Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Viruses & Malware
Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
Silk Road Founder Arrested, Bitcoin Drug Site Shutdown
Silk Road Founder Arrested, Bitcoin Drug Site Shutdown

By Seth Fitzgerald
October 2, 2013 2:48PM

    Bookmark and Share
By no means was the Silk Road an incredibly "underground" Web site. According to user reports, it operated like a regular and reputable e-commerce store. Even the little things, like customer support were provided to people using the secret marketplace to buy drugs or whatever else they wanted -- until the FBI took it down.
 

Related Topics

Bitcoin
Hacking
FBI
E-Commerce



An online drug -- and potentially murder-for-hire -- market called the Silk Road has been shut down after the FBI arrested its alleged proprietor and seized data from the marketplace. The Silk Road reportedly had millions of dollars in Bitcoin sales.

The Silk Road's owner has been arrested and, as of right now, is being charged with narcotics trafficking, computer hacking, soliciting a murder-for-hire and money laundering, according to a complaint unsealed Wednesday. The owner "Dread Pirate Roberts" as Ross Ulbricht called himself, according to law enforcement officials, appears to have been a Pennsylvania State University graduate.

A Go-To Place For Illegal Deals

Ulbricht was incredibly smart when it came to his plan for the Silk Road. Using Bitcoins for the transactions meant the illegal doings were completely untraceable, ensuring that the marketplace's users could not be caught unless someone leaked its user list.

No matter what drug someone was looking for, the Silk Road was able to facilitate deals for cocaine, heroin, ecstasy, marijuana, etc. This activity reportedly resulted in more than $1 billion worth of Bitcoin transactions and millions in profit for the site's owners.

The Silk Road was only active between 2011 and 2013, but during that time, feds say it racked up 1.2 million sales worth $1.2 billion. Out of that money, Ulbricht and whoever else ran the site reportedly received $80 million in commissions.

Not only were drugs a popular buy on the Silk Road, but there were also other transactions for hacking tools. Keyloggers, password crackers, Trojans, and many other pieces of software and malware were being sold on the marketplace.

Ross Ulbricht

Everything came crashing down this morning when Ulbricht was taken to court before being put into a holding facility. Ulbricht worked with a small team to manage and take in profits from the Silk Road. The FBI has stated that the team used a foreign hosting provider to keep the site up and running.

Although there were only a few employees -- based upon our current information -- Ulbricht was not stingy and reportedly paid employees between $1,000 and $2,000 weekly in Bitcoins.

By no means was the Silk Road an incredibly "underground" Web site. According to user reports, it operated like a regular and reputable e-commerce store. Even the little things, like customer support were provided to people using the secret marketplace to buy drugs or whatever else they wanted.

While facilitating the sale of drugs is bad enough from a legal standpoint, Ulbricht may face even more serious charges. Along with running the Web site, the FBI took him down for allegedly conspiring to kill another Silk Road user. Ulbricht is said to have contacted someone through the site and requested that the person kill a user who had supposedly been gearing up to release a list of Silk Road users.

If Ulbricht is found guilty, between the murder-for-hire and drug trafficking charges, it's likely he will be spending quite a long time behind bars.
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Viruses & Malware
1.   Android 'Fake ID' Puts Millions at Risk
2.   Big DDoS Attacks Hit Record in 2014
3.   Google Hacker Team to Hunt Bugs
4.   Russian Hacker's Charges Revealed
5.   Hackers Target Western Energy Firms


advertisement
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
Big DDoS Attacks Hit Record in 2014
Attackers often use NTP reflection.
Average Rating:
Hackers Target Western Energy Firms
Appears to be state-sponsored group.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Tor Internet Privacy Service Warns Users It Was Breached
You may never have heard of the Tor Project, but the Internet privacy service is making headlines. Tor’s devs say users might be victims of an attack launched against the project earlier this year.
 
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.