Feds Shut Down Silk Road Black Market

silkroadseize1This is big news in the world of black market, anonymous Bitcoin commerce. How much user data is at risk, if any? It’s interesting to note that it was dumb luck, not any weaknesses in the security, that lead to his capture.

From the article:

Even during a federal government shutdown, drug pirates aren’t safe. Popular online black market Silk Road has been shut down by the Federal Bureau of Investigation and an individual alleged to be its infamous owner, ‘Dread Pirate Roberts,’ has been arrested, according to a Federal Bureau of Investigation complaint.

Ross William Ulbricht, allegedly the ‘Dread Pirate Roberts’ owner of Silk Road, was arrested in San Francisco on Tues. at 3:15pm PT at a public library and his popular site shut down.

Krebs on Security uploaded a photo of Silk Road apparently shut down by an FBI raid and has since published the full government complaint. It alleges that Ulbricht is the mastermind behind the Silk Road, and the ‘DPR’ behind its booming marketplace of activity for narcotics and other illicit goods, the most famous use of the open-source electronic money known as Bitcoin.

Agents found Ulbricht after Canadian border authorities routinely checked a package intended for his San Francisco home and discovered nine fake identification cards within, which Ulbricht allegedly was seeking to obtain to rent more servers to power Silk Road as it massively expanded.

And from Reuters:

The site, which had operated since early 2011, also offered tutorials on hacking ATM machines, contact lists for black market connections and counterfeiters, and guns and hit men for sale, according to the charges.

Authorities also seized $3.6 million worth of digital currency Bitcoin, which was used instead of cash or credit cards to complete transactions on Silk Road. The charges against Ulbricht said his website generated sales of more than 9.5 million Bitcoins, roughly equivalent to $1.2 billion.

Read the rest here.

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