Thoughts if Bitcoin is really indeed involved here:
1) So while the media has been incessantly talking about the supposed link between Bitcoin and online illegal drug sales, there is now direct evidence supporting this claim and I envision this story to be referenced ad infinitum from here onwards - a permanent smear that will hurt public perception.
2) Apparently undercover detective were involved buying drugs from the darknet. How does this affect Silk Road and anyone who sells/buys on there, surely precautions will be taken and this could hurt that service severely.
3) The trend of online drug sales shifting online with Bitcoin serving as the monetary agent allowing the transactions to be possible will not be lost on the authorities. They will either step up such honey trap efforts and catch more culprits or alternatively a more severe crackdown on the currency is possible (not sure how this would be imposed).
Not the end of Bitcoin, but certainly could be a bump on the road.
What actually happened:
1. The cops have arrested multiple people involved with the Kiosk designer drugs that became illegal a couple of days prior.
2. The Kiosk owners are all "nice kids" that were slapped a couple of times so they have snitched on the people selling them the designer drugs.
3. Of course the same people that have sold them the designer drugs are the same people selling it on you-know-where.
The media is just twisting it to give the Israeli police more credit, in reality they are a bunch of 70 IQ donut eating idiots with most of the detectives unable to track the shit in their large intestine let alone catch someone on the darknet (who isn't a complete fool).
Everything is 99% snitches in Israel, the law enforcement is non-existent and impotent just like the politicians. I had a friend who was an Admin in an Israeli community board and there was a member posting links with pedophilic content, so the admin has grabbed his IP and wanted to give it to the police station on his way to work, when he got there and tried to explain everything nobody knew what an IP was, then they put handcuffs on him, put him into the investigation room and slapped him around for about two hours asking him to take the blame for posting the pics. I absolutely cannot convey with words just how idiotic these people are.