FBI Busted Silk Road, Owner Arrested In San Francisco

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Well it was a long chase but FBI caught the Dread Pirate Roberts in San Francisco. FBI seized servers used for hosting and 26000 Bitcoins, equivalent of $3.6 million at the time of seizure.  Journalist Brian Krebs was the first one to crack the news. Krebs published a purported copy of a complaint filed in the Southern District of New York against Ross Ulbricht aka Dread Pirate Roberts. He is charged with one count each of narcotics trafficking conspiracy, computer hacking conspiracy and money laundering conspiracy.

Silk Road

Silk Road was the biggest online illegal drug market which was hosted on Tor network. As per FBI filing Silk Road had 957,079 registered users who did 1.2 million transactions costs $1.2 billion. According to Wikipedia Silk Road used to host 10,000 products for sale by vendors. Majority of them were drugs including heroin, LSD, and cannabis.

Seizure of Silk Road could be good and bad for Bitcoin. The good thing is that it will somehow clean name of Bitcoin. Since Silk Road was the only way to use coins for illegal drugs. this news can also create a panic in bitcoin market and price could do a swing back to double digits. We’ll keep you updated with each and every update, so stay tuned with us.

 

[Via The Verge]

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