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US Government Lurked On Silk Road For Over a Year

angry tapir writes "In order to build a case against the notorious Silk Road underground marketplace, a team of U.S. law enforcement agencies spent well over a year casing the site: buying drugs, exchanging Bitcoins, visiting forums and even posing as a vendor, although they did stop short of selling any illicit goods. From March 2012 until September 2013, Federal agents closely tracked the site, making over 50 drug purchases, according to Jared DerYeghiayan, an agent with the Department of Homeland Security who was part of a special investigation unit looking into the site.

25 of 129 comments (clear)

  1. Go get em... by wbr1 · · Score: 4, Funny
    Good job boys. Stop those dopers! They would be raping your grandma and selling acid to your 5 year old if we didn't do this! Look how violently they fight over the black market we created!

    Now, kindly pay your taxes, drink a case of beast and watch the football game. Thank you!

    --
    Silence is a state of mime.
  2. Who dat on Silk Road by dotslashdot · · Score: 5, Funny

    Turns out, the government was just buying and selling to itself the whole time and no one else is actually on Silk Road!

  3. Bitcoins - Good Enough for Government Work! by Canth7 · · Score: 2

    Who says Bitcoins aren't legit payment services? They work just fine for the US gov't to buy drugs, to seize and then eventually sell back to the public. http://www.coindesk.com/us-mar...

    1. Re:Bitcoins - Good Enough for Government Work! by Canth7 · · Score: 2

      Parts of the US government hold that Bitcoin is property, namely the IRS. However, the government certainly counts it as money with regard to money laundering - just ask Charlie Shrem. Agreed that the undercover purchases aren't really official business, however, this is definitely official business: http://www.usmarshals.gov/asse... I don't imagine that the US Marshals are going to sell Bitcoin one day and then on another day have a different branch of the US government say that Bitcoin isn't a valid means of transferring value, legal tender be damned.

    2. Re:Bitcoins - Good Enough for Government Work! by jrumney · · Score: 4, Informative

      The US government holds that Bitcoin is property not legal tender.

      Legal tender has a very specific and limited meaning relating to payment of debts - if you owe a debt, then an offer of legal tender to settle it cannot be refused. Not being legal tender is not a barrier to something being used in commerce, even by the government. If both parties agree, they can use whatever payment system they want (as long as the IRS is kept happy by declaring a US$ equivalent where required).

    3. Re:Bitcoins - Good Enough for Government Work! by Shakrai · · Score: 3, Interesting

      Parts of the US government hold that Bitcoin is property, namely the IRS. However, the government certainly counts it as money with regard to money laundering - just ask Charlie Shrem.

      Laundering can be done with any tangible asset, from cash to diamonds to Bitcoin. That's hardly news and doesn't suggest the Government considers Bitcoin to be a currency. Bitcoin can be considered a currency when it's legal tender for all debts, public and private. Until then it's merely an asset. The fact that some people are willing to trade it for goods and services does not make it a currency. You could exchange everything from beer to securities for goods and services. Maybe I'll start charging people shares of GOOG for my labors....

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    4. Re: Bitcoins - Good Enough for Government Work! by Anonymous Coward · · Score: 2, Informative

      If Bob's No-Cash-Allowed Hot Dog Stand doesn't present a bill to you until you finished eating the hot dog, then Bob has to accept cash as payment for your debt. However, if Bob makes you pay in full when you place the order, as most hot dog stands do, there is no debt to settle and he has the right to refuse business with anyone who doesn't have a credit card.

  4. Slashdot messing up their UI? by Anonymous Coward · · Score: 5, Informative

    Has someone been tweaking the Slashdot CSS? Because you've gone and fucked things up.

    The Newer/Older buttons on the front page shrank, so the background style doesn't cover all of the text. Also, the search bar in the header (site-wide) shrunk in height and is too small to display the text typed into it. In the screenshot I have "search term here" entered into the input. Screenshot 1

    There's a huge empty white block on the left side of each article page now. Screenshot 2

    The post/reply comment page now has a semi-visible "Archived Discussion" button, on every article, even brand new ones. Screenshot 3

    All in Firefox 34, Windows 7.

    1. Re:Slashdot messing up their UI? by BarbaraHudson · · Score: 2, Interesting

      You forgot that the massage list is also now fixed-maximum-width, glued to the left side, which looks stupid on larger monitors

      --
      "Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
    2. Re:Slashdot messing up their UI? by pitchpipe · · Score: 5, Insightful
      They're probably trying to fuck up the classic site so they have an excuse to roll out beta to fix it. It's definitely not displaying properly on my phone anymore.

      If it becomes beta only, I'll become soylentnews.org only.

      --
      Look where all this talking got us, baby.
    3. Re:Slashdot messing up their UI? by The+Fifth+Man · · Score: 4, Informative

      They'll follow this course of action now -- subtle stuff.

      Back in 2006 they ran a CSS redesign contest. Slashdot users overwhelmingly preferred Peter Lada's redesign:
      http://web.archive.org/web/201...

      They picked a mobile-ready, stripped down design that left a lot to be desired. Then the beta fiasco with the Dice purchase ("fuck you, get ready to have this shoved down your throat for the sake of pointless redesign" ).

      To avoid a hue and cry, they'll be making unannounced changes like this. Why? Because fuck the slashdot community, that's why.

  5. its a drug bust by Anonymous Coward · · Score: 3, Insightful

    For everyone who is about to object: what do you think a drug bust looks like? They posed as drugs consumers/dealers and busted the parties buying/selling. This seems like what my taxpayer dollars should go towards: stomping out illegal activity where it is prevalent.

    1. Re:its a drug bust by pitchpipe · · Score: 4, Insightful

      For everyone who is about to object: what do you think a drug bust looks like? They posed as drugs consumers/dealers and busted the parties buying/selling. This seems like what my taxpayer dollars should go towards: stomping out illegal activity where it is prevalent.

      Not only is it a complete waste of time and ruins people's lives, it is a fucking waste of my tax dollars. Oh, but they sure are about to win this stupid fucking drug war.

      Next you think they'll try to outlaw stupidity, thereby breaking logic once and for all.

      --
      Look where all this talking got us, baby.
    2. Re:its a drug bust by ArsonSmith · · Score: 5, Insightful

      I know some people probably can't handle it, but the only lives I know that have been ruined have been due to the police action against them and nothing to do with the pot smoking they did.

      --
      Paying taxes to buy civilization is like paying a hooker to buy love.
  6. Your Tax Dollars At Work by hyades1 · · Score: 4, Interesting

    So how many millions of dollars did this "team of U.S. law enforcement agencies" spend in a whole year of fattening themselves up at the taxpayer's expense?

    And what did they accomplish? They knocked Silk Road off the net for a few months, and in so doing helped it improve its security for next time. Now it's up and running again, making scads of money for the operators, and thumbing its nose at the U.S.

    Oh, well, at least long-suffering taxpayers can happily contemplate about all the boats, cottages and retirement homes they've bought for Norbert the Nark and his Homeland Security buddies.

    --
    I've calculated my velocity with such exquisite precision that I have no idea where I am.
    1. Re:Your Tax Dollars At Work by vux984 · · Score: 2, Insightful

      And what did they accomplish? They knocked Silk Road off the net for a few months, and in so doing helped it improve its security for next time.

      What is your point?

      Are you suggesting we just ignore the black market?

      That we should simply pretend it doesn't exist, until its so mainstream that even the local coffeeshop will let you pay for your espresso and avoid paying taxes?

      You do have a supportable case that drugs shouldn't be a black market product in the first place. But that's hardly a justification to make the argument that the police shouldn't be tasked with shutting down black markets.

      What about murder for hire? Money laundering? Child porn? Slave trafficking? ...

    2. Re:Your Tax Dollars At Work by Anonymous Coward · · Score: 5, Insightful

      What about murder for hire? Money laundering? Child porn? Slave trafficking? ...

      Unlike recreational drug use, those things cannot be done responsibily and they always have victims. That's why they should remain illegal, because they do demonstrable material harm to real people, not merely because they're frowned upon by busybodies, nanny states, private prison industries, and other control freaks whose fevered egos require them to try (and fail) to dictate how other people will live.

      I seriously and rightly question the intellectual honesty of anyone who would deliberately conflate such things. A willful effort to misrepresent one issue by grouping it with much worse issues can be the only motive there. This is, in fact, a good example characterizing the pro-drug-prohibition rhetoric that has expanded the police state and caused over 60% of all prisoners to be there because of nonviolent drug offenses at tremendous monetary and social cost to us all.

    3. Re:Your Tax Dollars At Work by Anonymous Coward · · Score: 2, Interesting

      Money laundering shouldn't be illegal because of the 4th Amendment/5th Amendments.

      It's only due to presumed guilt that such an absurd concept even exists. It's partially drug dealers fault for dealing in cash instead of gold. If drug dealers only accepted gold coins as payment, the US Government would have a hard time going after them for money laundering.

      Murder for hire gets blurry around assassination markets vs Life Insurance.

      Nobody is arguing that shutting down child porn and slavery is bad. They are great examples of better uses for tax dollars than harassing the retailers/consumers of the few naturopathic medications which actually work. If Weed, Coke, Opium, Peyote, and Mushrooms were legal, very few people would consume Meth, Crack, Heroin, Methadone, PCP, or LSD.

      Amphetamine salts/Provigil should be available with prescription, but that prescription should be "shall issue" unless a compelling reason can be demonstrated by the prescribing physician that the danger to the patient is immediate and compelling. The pill bottles should come with big nasty bold text like on cigarettes:
      "Sleep is the only medically recommended treatment for fatigue. Use of this substance is known to be bad for your health. Extended periods of sustained use are dangerous and will have permanent and lasting negative health consequences including cardiac disease, dementia, or even death.

      Please consult a sleep therapist or make the necessary lifestyle changes if insomnia or schedule problems are requiring use of these substances on a regular basis. Contact the Labor Board for assistance if your employer is not making the necessary accommodations to allow adequate sleep."

      I have a small hand-full of mental illnesses but sleep problems are the worst. Sustained treatment for depression/CFS with Amphetamines/stimulants has given me some pretty good insight in to the merits of those medications. I think anyone should be allowed to have them for any reason. They're better for you than cigarettes, which is the socially accepted stimulant of choice for stressful occupations. People literally kill themselves for their jobs. I'm still physically recovering from my last extended period of overtime. High-stress occupations are just workaholics with a lack of professionalism required to pace themselves at a sustainable level.

      Despite the fact that speed/stimulants are a band-aid to poor decision making: having a large portion of society sucking down energy drinks and no doze because it's somehow more socially acceptable to do heart damage with caffeine than speed/cocaine is fucking stupid. I've been stimulant free for nearly 3 months now. I'm much happier and in better health without them(but I get much less done). Oh well: It's not worth it and the productivity gains are short lived. Borrowing against the future, even with CFS.

      I've never done coke, but despite it being a terrible-samaritan of a drug: it's less damaging to society than banning it and having to deal with Meth/Crack as a consequence. Ditto in regards to opium vs heroin/methadone. I'm not even touching on the reduction in abuse of prescription pain killers.

      I don't have any comment on benzo's. I don't like them or understand their appeal.

      Muscle relaxers are pleasant and should probably be available just like Amphetamines/Provigil.

      Short version:
      Legalize Weed, Coke, Mushrooms, & Opium and leave Crack/Heroin/Meth illegal. Society will immediately benefit with true addicts getting the help they need after a complete collapse in consumer demand for the majority of the smuggling/black market problem.

  7. And that's just one agency! by ron_ivi · · Score: 4, Funny
    Assuming most countries have many law enforcement agences; and there are many countries --- it makes me wonder if most of the traffic on Silk Road was just a bunch of undercover operations trolling each other.

    For example, in the US, I could imagine there were buyers from DEA, FBI, some DHS agencies, some DoD agencies, maybe even NYPD (heck, NYPD even has a branch in London, Israel, and Hamburg ) -- and that's just one country. Multiply by a couple hundred countries, and that really might have been a significant fraction of the market.

    1. Re:And that's just one agency! by dbIII · · Score: 2

      Lem wrote an awesome story along such lines (a lot of his stuff was political satire set in an SF environment to avoid getting dragged off to prison), and there was a Get Smart episode like that as well.

  8. Free Keen and Jury Nullification by Okian+Warrior · · Score: 5, Interesting

    I've been following the trial with some interest.

    The Free Keene group went down (from NH to NYC) to protest the trial and hand out Jury Nullification pamphlets, for which they were threatened by the judge.

    The government is using threats to prevent jury nullification information from getting to potential jurors. Doesn't seem fair to me, but then the constitution is probably written in some strange dialect of English where the meaning is something different to a lawyer.

    It occurs to me that this is one way we can have an effect on government in addition to the vote. By informing people about jury nullification, we can encourage juries to ignore unfair laws.

    1. Re:Free Keen and Jury Nullification by whoever57 · · Score: 3, Interesting

      Doesn't seem fair to me, but then the constitution is probably written in some strange dialect of English where the meaning is something different to a lawyer.

      Substitute Supreme Court for Humpty Dumpty:

      'When I use a word,' Humpty Dumpty said, in rather a scornful tone, 'it means just what I choose it to mean -- neither more nor less.'

      --
      The real "Libtards" are the Libertarians!
  9. Re:the thing i never understood was by Anonymous Coward · · Score: 3, Interesting

    So in all your big spiel, you either think that the government is still covering up their "exploit" of tor, or you are just spreading FUD.

    Tor was taken down do to a social slip and not anything technical.

    The TOr project openly acknowledges they are vulnerable to timing attacks by an entity that an view all of the network or at least a large segment of it. The US government is definitely such a entity. That isnt even remotely controversial. Thats probably why the Tor project itself warns you not to depend on Tor if you truly need strong anonymity.

    Why would they need an "exploit" when they easily have the resources to take advantage of a fundamental weakness in the Tor design? Methinks your "anti-tinfoil-hattery" is far in excess of your actual technical knowledge of what you're talking about. It definitely wouldn't be the first time a Slashdotter "argues" from emotion and is easily refuted.

  10. jeez by wept · · Score: 2

    for all the sophistication, you'd think the silk road would have asked if you are a cop during registration. you know they have to say "yes" if they are.

  11. Re: Over 50 drug purchases. by Anonymous Coward · · Score: 2, Interesting

    Most police bashing is quite well supported. Take for example the enormous waste of time and money this represents, while as many others have pointed out, actual crimes with actual victims are not dealt with. Of course, dealing with actual criminals is HARD and harassing people whose crime has no victim is so much easier and yet still headline grabbing.