8rz10 · · Score: 2

    i dont' understand your point?

  42. Re:Forgeries mailed to suspect at location of serv by Anonymous Coward · · Score: 2, Interesting

    Obviously. And of course he had to have fake IDs to show godaddy to rent a server. Nobody can get servers without showing ID these days, I hear it's just like renting a car.

    My inner paranoia says the feds broke tor and knew who he was but couldn't prove it with real evidence so they sent some guy to canada and mailed a package of fake IDs with an "open this box please" sticker on it for the canadian mailman (and/or us customs, if the canadians were asleep) to find.

  43. Value of bitcoins by halcyon1234 · · Score: 5, Funny

    Article: 11:36am: US Government seizes $3.6 million worth of bitcoins

    Update, 11:45am: US Government seizes $1.75 million worth of bitcoins

    Update, 12:03pm: US Government seizes $8.3 million worth of bitcoins

    Update, 12:54pm: US Government seizes $766 thousand worth of bitcoins

    Update, 3:27pm: US Government seizes Eight Dollars worth of bitcoins

    Update, 5:55pm: US Government seizes $15 million worth of bitcoins

  44. Re:HOW?? by PRMan · · Score: 4, Informative

    Look up "Parallel Construction". Regardless of how much they originally had on him through NSA channels or whatever, I assure they have a clean paper trail with enough to take him to trial for stuff he did after they already had warranted phone taps and e-mail, etc.

    --
    Peter predicted that you would "deliberately forget" creation 2000 years ago...
  45. IANAL, but here is why you won't get your coins. by Valdrax · · Score: 4, Informative

    The US govt seized my bitcoins which silk road kept for me. I am not a US citizen. I have not committed a crime involving us soil or citizens. Will I be able to reclaim my bitcoins? I was actually keeping them there as a safe haven.

    You will probably not be able to get your coins back. They have been seized via civil forfeiture. To get your coins back, you will need to establish proof that you are the owner of the coins and that you qualify for an "innocent owner" defense under 18 USC 983(d). Specifically, you will need to show that you "(i) did not know of the conduct giving rise to forfeiture; or (ii) upon learning of the conduct giving rise to the forfeiture, did all that reasonably could be expected under the circumstances to terminate such use of the property."

    So, can you show that you did not know that drugs and other illicit materials were being traded on Silk Road? If not, can you show that you tried to get your coins out as soon as you learned this was the case? If not, then goodbye money. You shouldn't have knowingly comingled funds with criminals.

    Beyond the unlikelihood of successful recovery, I would point out that attempting to claim your coins may put you at risk of criminal charges for your own actions. I note that you specifically mention that you "have not committed a crime involving us soil or citizens" (emphasis added). If you have used your coins to participate in a crime elsewhere or have participated in activity that is legal elsewhere but criminal in the US (e.g. trade in controlled substances), you may run afoul of money laundering charges (18 USC 1956-1957) and RICO (18 USC 1961-1968).

    I highly recommend you consult a real attorney first. (I am not one!) Be honest with them; you have attorney-client privilege in the US and in many other countries, and they cannot give good legal advice without all the facts. Don't be reckless, though. Since you're a foreign national, any calls to the US will most likely be monitored according to recent news, and the DEA is accused of using information they can't legally obtain to fake up a "clean" evidence trail that can't be constitutionally impeached. If possible, you may wish to seek an attorney local to your country who works with US law internationally.

    Final note: I am not a lawyer. This should not be construed as legal advice, and I may be quite wrong on several aspects of the above. If you are in serious trouble, consult a real attorney and not Slashdot.

    --
    If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").
  46. Re:HOW?? by MightyYar · · Score: 3, Interesting

    You perspective is common, but I think flawed. We need to have law and order in a civil society, even when there are great injustices also taking place. As a thought experiment, imagine that you are living in South prior to the Civil War. Women can't vote and people are actually enslaved right in your very own town. Now you find out that a guy in town is passing off counterfeit money. Do you arrest and prosecute the guy, or do you let him go because what he is doing is a trivial crime because one of the most unspeakably horrible crimes that man has ever perpetuated upon man is occurring at the same time?

    Anyway, my 2 cents...

    --
    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  47. Re:Well... by ErichTheRed · · Score: 2

    See my other comment -- your argument holds water only if we allow the current black market to continue with the criminal penalties removed.

    If someone were able to walk into a store and buy absolutely pure meth (for example) the following costs disappear:
    - Many of the health costs (ingesting a pure substance synthesized by a drug company vs. one contaminated with very toxic solvents)
    - Many of the criminal costs -- (1) it would be cheaper, meaning you might not have to steal to feed your habit, (2) transactions would be in the open, not controlled by organized crime or random drug dealers, (3) you wouldn't have to waste resources throwing people in jail.
    - Random houses out in the country getting blown up because of a poor understanding of organic solvent extraction chemistry

    Yes, you're going to have other consequences, but they're all better than what we have now. And, they can be counteracted. There are plenty of rehab facilities for people who want to get clean, and funding those beats funding prisons to warehouse people that will just keep coming back.

    Treat every drug like alcohol and tobacco -- regulate it, tax it, and use the proceeds to clean up the rest of the problems associated with its use. We already fund methadone clinics for heroin addicts -- that's not just for fun; it's a cost we've chosen to take on in exchange for more controlled addicts and a lower rate of IV drug-borne diseases.

  48. Re:HOW?? by NettiWelho · · Score: 4, Informative
    SR shutdown fallout discussion. (self.SilkRoad)

    Now, onto how he got caught... An agent involved in the investigation ("Agent-1"), found the first few references to SR on the internet from somebody only identified as "altoid", attempting to promote the site in its beginning days, in January of 2011.
    In October of the same year, a user also going by the name of "altoid" made a posting on Bitcoin Talk titled "a venture backed Bitcoin startup company", which directed interested users to "rossulbricht at gmail dot com".
    That email address is what led to DPR's downfall.
    ---
    After identifying "altoid", they started connecting the "DPR" identity to Ulbricht pretty quickly.
    Ulbricht's Google+ page and YouTube profile both make multiple references to the a website dubbed the "Mises Institute". DPR's signature on the SR forums contained a link to the Mises Institute.
    DPR cited the "Austrian Economic theory" along with the works of Ludwig von Mises and Murray Rothbard, all of which are closesly associated with the Mises Institute.
    Server logs show that someone logged onto the SR administration panel from San Fransisco around the same time that Ulbricht was staying in San Fransisco.
    Multiple fake IDs were intercepted by U.S. Customs & Border Patrol while on their way to an address which Ulbricht was living at the time.
    These IDs all carried photos of Ulbricht but had false names and details. This was around the same time that DPR stated in a message that he was acquiring some fake IDs to buy new servers.
    When questioned by Homeland Security about the fake IDs, he refused to answer any questions but then stated that anyone could purchase such things using "Silk Road" and "Tor".
    The address which Ulbricht was staying at was being rented in cash and he was living with housemates who knew him under a name which corresponded with one of the fake IDs.
    He posted on StackOverflow using his real name, inquiring about how to use curl/PHP to grab things off Tor, before quickly changing the name to "frosty" (with a fake email: frosty@frosty.com)

    Thought my money is on NSA and parallel construction.

  49. Re:HOW?? by wordsnyc · · Score: 4, Interesting

    One of the more significant recent revelations is that the govt uses "parallel construction" in building a cae. If possibly illegal surveillance is used to catch you, they -- after the fact -- construct a legal scenario for how they MIGHT have caught you that will pass muster w/ a judge.

    --
    Sent from the iPad I found in your car.
  50. Re:HOW?? by kju · · Score: 2

    This is what they claim. You might remember from the NSA documents that it appears standard procedure to cover the source of information by creating a plausible lie.

    Of course they would never tell if they have enough metadata and surveillance to identify Tor users and hidden sites. It would be in their interest to keep us using a network they can penetrate.

  51. Silk Road customers are next! by neiras · · Score: 2

    If the feds have Silk Road's wallets, they now know every bitcoin address they ever used - as well as every bitcoin address used by Silk Road's clients.

    Since most Bitcoin users are dumb and don't use shared wallets, it should be simple to follow the blockchain back to people who bought drugs. Everyone has to cash into or out of of Bitcoin somewhere, so it's a matter of looking for transactions from known exchanges, subpoenaing them, getting banking information and fingering the buyers.

    Silk Road should really have functioned as a massive shared wallet with no records.

    I wonder what Atlantis knew when they shut down?

  52. Re:HOW?? by Hatta · · Score: 3, Interesting

    If he's an ally in the fight against slavery, you're damned right you don't do anything about it. And in this case, what we're talking about is a modern equivalent to the underground railroad. DPR enabled the oppressed to live freer at great personal risk. That's worthy of respect.

    --
    Give me Classic Slashdot or give me death!
  53. Re:Who cares? by gandhi_2 · · Score: 2

    that isn't a grammatical error. we aren't talking about mis-conjugating a verb.

    widespread misuse of words and phrases reduces the value of a language. if we allow "taco" to become "divine right of kings" or ignore things like "for all intensive purposes" we are basically saying that all words and phrases are allowed to equal all meanings and definitions. the result then is that no words or phrases carry any meaning. this is the complete destruction of the value of the language.

    lazy capitalizations? poor spelling? grammatical errors? none of those actually attack the very basis for the purpose of language.

  54. Bicycles are currency? by raymorris · · Score: 2

    > So if they exchange Btc for USD, they are legitimizing Bitcoin as a currency.

    Law enforcement routinely sells bicycles that have been abandoned or stolen. Does that make bicycles currency?
    Selling bitcoins == selling bicycles. Selling something doesn't turn it into currency. Accepting it as payment would be using it for currency.
    As soon as you can pay fines and government fees in bitcoin, that's when the government will be treating bitcoin as currency.

  55. Re:HOW?? by MightyYar · · Score: 2

    Really? I'm having trouble swallowing the concept of abandoning law and order in the face of evil. Society becomes impossible, IMHO.

    --
    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  56. Re:HOW?? by Hatta · · Score: 5, Insightful

    What value does law and order have to the slave? Law and order is nothing more than a tool, and when that tool is wielded by evil, it serves evil. A society where injustice is enforced by the government and cheered on by patriots is no society that is worth having.

    Think about it, if you were the slave in your scenario, would you really care that an abolitionist had counterfeited currency? Hell no! If you thought that counterfeiting would lead to your freedom, I bet you would run the presses yourself.

    --
    Give me Classic Slashdot or give me death!
  57. there's also the murder-for-hire problem by ffflala · · Score: 2
    According to the criminal complaint, Ulbricht

    On or about March 29, 2013, ROSS WILLIAM ULBRICHT, a/k/a "Dread Pirate Roberts," a/k/a "DPR," a/k/a "Silk Road," the defendant, in connection with operating the Silk Road website, solicited a Silk Road user to execute a murder-for-hire of another Silk Road user, who was threatening to release the identities of thousands of users of the site.

    It's interesting that they're not charging him for the murder-for-hire scheme; the criminal complaint describes it in lurid detail. http://www1.icsi.berkeley.edu/~nweaver/UlbrichtCriminalComplaint.pdf (The detail starts at point #31/page 21.) Ulbricht allegedly tried to pay ~$150k to have a supposed blackmailer assassinated. He claims to have had an earlier "clean hit" done for around $80k.

    Contrast the murder-for-hire move with the following (allegedly) hypocritical drivel from his LinkedIn profile:

    I want to use economic theory as a means to abolish the use of coercion and agression amongst mankind. Just as slavery has been abolished most everywhere, I believe violence, coercion and all forms of force by one person over another can come to an end. The most widespread and systemic use of force is amongst institutions and governments, so this is my current point of effort. The best way to change a government is to change the minds of the governed, however. To that end, I am creating an economic simulation to give people a first-hand experience of what it would be like to live in a world without the systemic use of force.

  58. Re:Who cares? by Frosty+Piss · · Score: 2

    Funny, but "could care less" is actually considered correct in the US (or at least it's still in dispute)

    When it is used incorrectly, it's considered incorrect, even in the US. There's no dispute about that.

    --
    If you want news from today, you have to come back tomorrow.
  59. Re:HOW?? by nospam007 · · Score: 3, Funny

    It's pure BS.
    Since the eighties, everybody knows that Roberts is not one man, but a series of individuals who periodically pass the name and reputation to a chosen successor. Everyone except the successor and the former Roberts is then released at a convenient port, and a new crew is hired. The former Roberts stays aboard as first mate, referring to his successor as "Captain Roberts", and thereby establishing the new Roberts' persona. After the crew is convinced, the former Roberts leaves the ship and retires on his earnings.

  60. Re:HOW?? by Hatta · · Score: 2

    My example wasn't from the slave's perspective

    Yes, those who preach law and order tend to be unable to empathize with the oppressed.

    For example, a slave that is currently lashed every night and raped by the master might love it if the counterfeiter ruins the master's day a little.

    Whether I'm a slave or not, I am completely in favor of the assassination of such a monster. Law and order is worthless if it allows atrocities to happen.

    --
    Give me Classic Slashdot or give me death!
  61. Re:HOW?? by Anonymous Coward · · Score: 2, Insightful

    Kim might also walk because of that little detail of him NOT BEING IN ANY WAY SHAPE OR FORM UNDER THEIR JURISDICTION.

    And if all he gets is to walk, but not compensated for the billions of dollars in losses he suffered by having his business stolen by jack booted thugs with no legal process whatsoever in effect, it'll be a gross miscarriage of justice.

    And no, he's not my favorite person. But if this kind of shit can happen to him just because he's not everyone's favorite person, then we may as well entirely give up on that whole rule of law concept entirely and stop splitting hairs about it.

  62. Re:HOW?? by CodeBuster · · Score: 4, Informative

    This guy, Ross Ulbricht, made a number of critical mistakes irrespective of his use of TOR. For example, he posted on the shroomery.org forums using the user name "altoid" and then again a few days later on bitcointalk.org with the same user name. The court documents aren't clear on whether or not he was using TOR at the time he made those posts or when or how he created those accounts in the first place. Apparently, these were some of the earliest public posts promoting what would ultimately become the Silk Road. Eight months after that, the "altoid" identity was used again on the bitcointalk forum to advertise for an "IT pro in the Bitcoin community" to hire for a job with a "venture backed Bitcoin startup company". This was critical because the email address for the job posting was rossulbricht at gmail. So this guy used his real email address (which contained his real name) posting as "altoid", the same account that had earlier promoted the Silk Road concept on both shroomery and bitcointalks: epic fail. . From there it was proverbial cake for the authorities to monitor his Google accounts and trace the IP address of his logins to an Internet cafe in San Francisco. They also found that he had an account on the Mises Institute website (an Austrian Economics organization) under Ross Ulbricht and the Silk Road website also linked to the Mises Institute website. Yet more evidence, albeit circumstantial, that Ulbricht was the one behind Silk Road. Game, Set and Match to the the 3 letter agencies and the USSS. Have a nice day.