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Silk Road Founder Indicted In New York

An anonymous reader sends this report from Wired: "Federal authorities today announced a Grand Jury indictment against Ross Ulbricht, the alleged founder and owner of the underground drug emporium Silk Road. The indictment (PDF), in New York, includes one count for narcotics conspiracy, one count of running a criminal enterprise, one count of conspiracy to commit computer hacking and one count of money laundering, according to the indictment. It's the second indictment for the the 29-year-old, who was arrested last October in San Francisco. Ulbricht was previously charged in New York at the time of his arrest, but authorities had until December to obtain an indictment against him based on new evidence seized. They sought an extension of that time and announced the indictment today. Ulbricht had been previously indicted in Maryland on charges of conspiring to have a former administrator of Silk Road murdered in exchange for $80,000."

50 of 94 comments (clear)

  1. Whatever. by Anonymous Coward · · Score: 1

    This is up to the attorneys now.

    I'm just a programmer with a bunch of advanced degrees in engineering and I know shit about the law.

    Legal reasoning is beyond 1+1=2. I wish it were that easy but it requires subtleties that aren't taught in engineering school.

    1. Re:Whatever. by ObsessiveMathsFreak · · Score: 1

      Legal reasoning is beyond 1+1=2. I wish it were that easy but it requires subtleties that aren't taught in engineering school.

      And the most subtle of all these subtleties is that in the end, the Law is less of a system of rules and more of a pantomime in service to the governing classes. It no longer matters what the Silk Road founder did or did not do. The Law will find a way to satisfy the powers he has offended.

      --
      May the Maths Be with you!
    2. Re:Whatever. by RyuuzakiTetsuya · · Score: 1

      Subtle my ass. Silk Road was a den of iniquity.

      Drugs? Assassination? Yeah. No subtleties here.

      --
      Non impediti ratione cogitationus.
    3. Re:Whatever. by ultranova · · Score: 1

      What sort of prosaic nonsense is this? The guy set out to get rich by making an illegal and illicit black market, did so, tried to have a bunch of people killed using ill gotten gains as a lure, etc., and you sit and preach in foreboding tones, as if to imply he is somehow not the bad guy, or not A bad guy, or not a guy who did things we should be concerned about?

      Did Dread Pirate Roberts send a pusher to your neighborhood? No. Did he try to force drugs on someone who was not interested in them? No. Did he try to get someone killed? Possibly, but if he was, it was someone trying to blackmail him. So what did he do? Set up a black market in an out-of-way location where those interested in drugs could buy and sell them without bothering anyone else. No bystanders were harmed or in fact affected in any way, unless you count eating into the profits of traditional drug gangs "harm".

      So is Dread Pirate Roberts a bad guy? Maybe, but only if accept the proposition "( Powers That Be have a greater right than you to determine what you may do to your body and mind and denying them makes you a bad person rather than simply mistaken ) or that you are never allowed to use lethal force in self-defence".

      Your conspiracy theory is a bit heady, no?

      There is no "conspiracy theory" here. The Silk Road affair was a power struggle between DPR and PTB, and DPR lost. What happens now is that the victor destroys the luser. This may or may not be just, depending on your viewpoint, but for the PTB it's about maintaining their power.

      Of course, this might end up being a rather pyrrhic victory for the PTB. Silk Road "normalized" drug trade from dealing with violent thugs to a comfortable online experience. With its downfall there are now a dozen replacements competing with safety features, user experience, stock, payment methods etc in the best free market fashion. As a result a stereotypical drug deal is turning from "deal with a dealer" into making a regular postal order after reading user reviews, harm mitigation guides, legal risk minimization guides, etc. And as a result of that, the stereotypical drug user is turning from a junkie giving blowjobs in an alley for the next shot into someone who has a home, a computer, Internet connection, can set up and deal with Tor, can acquire Bitcoins... in other words, a normal functional person.

      DPR is as good as dead, but so is old-style drug trade and with it almost certainly the War on Drugs. The question remains how many people will be victimized by it befire PTB give it up.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

    4. Re:Whatever. by Gryle · · Score: 1

      Blah blah blah the Man's out to keep me down. It's amazing how easily we can justify inaction if we invent a conspiracy to oppress us.

      --
      Only two things are infinite, the universe and human stupidity, and I'm not entirely sure about the universe - Einstein
    5. Re:Whatever. by ultranova · · Score: 1

      I've got to say I regard you as a tinfoil-hatter;

      You do that.

      your comments border on the nonsensical, especially the part where you justify six murder attempts by glibly assuming that the victims must have all tried to (evilly!) blackmail the guy who set up this crime network.

      That's what newspaper says, actually. And I'm not "justifying" anything, just pointing out that this particular criminal enterprise doesn't seem to have resulted in any harm to anyone who didn't actively participate.

      Ulbricht doesn't seem to be a nice person, but he also was not exactly a mafioso setting up territory. In your words, he's "not a guy who did things we should be concerned about" because, frankly, I care absolutely nothing if people get high, as long as they don't bother me about it. And like I said, the crazy junkie looking for the next hit couldn't use Silk Road.

      And your breathless account of how the Silk Road model promises to take violent crime out of the illicit drug trade is just absurd.

      Yet you fail to refute any part of it. You specifically fail to refute the assertion that removing thugs fighting over street corners and replacing them with postal orders lessens violence.

      "Outdated business models" is code for "I don't like paying for things, but want them anyway"

      No, it's code for "your attempts to make money are futile, since the assumptions they're based on have been made obsolete by technological innovations or changing social or economic conditions".

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

  2. Of Course by Anonymous Coward · · Score: 1

    One count of doing something illegal, six more counts of doing things we made illegal just to catch people when we didn't find enough evidence.

  3. [OT] beta.slashdot.org by Any+Web+Loco · · Score: 4, Insightful

    Seriously /. - fuck you! If I go to slashdot.org you redirect me to beta.slashdot.org. If I go to classic.slashdot.org, you redirect me to beta.slashdot.org. If I log in, you redirect me to beta.slashdot.org.

    I freaking HATE beta.slashdot.org and I resent your pushing me into it! If I log in, and my preferences are set to classic, LET ME HAVE CLASSIC!

    1. Re:[OT] beta.slashdot.org by ChunderDownunder · · Score: 2

      I dunno what you're doing wrong, I'm NEVER directed to the beta site.

    2. Re:[OT] beta.slashdot.org by Frosty+Piss · · Score: 4, Informative

      You're only directed to the Beta site if you're not logged in.

      One would think that a Slashdot visitor with a half million ID would be smart enough to figure that out.

       

      --
      If you want news from today, you have to come back tomorrow.
    3. Re:[OT] beta.slashdot.org by Anonymous Coward · · Score: 2, Informative

      What exactly is so hard about adding /?nobeta=1 to the url? These posts are seriously offtopic and do nothing but derail the conversation. If you aren't smart enough to figure out how to Slashdot, GTFO.

    4. Re:[OT] beta.slashdot.org by Any+Web+Loco · · Score: 1

      Maybe I'm doing it wrong. Use a nice clean fresh browser, no cookies, no history and log into Slashdot. From a clean start (ie not having logged in before, and with no cookies etc) I can't get to classic. Yeah I can add a URL trailer, but really, if my prefs say "Classic" I'm not sure whay, on log on, I don't automatically get that.

    5. Re:[OT] beta.slashdot.org by Anonymous Coward · · Score: 1

      http://slashdot.org/?nobeta=1

    6. Re:[OT] beta.slashdot.org by Steve+Hamlin · · Score: 1

      "You're only directed to the Beta site if you're not logged in."

      Incorrect.

      When logged in, on several occasions, including this afternoon, I have opened-in-new-tab a number of Slashdot articles, and about 1 out of 10 open in the beta site (and logged in at the beta URL, to boot). I can delete the 'beta.' in the URL, and get the classic site.

      I guess I'm not smart enough also?

  4. Hans Reiser's attorney? by ebno-10db · · Score: 4, Funny

    Maybe Hans Reiser can give him the name of his attorney.

    1. Re:Hans Reiser's attorney? by Frosty+Piss · · Score: 1

      Maybe Hans Reiser can give him the name of his attorney.

      There were MANY here who claimed Reiser was innocent, and many who saw his guilt were modded into oblivion. By original sub 100,000 ID became so heavily loaded with Bad Karma for pointing out Reiser's bullshit, I had to walk away from it.

      But what do you know? Reiser plead guilty and led them to the body.

      Next up, these idiots would post as Anon Cowards about how Nina Reiser had brought it on herself...

      ----

      You folks do understand that beyond the discussion about the silly "War On Drugs", this guy Ulbricht tried to hire hit men to kill a few people?

       

      --
      If you want news from today, you have to come back tomorrow.
    2. Re:Hans Reiser's attorney? by ultranova · · Score: 1

      There were MANY here who claimed Reiser was innocent, and many who saw his guilt were modded into oblivion.

      As well as they should been, along with those who claimed innocence. No one "saw" anything, except perhaps in a crystal ball; people were making wild guesses based on incomplete second-hand information, and then attributing calling a proverbial coin toss correctly on their 3l1t3 sk1llz rather than luck.

      Occam's Razor applies to explaining one's own successes and failures too, not just external events.

      You folks do understand that beyond the discussion about the silly "War On Drugs", this guy Ulbricht tried to hire hit men to kill a few people?

      Yes, and by all accounts the intended victims were trying to blackmail Ulbricht. Which shifts the discussion from "is murder acceptable" into the rather more murky waters of "when, if ever, is using lethal force in self-defence acceptable"?

      This whole thing promises to be far more interesting than the Reiser trial, precisely because the facts are pretty well-known but the moral implications far less clear.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

  5. Re:Another retarded libertarian by rmdingler · · Score: 1
    No.

    He's another of the generation, no matter how successful, trying to keep in touch with his inner gangster.

    Murder for hire. Dumbest smart person this quarter.

    --
    Happiness in intelligent people is the rarest thing I know.

    Ernest Hemingway

  6. You're not alone. by Anonymous Coward · · Score: 5, Insightful

    You're not alone. I see these anti-Slashdot-beta posts so often now. I really hope that the Slashdot brass are seeing them, too, and hopefully realizing how much just about everyone hates this beta site.

    Everything about the beta site is contrary to what typical Slashdot users want and will put up with. It's like it has been specifically designed to alienate as many existing users here as it possibly could. Maybe that would make some business sense, were it not for the fact that it does absolutely nothing to attract any new users.

    While it could be argued that Slashdot has been stagnating, if not declining, for several years now, the beta site going live (if it happens) will surely just accelerate that process, rather than stop or reverse it. There are many of us who will be driven away if the beta site goes live. It truly is that unusable.

    I hope that those in charge at Slashdot are just giving it a two-month trial period. Maybe at the end of February they'll be able to admit that the beta project is an utter failure, and they'll put an end to it. That's really the only viable option. The beta site has no future, regardless of whether it's because it's sensibly killed off by Slashdot management, or whether it's because it goes live and drives away all of the existing users.

    1. Re:You're not alone. by glavenoid · · Score: 3, Interesting

      It's like it has been specifically designed to alienate as many existing users here as it possibly could.

      Unless the overlords at Dice are so unfathomably, unbelievably incompetent, this is the only reasonable conclusion that can be drawn which poses another conundrum: without the users the slashdot.org domain has no value whatsoever. Rather than alienate the 15 years or so of slashdot users in an attempt to attract new users, Dice would have been much better off creating something new from scratch.

      It's totally mind-boggling.

      --
      I, for one, am looking forward to the inevitable /. beta rollout fallout.
    2. Re:You're not alone. by glavenoid · · Score: 2

      Oh yea, I forgot to mention: WTF is this shit about? Why so many "contributors" and what is their purpose for slashdot? Stumbling upon this reminds me of the Simpsons where Homer discovers a secret plot to move the Springfield Isotopes to Albuquerque and no-one would believe him.

      I'm telling y'all, something nasty is about to happen to /.

      --
      I, for one, am looking forward to the inevitable /. beta rollout fallout.
    3. Re:You're not alone. by Anonymous Coward · · Score: 1

      Oh yea, I forgot to mention: WTF is this shit about? Why so many "contributors" and what is their purpose for slashdot?

      And where is that "Anonymous Coward" dude in that list? Just because someone uses a pseudonym doesn't mean they don't contribute value.

    4. Re:You're not alone. by drinkypoo · · Score: 1

      Maybe they're just trying to help us find something else to do. They're concerned about our welfare, and think we spend too much time on slashdot.

      If they force me into a shitty new interface, that problem will be solved. I won't come back. That is no doubt a feature to many :)

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  7. Re:A website by Anonymous Coward · · Score: 1

    Except he was specifically running the site to facilitate illegal drug sales. He was also taking a cut of the sales. That goes far beyond your absurd bullshit.

  8. Re:Another retarded libertarian by PRMan · · Score: 1, Interesting

    He was already long on his way to going to jail when he arranged the hits on people. The feds had been watching him for almost a year already gathering evidence.

    --
    Peter predicted that you would "deliberately forget" creation 2000 years ago...
  9. Re:Another retarded libertarian by Ralph+Wiggam · · Score: 3, Insightful

    If you start with "The fascist US government is afraid of the bitcoin revolution" and work backwards from there- anything is defensible.

  10. Re:A website by Ralph+Wiggam · · Score: 4, Insightful

    If you run a Nickleback fan forum, and someone posts child porn, you are not responsible for that.

    If you create a web site expressly for anonymous selling, and you're well aware of people selling drugs on it, and taking a cut of those profits, then you are a conspirator to that crime.

  11. Just like the CEO's by future+assassin · · Score: 1

    one count for narcotics conspiracy, one count of running a criminal enterprise, one count of conspiracy to commit computer hacking and one count of money laundering,

    --
    by TheSpoom (715771) Uncaring Linux user here. I have nothing to add to this but please continue. *munches popcorn*
  12. Conspiracy to commit computer hacking? by Forrest.Dix · · Score: 2

    Seriously? Conspiracy to commit computer hacking? When did hacking become illegal?

    1. Re:Conspiracy to commit computer hacking? by Forrest.Dix · · Score: 2

      When I hear that, I picture Steve Wozniak conspiring to build the Apple II.

  13. Re:entrapment by Anonymous Coward · · Score: 1

    If he really was guilty of that, to the point of being convictable, why didn't he get indicted with that?

    He was indicted with that. RTFIndictment, it's on the page 5.

    Also, your concept of entrapment is just a tad above "undercover cops can't lie if you ask them whether they are cops, or it's entrapment!".

    PS: "they knew Silkroad's activities" != "they knew DPR's identity".

  14. Re:entrapment by Ralph+Wiggam · · Score: 2

    In order to show entrapment you have to make a judge or jury believe that if the government had not been involved, that the crime would not have occurred. There's no way this guy can make that case.

  15. Re:entrapment by Ralph+Wiggam · · Score: 5, Insightful

    The timeline does not support your theory. By the time the feds got involved, Silk Road was already a very popular marketplace. They got access to the servers, and watched the site operate for about 4 months. That's very standard in drug ring cases. It would be stupid to arrest everyone involved the moment you know about it. The goal is to collect a mountain of evidence so that they can charge people with a bunch of crimes and make rock solid cases in court.

  16. Re:entrapment by Ralph+Wiggam · · Score: 1

    Yeah...that's not at all what I'm talking about.

  17. DPR, arrogant & dumb by Nehmo · · Score: 1

    Ross Ulbricht is arrogant, inexperienced and dumb, and he doesn't have a sufficiently strong moral foundation to operate a large anti-establishment enterprise. When arrested, he was using the Glen Park public library (in his home city of San Francisco, CA USA) WiFi viewing a Silk Road admin page he had titled "mastermind". This event shows his attitude toward himself and his level of caution. He was caught because he slipped-up on identity security, realized it, yet took no precautions, like leaving the country.
    I'll provide personal story that gives some insight into my own attitude toward being cautious while at the screen: Of the last three times I was busted, once (for traffic warrant) occurred as I was biking away from the courthouse, but the other two times prior (one traffic and the other, I kid you not, for littering) I was sitting in front of the computer at home.

    --
    (||) Nehmo (||)
  18. Re:Another retarded libertarian by slick7 · · Score: 1

    No, he was a criminal. He tried to arrange a murder. It has nothing to do with politics.

    Kennedy was murdered, but that had nothing to do with politics?

    ( ok i guess technically hes just accused, but if hes convicted then yes, hes a criminal )

    In a civil court,he's innocent until proven guilty. In a federal/ Admiralty court, he's guilty until proven innocent. This is a crime of corporations.

    --
    The mind conceives, the body achieves, the spirit manifests.
  19. Next up - gov. contract! by Rob_Bryerton · · Score: 4, Insightful
    From the summary:

    ...includes one count for narcotics conspiracy, one count of running a criminal enterprise, one count of conspiracy to commit computer hacking and one count of money laundering,...

    So, from that little snippet, it seems our man is qualified to work at the following government agencies:
    CIA
    FBI
    NSA

    Or, he could just run for congress. Scratch that, it seems he'd be under-qualified.

  20. Re:A website by Anonymous Coward · · Score: 1

    I'm pretty sure running a Nickleback fan forum is the more serious of the two charges here so your example is moot.

  21. Re:Another retarded libertarian by dreamchaser · · Score: 1

    I don't know what country you're talking about, but in the US one is innocent until proven guilty in Federal court just the same as in State or local courts.

  22. Re:A website by Anonymous Coward · · Score: 1

    If you create a web site expressly for anonymous selling, and you're well aware of people selling drugs on it, and taking a cut of those profits, then you are a conspirator to that crime.

    Awesome! Current legal precedent in the US legal system is to charge that person 5 hours of profits and let them keep doing it. Seems legit to me

  23. Bullshit by Anonymous Coward · · Score: 1

    Them saying they were only investigating for that little amount of time is just plausible deniability for knowing about it and letting it escalate to what it became. Silk Road was around for YEARS. I remember people who even weren't computer savvy talking about it and using it. The only reason anything was done, was from all the complaints being made so now they need to uphold the good guy image. There's far worst nodes on the tor network.. child rape, animal torture / fighting rings, hit men for hire, snuff videos.. a lot of which is ran by cartels and other criminal organizations(Eastern Europe). This guy was an easy target to glorify themselves with. Don't get me wrong though, he deserved what he got.. but don't buy into their bullshit, it's just a show and a way for them to make a reasoning for all the data hoarding and bad NSA publicity.

  24. nobeta=1 does not always work. by Anonymous Coward · · Score: 2, Informative

    No, it's not hard to add. But it often doesn't work! I'll add it, and yet usually still remain stuck on the beta site.

    Besides, it's naive to think that it'll remain available if the beta site does go live at some point. Not that it does much good now, mind you, given how fucking broken it apparently is!

  25. Re:entrapment by Bill,+Shooter+of+Bul · · Score: 1

    Wow judging a criminal matter by what appears in a slashdot summary? I just lost the hope I didn't realize I still had for humanity.

    --
    Well.. maybe. Or Maybe not. But Definitely not sort of.
  26. Re:entrapment by Goaway · · Score: 1

    What makes me extra suspicious is why I didn't see that charge in this article summary.

    It's... It's in the article summary.

    I mean, it's right there. In the summary.

    Literally.

  27. Re:Another retarded libertarian by pantaril · · Score: 1

    He used the money he made to arrange a murder. How is that at all defensible?

    Easily. Someone extorted him and users of his site even if he caused no harm to anyone. Government refused to help him. If he ignored the threat, he and his users would end up in jail. Under those circumestances, killing the extorter is perfectly sensible defense. The main problem is of course the fact that selling drugs is illegal.

  28. Try... by Anonymous Coward · · Score: 1

    ?no_beta=1

  29. Re:entrapment by Dthief · · Score: 1

    But its at the end....do you really expect people to read the WHOLE summary

    --
    www.RacquetUp.org - Helping Detroit Youth
  30. Re:Another retarded libertarian by ultranova · · Score: 1

    No, he was a criminal. He tried to arrange a murder. It has nothing to do with politics.

    ---- Booth was a patriot ---- If you dont agree with me, dont bother replying as i dont care what you have to say ----

    My irony sense is tingling.

    --

    Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

  31. Re:A website by Ralph+Wiggam · · Score: 1

    Are you talking about HSBC? It was 5 weeks of profits, not 5 hours. At least get your basic facts right.

    And HSBC was *not* a conspirator to money laundering. They did not follow the oversight regulations and allowed other people to launder money.

  32. Re:entrapment by tsqr · · Score: 1

    Actually, to show entrapment you have to make a judge or jury believe that the government induced the individual to commit the crime. Creating the opportunity to commit the crime isn't enough. Providing aid (as in, providing bomb-making materials) isn't enough.

    Not entrapment:
    Perp: I want to kill that guy.
    Cop: Want to borrow my knife?
    Perp: Hey, thanks, man.

    Entrapment:
    Perp: I hate that guy.
    Cop: Me, too. I'll give you $1000 to kill him.
    Perp: I dunno. Seems kind of extreme.
    Cop: Come on. I'll give you $2000 to kill him.
    Perp: Oh, all right. I could use the money.