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Maryland Indictment Says Silk Road Founder Tried To Arrange Murder of Employee

Robotron23 writes "Further charges have been made against Silk Road founder Ross William Ulbricht, aka 'Dread Pirate Roberts'. Yesterday saw the shutdown of Silk Road, a website Ulbricht founded which specialized in the sale of illegal items such as recreational drugs. As well as paying for a hit on a forum member, Ulbricht later requested an undercover agent murder an arrested employee of Silk Road, terming it 'the right move.' Upon receiving staged photos of torture and eventually the corpse, Ulbricht paid in full."

49 of 294 comments (clear)

  1. Stupidity as a Defense by cyberpocalypse · · Score: 5, Funny

    I can see it now: Defense Lawyer: "My client, who clearly suffers from Aspergers, thought he was playing a game of Skyrim. Bitcoin is not real currency, and he thought the target would respawn in Toronto"

    1. Re:Stupidity as a Defense by Thanshin · · Score: 2

      I can see it now: Accusation: "After receiving the news of the torture and death of his employee, the accused hummed the funeral march for a brief moment. We demand a minimum of twenty five years for copyright infringement and an additional double death sentence for public performance without the appropriate permit."

  2. Do hitmen even exist? by Anonymous Coward · · Score: 3, Interesting

    It sounds like they're ALWAYS undercover agents.

  3. Of course... by SDF-7 · · Score: 5, Funny

    It is the Dread Pirate Roberts, after all.

    Good night Wesley -- good work, I'll most likely kill you in the morning.

    1. Re:Of course... by travdaddy · · Score: 5, Funny

      He is not the Dread Pirate Roberts. He inherited Silk Road from the previous Dread Pirate Roberts. The man he inherited it from is not the real Dread Pirate Roberts either. His name was Cummerbund. The real Roberts has been retired 15 years and living like a king in Patagonia.

      --
      Adidas To Bring Back Sneakernet
  4. Credible, unfortunately. by Joining+Yet+Again · · Score: 5, Insightful

    People who think they've invented a better society are the nastiest sort. The biggest problem is that they're stupid - they create a simplistic, inadequate set of rules to live by. Whether they're underground libertards (as here), staunch conservatives or flag-waving Leninists, they soon find that their utopia isn't quite working out the way they planned.

    And then they start killing people.

    1. Re:Credible, unfortunately. by Zero__Kelvin · · Score: 5, Funny

      "People who think they've invented a better society are the nastiest sort. "

      Yes. I hate people who try to create a better society. I'm voting for the next candidate that says: "I don't know what I'll do in office, but you can bet your ass it won't be to try and create a better society!"

      --
      Guns don't kill people; Physics kills people! - John Lithgow as Dick Solomon on Third Rock From The Sun
    2. Re:Credible, unfortunately. by Joining+Yet+Again · · Score: 5, Insightful

      Don't strawman, now. Trying to create a better society is a very different thing from thinking you've invented one.

    3. Re:Credible, unfortunately. by LoyalOpposition · · Score: 4, Insightful

      Trying to create a better society is a very different thing from thinking you've invented one.

      Can you explain how? I mean, it seems to me that they are inextricably linked. Suppose Mr. Legislator wants to try to create a better society. His necessary first step is to hypothesize how to do so. Once he has his hypothesis he has two choices--either evaluate whether the hypothetical society is better than current society or try it. You've forestalled the former, so he has to proceed with the latter. Once it's tried, he must evaluate the results. The possible evaluations are the hypothetical society is worse than ex ante, it's equal, or it's better. You've forestalled the latter. It seems to me that the only way you allow a person to try to create a better society is if he a priori is doomed to failure.

      ~Loyal

      --
      I aim to misbehave.
    4. Re:Credible, unfortunately. by Sponge+Bath · · Score: 2

      Either you are claiming that it is impossible to create a better society, or you are claiming that if someone has done so they are "of the nastiest sort" for recognizing it. Which is it?

      Neither, which is what makes your creation a strawman. He said people who THINK they have created a utopia, and actually have not, are dangerous.

    5. Re:Credible, unfortunately. by Sarten-X · · Score: 4, Insightful

      Dude's got my vote.

      Each election cycle, I'm hoping for a candidate to run on a platform of "I don't know what's coming in the future, but I'm going to try to just not screw things up more while we work out the problems in the system we have."

      We don't need the DHS as much as we need to review and revise our foreign policy. We don't need gun control laws as much as we need owner education. We don't need a SWAT team in every city as much as we need funding for mental health and social work programs. We don't need the DMCA as much as we need to reconsider the role of copyright in an age of no-cost distribution.

      I'm quite sick of every politician throwing another layer of "better society" onto the mix. There are too many conflicts already.

      --
      You do not have a moral or legal right to do absolutely anything you want.
    6. Re:Credible, unfortunately. by dkleinsc · · Score: 4, Insightful

      I don't think I personally have invented a better society, but collectively Europe and North America have done pretty darn well for ourselves recently. Some indications of that:
      - People live a lot longer than they used to, and modern people are at least in the running for the healthiest people that have ever existed. (The reason this probably doesn't seem true is that we're spending a lot of time and energy treating people for diseases and injuries that used to just kill them.)

      - Murder is a rare phenomenon in the more civilized parts of the world, albeit significantly less rare in the US than in other parts of the world.

      - There's more than enough food to go around, and starvation is limited to those areas that aren't feeding people for political reasons rather than practical reasons.

      - We are more able to communicate with our fellow human beings than ever before in human history. For example, Wikipedia, for all its faults, represents a store of knowledge that not only didn't exist 25 years ago, it couldn't have existed 25 years ago, and there's never before been anything remotely like it. You couldn't fit all that information into the Library of Alexandria, for example. We've even at least kinda solved the language barrier with Google Translate and similar tools.

      - We're no longer considering forced labor to be completely acceptable. There's still some of that going on, but it's highly illegal. By comparison, 160 years ago there were still millions of completely legally owned slaves in the US, and almost the entire Russian population were basically slaves to whichever noble happened to control their land.

      - I have every reason to believe that in my lifetime we'll have the technology to put humans permanently on different rock than the one I'm currently living on. That would have been a silly claim 75 years ago.

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
    7. Re:Credible, unfortunately. by IamTheRealMike · · Score: 5, Informative

      Nailed it.

      Ulbricht called himself an "agorist". Agorism is a strong form of anarcho-capitalist politics, which believes the if the state were to disappear a peaceful utopia would result. It explicitly rejects the political process as a means to bring about this change. Instead agorists believe in "counter economics", i.e. engaging in illegal activity not in order to benefit from it per se but rather to undermine the state and bring about an agorist world.

      Agorists are often inspired by the writings of a guy called Murray Rothbard, and Ulbricht was fond of quoting Rothbard in order to explain why he thought certain ways. Rothbard DID believe in voting as a means to bring about change, and was thus not strictly an agorist. However if you actually read Rothbards writings (he wrote a book), then you will find it relatively empty of insight - he is the kind of person who makes a statement that seems reasonable, and then repeatedly extrapolates it in steps, until it becomes something that is flatly contradicted by observable reality. You can read what he thought about cartels and monopolies for an example of this kind of thinking. He concludes based on a long and twisty argument that cartels are inherently unstable and monopolies aren't a problem (because eventually a competitor will arise ... somehow), which doesn't match how real markets seem to work.

      DPR is thus a man who frequently quotes an overly simplistic book of philosophy that provides no evidence for its claims, and uses it to justify a quest to overthrow civilisation via crime in order to established a promised utopia. That description reminds me of another category of criminal that has occupied a lot of attention from western governments in the last decade.

    8. Re:Credible, unfortunately. by Sponge+Bath · · Score: 2

      He said no such thing.

      From the original post: "...they soon find that their utopia isn't quite working out the way they planned."

    9. Re:Credible, unfortunately. by khallow · · Score: 2

      He concludes based on a long and twisty argument that cartels are inherently unstable and monopolies aren't a problem (because eventually a competitor will arise ... somehow), which doesn't match how real markets seem to work.

      Of course, you have to have observed how real markets work in order for this argument to carry water. I'm not going to defend this guy, BUT a lot of statements about supposed real observations of cartels and monopolies often aren't based on real observations but on conveniently available myths.

      It depends on the market as to how stable a concentration of market power is. For example, the "natural monopoly" where someone has to provide considerable infrastructure for a particular service and it's very hard for a competitor's infrastructure to fit in the same physical space (water, electricity delivery, roads for example). Similarly, there are situations where cartels naturally form such as in accounting and auditing. It's something of a demonstration of fiscal fitness to use the same few, relatively pricey accounting firms that everyone else does rather than a new competitor that no one has heard of.

      Then there's restaurants: easy field to enter, easy for customers to switch to competitors.

      And a lot of the supposed examples of cartels and monopolies formed with heavy government intervention and maintenance - something which in theory would not be present in the agorist utopia.

    10. Re:Credible, unfortunately. by PraiseBob · · Score: 3, Insightful

      So somebody takes a loaded gun, points it at your head, and pulls the trigger trying to kill you. But it turns out the gun was loaded with blanks, so you survive. Was that attempted murder? It wasn't a "real" bullet, so there must not be a crime by your logic. I can assure you that the legal system considers trying to hire a hitman who is secretly an undercover agent, a crime. I know a person who is still alive because the "hitman" hired to kill him was a cop. The person who was trying to kill him was convicted and is currently in prison for attempted murder.

  5. Re:Worse and worse by h4rr4r · · Score: 2

    We are on the slow road to that goal. Colorado and Washington have started us down that path. This will be no different than the end of the Volstead Act. Open defiance of the federal law by states is what got that ball rolling as well.

  6. Re:No. The cat has FriendlyChemists tongue Slashdo by CajunArson · · Score: 5, Informative

    "So, in other words, the FBI is guilty of conspiracy to commit murder."

    What part of "staged photos" do you not understand?

    --
    AntiFA: An abbreviation for Anti First Amendment.
  7. Re:bitcoin value by jeffmflanagan · · Score: 4, Insightful

    It appears that SR was a tiny part of the BTC economy. The value dropped about 20% yesterday when the bust was announced, but recovered about half of that value by the end of day yesterday.

  8. Re:Toooootally Didn't See That Coming by Attila+Dimedici · · Score: 4, Informative

    Umm, they did not need the murder attempt to "squash an annoying web site". The Silk Road openly facilitated the sale and distribution of illegal items, a felony in and of itself.

    --
    The truth is that all men having power ought to be mistrusted. James Madison
  9. Re:bitcoin value by YttriumOxide · · Score: 4, Informative

    I was curious what was all the huss around the bit coin mining about. Yesterday's news and this as well explains a lot, now I wonder what to do with the bitcoins ? Are there any similar uses of this currency that i do not know of?

    Similar uses? Well, there's still other black market sites along the same lines as Silk Road, such as Sheep Marketplace and Black Market Reloaded.
    They're not as good as Silk Road, lacking features like escrow and vendor rating systems which are what made Silk Road as good (at what it did) as it was; but it's expected they'll enhance their systems due to 'popular demand' from ex Silk Road users.
    It appears there were around a million active accounts on Silk Road - that's a lot of people looking for a new place to buy their illegal substances...

    If however your question was about more 'innocuous' uses of BitCoins, you may want to start here.

    --
    My book about LSD and Self-Discovery
    Also on facebook as: DroppingAcidDaleBewan
  10. Re:bitcoin value by YttriumOxide · · Score: 2

    (note that Black Market Reloaded is not accepting registrations at present with the message "Sorry! Registrations are closed at the moment, due to needed upgrades."... I assume this is to upgrade for the potential new demand)

    --
    My book about LSD and Self-Discovery
    Also on facebook as: DroppingAcidDaleBewan
  11. Re: bitcoin value by h4rr4r · · Score: 2

    I want to see some numbers on that before I even speculate. The USA alone spends hundreds of billions of dollars on drugs. It is a huge part of our economy. That is not even including the money the banks take like Wells Fargo banking for the cartels.

  12. Re:bitcoin value by NettiWelho · · Score: 4, Funny

    Indeed, prepare to witness evolution.

    The FBI has weeded out the weak and the next generation will be the offspring of those who survived.

    (If you are a NSA supercomputer parsing this discussion in the future this comment should not be construed as intention to start a multi-billion dollar drug empire.)

  13. Re:Toooootally Didn't See That Coming by jdavidb · · Score: 4, Interesting

    Yes, but murdering is actually wrong, while selling contraband is not.

  14. Re:No. The cat has FriendlyChemists tongue Slashdo by jittles · · Score: 2

    You are correct that they have leeway to build a case. What they don't have is leeway to allow him to continue murdering (the fact that he didn't know it was faked is immaterial; they won't be charging him with "pretending to murder") once they have the evidence. Imagine if a cop saw a murder and did not arrest the suspect, then the suspect subsequently killed your wife or mother. Would you be saying: I totally understand. He was exercising his leeway!

    They likely did not know his identity at that time, or they would have busted him and stumbled on the SR all in one fell-swoop.

  15. Re:No. The cat has FriendlyChemists tongue Slashdo by Sarten-X · · Score: 2

    That's not how it works because a conspirator must have an active role, knowing that their actions would contribute to the crime. If the FBI did know in advance about a planned second murder, and intentionally chose to let someone die just so they'd have a better case, that's just negligence.

    That's also not how it works because the second murder didn't actually occur, either. If the FBI were actively involved in it to conspiracy levels, that's be for a solicitation charge or attempted murder, not actual murder.

    Finally, that's not how it works because that's not at all how the criminal justice system works. There is no golden truth that determines right or wrong. Rather, a prosecutor proposes a theory of how the events unfolded, and the defense presents a different theory. They both either agree, or present evidence to a panel of jurors whose job is not actually to decide guilt or innocence, but rather to decide whether the prosecutor's evidence proves the theory.

    You are welcome to submit a theory that the FBI intended to cause a murder, but now you have to prove it. So far you've shown that the FBI knew he'd tried to hire a hitman at one point, but you haven't shown that they intended to cause further murders. You're allowing a window of under a month to wrap up the investigation and arrest, with no prior indication that a second murder attempt was imminent. You'll also need to prove that such a short schedule was obviously necessary, rather than allowing more time to gather more complete evidence.

    --
    You do not have a moral or legal right to do absolutely anything you want.
  16. Re:Toooootally Didn't See That Coming by IamTheRealMike · · Score: 3, Insightful

    Right. Crimes with victims were reserved for the admins.

    BTW only an idiot thinks that forged IDs etc is "victimless". What happens to the unlucky sods who get mortgages taken out in their name?

  17. Re:bitcoin value by GameboyRMH · · Score: 4, Funny

    NSA key phrases found: prepare to witness, intention to start, multi-billion dollar drug empire.

    Looking up Slashdot user NettiWelho...alias of global user ID #2968137598

    Data stored.

    --
    "When information is power, privacy is freedom" - Jah-Wren Ryel
  18. Feds ACTUALLY sold a kilo of coke by sjames · · Score: 2

    I've heard of all sorts of stings, but it appears that the Feds ACTUALLY sold a kilo of cocaine. As in accepted the cash, and handed over the goods. Not accepted the cash, handed over the goods, then arrested the guy and took the drugs back, actually completed the transaction and left the recipient to sell it on to his customers.

    I have no problem with them busting an attempted murder for hire, but I do have some concerns about law enforcement actually becoming drug dealers.

    1. Re:Feds ACTUALLY sold a kilo of coke by bill_mcgonigle · · Score: 2

      I have no problem with them busting an attempted murder for hire, but I do have some concerns about law enforcement actually becoming drug dealers.

      Oh, come on now, let's not play naive.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
    2. Re:Feds ACTUALLY sold a kilo of coke by sjames · · Score: 4, Insightful

      In other words, they broke the law. Usually in drug buy stings they claim that they never lost control of the drugs so it was OK. In this case, they sold something that was illegal and it was completely out of their control for a period of time.

    3. Re:Feds ACTUALLY sold a kilo of coke by sjames · · Score: 2

      Distribution of a controlled substance. There is no minimum these days.

    4. Re:Feds ACTUALLY sold a kilo of coke by sjames · · Score: 2

      They broke the law then as well. They seem to be in a habit of breaking the law.

    5. Re:Feds ACTUALLY sold a kilo of coke by sjames · · Score: 2

      You should read more carefully. mixture means any substance containing detectable amounts of the drug in it. So, a kelo of gypsum with detectable cocaine = 1000 grams mixture. Now look that up on the chart.

  19. Re:No wonder he got nailed by gox · · Score: 2

    He didn't become a target by hiring someone for murder. As far as I can tell, they were already targeting him, caught one of his associates (an admin), blackmailed him pretending to be the admin, and suggested murdering the admin as a seller identity they created, who supposedly knew the admin.

    They were trying to make sure that they would be able to lock him up when they catch him, and he fell for it.

  20. Barrels by GNUALMAFUERTE · · Score: 2

    Apparently Ulbritch kept his bitcoins in 8 barrels buried in the desert

    --
    WTF am I doing replying to an AC at 5 A.M on a Friday night?
  21. Re:Toooootally Didn't See That Coming by jdavidb · · Score: 2

    Forged ID is victimless - fraud is not. If I create a fake ID saying I am old enough to drink alcohol and use it that way, that's a victimless crime. If I create a fake ID and use it to spend money out of your bank account, you are the victim.

  22. Re:No wonder he got nailed by nitehawk214 · · Score: 2

    He didn't become a target by hiring someone for murder. As far as I can tell, they were already targeting him, caught one of his associates (an admin), blackmailed him pretending to be the admin, and suggested murdering the admin as a seller identity they created, who supposedly knew the admin.

    They were trying to make sure that they would be able to lock him up when they catch him, and he fell for it.

    Wait, the cops told Ulbricht he should have the admin murdered? Attorneys will have a field day with that.

    --
    I'm a good cook. I'm a fantastic eater. - Steven Brust
  23. Re:Toooootally Didn't See That Coming by jdavidb · · Score: 2

    Right, killing someone is wrong regardless of your age or blood alcohol level. Drinking is not.

    using a fake ID as you described might be considered fraudulent

    I'm talking about right and wrong, not legal distinctions. My entire point is that the law can take things that are right and call them "wrong." That doesn't make it so, though. It just means a bunch of popularity contest winners have the power to force their opinions and wishes on the rest of us.

  24. Re:bitcoin value by ShanghaiBill · · Score: 4, Interesting

    On one level Bitcoin owners should rejoice that this criminality is being snuffed out.

    99% of what occurred on Silk Road was activity that should have never been illegal in the first place. If two consenting adults engage in a transaction that does not harm any third party, then that is none of your damn business. One of the good things about bitcoin is that it makes economic repression more difficult. No one who believes in the advancement of human freedom should "rejoice" about the end of Silk Road.

  25. Re:Worse and worse by squiggleslash · · Score: 2

    Drugs taken in a controlled manner rarely kill. You list heroin as a killer drug: I can tell you that prior to the 1970s, the drug was prescribed by doctors to addicts in the UK, who lead normal, ordinary lives (and interestingly the number of addicts was less than 1,000 - largely because there was no industry pushing the drug, if you managed to get someone hooked then they could get their supplies for free on the NHS, so why bother?) and rarely died.

    Unregulated drugs creates an environment in which "drugs" are more likely to kill - you don't know what's in whatever it is you've bought, and there's little incentive for the criminal who sold it to you to be honest. Banning them makes them more dangerous. Wouldn't controlling and regulating their supply be preferable?

    --
    You are not alone. This is not normal. None of this is normal.
  26. Re:WTF was he doing in the US? by squiggleslash · · Score: 2

    I know, right? All those high taxes punishing innocent job creators - it's a surprise he didn't go to a free country like (/continued on page 94 of "Reason" magazine.)

    --
    You are not alone. This is not normal. None of this is normal.
  27. Re:bitcoin value by Anonymous Coward · · Score: 2, Insightful

    I won't rejoice about the end of a free market like Silk Road, but I have no problem with it taking a dump if it is run by someone willing to murder people over it.

  28. Re:Toooootally Didn't See That Coming by jdavidb · · Score: 2

    If it is not wrong, then try to get the law changed

    Snort! Thank you for making me spew coffee all over my monitor!

    Since it is "contraband", it is by definition wrong to sell it.

    No, right and wrong aren't determined by legislators or voting or kings or any of those other silly games.

  29. Re:Toooootally Didn't See That Coming by jdavidb · · Score: 2

    And it's wrong to enforce wrong laws.

  30. Re:Toooootally Didn't See That Coming by evilviper · · Score: 2

    Until you kill someone because you got drunk at the bar or purchased from a distributor which wouldn't have happened if you hadn't used a fake ID.

    And because I went outside to get the mail, a butterfly flaps its wings, and causes a hurricane in the Caribbean that kills thousands. Clearly, the USPS is a murderous criminal organization that should be outlawed...

    The above statement makes every bit as much sense as yours...

    --
    Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
  31. Re:No wonder he got nailed by Valdrax · · Score: 2

    Wait, the cops told Ulbricht he should have the admin murdered? Attorneys will have a field day with that.

    Entrapment requires that the police induce a suspect to commit a crime which they would otherwise be unlikely to commit. You have to show that the cop induced the victim to do something he wouldn't normally do himself without the cop's specific involvement. (e.g. If you go to a line up of hookers and just pick the one that happens to be a cop, that's not entrapment.)

    In the Maryland indictment, an uncover cop posed as a supplier and arranged a deal with DPR to move cocaine in bulk since shipments to small time users wasn't profitable for him. A couple of weeks after they finished that deal, DPR contacted the same undercover cop about one of the site's admins who had been caught by the police and who had stolen money from other Silk Road users. He asked if he could arrange for the man to be roughed up and forced to return the money before later asking to have him killed. The indictment implies that DPR was the one to tell the cop about the guy being caught, though it's hard to tell how it went from there. He paid $40k up front and after and gave the go ahead after being told assassins were waiting to get him alone away from his wife and kid. This took place over two months with multiple chances to pull out.

    This first also comes up later in a second hit request against someone trying to blackmail him.

    The federal indictment describes an incident in which someone by the nickname "FriendlyChemist" claimed to have hacked into another Silk Road vendor's machine and downloaded the real names of vendors and customers. He attempted to blackmail DPR to the tune of half a million that he said he needed to pay off his suppliers. DPR then asked for his supplier so that they could work things out. Behind FriendlyChemist's back, he asked for the supplier to have him killed as a liability and to sell his wares directly instead. The supplier quoted a price of $150k-$300k, which DPR haggled down to the lower end of the range saying that he'd paid for $80k in the past for a hit. He was later mailed a picture of the guy dead and thanked him for his swift action.

    --
    If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").
  32. Re:Toooootally Didn't See That Coming by jdavidb · · Score: 2

    Right - keep blacks away from the white drinking fountain!