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Eight more arrested in global Silk Road busts

"Authorities in Britain, Sweden, and the United States have arrested eight more people following last week's closure of Silk Road." More: AP. Xeni 10

The downfall of Silk Road, and with it, the so-called Dark Net

From Adrian Chen's Gawker long-read about that recent bust of the web's biggest online illegal drug marketplace:
The lesson of the Silk Road takedown isn't that Ulbricht was sloppy about security. It's that the idea of a world famous, anonymous illegal market is fatally contradictory. Ullbricht made some technical mistakes, but his biggest one was conceptual: buying his own hype that high-tech tricks would let him implement a radical free market fundamentalism that could never work politically.
Read the whole piece. Related: Chen's profile of Ross William Ulbricht.

Silk Road prosecution: how does the US criminal justice system actually work?


Popehat's Ken White (a former federal prosecutor) uses the arrest of alleged Silk Road founder Ross "Dread Pirate Roberts" Ulbricht to explain how the criminal justice system works, including the difference between a grand jury indictment and a criminal charge, and how to understand sentencing guidelines and "maximum possible sentences." It's a great way to use current events to deepen your understanding of important, complicated systems.

If you enjoy that, you should also check out Ed Felten's post that contrasts the Silk Road story with the shut down of Lavabit to explore how crypto does -- and doesn't -- change the criminal justice system.

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Where the Silk Road ends: Feds arrest 'Dread Pirate Roberts,' alleged founder of largest Bitcoin drug market


What users who attempt to connect to the Silk Road marketplace see now (HT: Adrian Chen)

Looks like the government shutdown didn't stop federal agents from shutting down the most popular "deep web" illegal drug market. In San Francisco, federal prosecutors have indicted Ross William Ulbricht, who is said to be the founder of Silk Road. The internet marketplace allowed users around the world to buy and sell drugs like heroin, cocaine, and meth.

The government announced that it seized about 26,000 Bitcoins worth roughly USD$3.6 million, making this the largest Bitcoin bust in history. There were nearly 13,000 listings for controlled substances on the Silk Road site as of Sept. 23, 2013, according to the FBI, and the marketplace did roughly USD$1.2 billion in sales, yielding some $80 million in commissions.

According to the complaint, the service was also used to negotiate murder-for-hire: "not long ago, I had a clean hit done for $80k," the site's founder is alleged to have messaged an associate.

Ulbricht, 29, is also known as "Dread Pirate Roberts."

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Cyber-crooks mail heroin to Brian Krebs


Brian Krebs is a security expert and investigative journalist who has published numerous ground-breaking stories about the online criminal underground, much to the consternation of the criminal underground. Krebs has been the victim of much harassment, including a dangerous SWATting (where someone called a SWAT team to Krebs's door, having told them that an armed gunman was inside).

Most recently, a Russian crook called Flycracker crowdfunded the purchase of a gram of heroin on the Silk Road, which he mailed to Krebs, having first called the cops to alert them that Krebs was a narcotics trafficker. Luckily for Krebs, he lurks in the same forums in which this was planned, and knew of it in advance and tipped off the local cops and the FBI.

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