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Bitcoin Drug Bust: Fed Raid ‘Silk Road’ and Seize $3.6 Million in Virtual Dosh

21st Century Wire says…

Just when you thought the world couldn’t get any more bizarre, we see the first big virtual Bitcoin-drug bust…

But will it actually stick in court? Is this kid any worse than HSBC and Citibank who knowingly launder billions in drug cartel cash – without even receiving so much as a slap on the wrist? This could be an important precedent case, for sure.


Feds arrest the alleged founder of Bitcoin’s largest drug market

Washington Post

Federal prosecutors have indicted a man named Ross William Ulbricht in San Francisco.

They say he is the founder of Silk Road, a controversial website that allows users to buy and sell narcotics and other illicit goods. Founded in 2011, Silk Road website used Bitcoin, a digital currency that helped mask the identity of Silk Road’s merchants and customers.

The government shuttered the site and seized approximately 26,000 Bitcoins worth approximately $3.6 million. The government says it was the largest ever Bitcoin seizure in history.

“During its two and a half years in operation, Silk Road has been used by several thousand drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to well over a hundred thousand buyers,” the government alleges in its indictment. The government says that 600,000 Bitcoins changed hands on the site, which at current exchange rates translates to $1.2 billion.

In addition to narcotics, Silk Road also had listings for fake drivers’ licenses, counterfeit currency, hacking services and much more, the government alleges…

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