Seems like DPR made mistakes from the start. I never visited silk road. I had heard about it, but didn't think it would be around for too long. Selling drugs will get you put in jail, no matter how you do it.
I don't necessarily agree with that. But I do think using (and certainly running) a centralized marketplace using distributed servers was a recipe for disaster -- and I would be worried if I had been a seller on SR. 
Topic: Looks like the FBI got to DPR's stash (Read 2002 times)
Seems like DPR made mistakes from the start. I never visited silk road. I had heard about it, but didn't think it would be around for too long. Selling drugs will get you put in jail, no matter how you do it.
I had thought there was a very good chance they had access to these coins. Too bad for DPR.
I'm wondering what price all those coins will go for at a federal auction!
Of course. They offered him a plea-bargain if he gave up his stash. Probably cut his time in jail by half. The authorities love to seize money. Believe me, they enjoy seizing money. Any assets not so much as they have to go through the process of auctioning/reselling it.
The next step is for me to create a legitimate SR with the same level, if not more, activity.
The next step is for me to create a legitimate SR with the same level, if not more, activity.
This. Ulbricht is useless to them. The coin, however, provides them a pretty sweet welcome package into the world of BTC
Agreed. I'm pretty sure a vast, vast majority of cases end with a plea bargain.
Of course. They offered him a plea-bargain if he gave up his stash. Probably cut his time in jail by half. The authorities love to seize money. Believe me, they enjoy seizing money. Any assets not so much as they have to go through the process of auctioning/reselling it.
The next step is for me to create a legitimate SR with the same level, if not more, activity.
The next step is for me to create a legitimate SR with the same level, if not more, activity.
This. Ulbricht is useless to them. The coin, however, provides them a pretty sweet welcome package into the world of BTC
I cant wait for the information how FBI acquired access to his private keys or password.
But it seems DPR was a bit careless, at least according to informations in his indictment. He was for example using same nick altoid for one of the first posts about Silk Road and later for post seeking programmer with contact email address on Gmail in his own name...
So maybe they found some unencrypted wallet's backup or something.
Or maybe he gave them 144 thousand for some deal, so he can enjoy his other 300K much sooner :)
But it seems DPR was a bit careless, at least according to informations in his indictment. He was for example using same nick altoid for one of the first posts about Silk Road and later for post seeking programmer with contact email address on Gmail in his own name...
So maybe they found some unencrypted wallet's backup or something.
Or maybe he gave them 144 thousand for some deal, so he can enjoy his other 300K much sooner :)
http://www.forbes.com/sites/andygreenberg/2013/10/25/fbi-says-its-seized-20-million-in-bitcoins-from-ross-ulbricht-alleged-owner-of-silk-road/
Seems legit. I think most people had assumed that DRP's stash would remain under his control, looks like that isn't the case. What do we think, newbies?
Given the recent spike in value after shutting down SR, the US government will enjoy liquidating those seized BTCs for a nice chunk of change to buy more weapons, equipment, and maybe pay someone's bonus.Seems legit. I think most people had assumed that DRP's stash would remain under his control, looks like that isn't the case. What do we think, newbies?
I don't like the idea of the authorities hogging something cool and finite as BTCs.
NOOOOO! I always imagined him scattering a few thousand uniquely encrypted private keys all over the world and recovering these when he eventually got out of prison. Hind sight is always 20/20 but I know if i held that much BTC I would be paranoid as all hell and get really creative in creating redundancies and fallback plans. But unfortunately this is probably a pipe dream this day and age in the United States thanks to federal prosecutors and their games, plea bargains and the surveillance state. I just hope this story serves as a lesson for the next person to inevitably come along and take his place.
How would you of handled your BTC if you had as much as him?
Of course. They offered him a plea-bargain if he gave up his stash. Probably cut his time in jail by half. The authorities love to seize money. Believe me, they enjoy seizing money. Any assets not so much as they have to go through the process of auctioning/reselling it.
The next step is for me to create a legitimate SR with the same level, if not more, activity.
The next step is for me to create a legitimate SR with the same level, if not more, activity.
http://www.forbes.com/sites/andygreenberg/2013/10/25/fbi-says-its-seized-20-million-in-bitcoins-from-ross-ulbricht-alleged-owner-of-silk-road/
Seems legit. I think most people had assumed that DRP's stash would remain under his control, looks like that isn't the case. What do we think, newbies?
Given the recent spike in value after shutting down SR, the US government will enjoy liquidating those seized BTCs for a nice chunk of change to buy more weapons, equipment, and maybe pay someone's bonus.Seems legit. I think most people had assumed that DRP's stash would remain under his control, looks like that isn't the case. What do we think, newbies?
I don't like the idea of the authorities hogging something cool and finite as BTCs.
http://www.forbes.com/sites/andygreenberg/2013/10/25/fbi-says-its-seized-20-million-in-bitcoins-from-ross-ulbricht-alleged-owner-of-silk-road/
Seems legit. I think most people had assumed that DRP's stash would remain under his control, looks like that isn't the case. What do we think, newbies?
Given the recent spike in value after shutting down SR, the US government will enjoy liquidating those seized BTCs for a nice chunk of change to buy more weapons, equipment, and maybe pay someone's bonus.Seems legit. I think most people had assumed that DRP's stash would remain under his control, looks like that isn't the case. What do we think, newbies?
I don't like the idea of the authorities hogging something cool and finite as BTCs.
From what I hear, they flipped one of the top drug dealers on the silk road. A month later, they caught DPR and confiscated his bitcoins. Days later, they caught several other large dealers across Europe and the US. Seems to me that the protocol and everything is still secure, but like with most systems, the human element may be the weakest link.
Using passwords is troublesome because you can forget it, or your family wont get the BTC when you die. So paper wallet is best, but FBI can easily get private keys this way
What are peoples thoughts on how the coins were seized? Was it as simple as a big fat wallet.dat file just waiting to be opened? Found a paper wallet? Did the FBI have to crack passwords?
FBI went through his computer and found his keys - my guess is an unencrypted wallet.dat 
First the Megaupload, now this... 
I always hated Megaupload.Sucks for him, jailed and nothing waiting for him when he gets out.
when he gets out.
I don't think that is going to happen :L
Possible that he voluntarily gave up the password as part of some deal with the prosecution. I can't see any scenario where he'd ever see those bitcoins again (criminal proceeds and all).
I think DPR wasn't as careful as he needed to be. Lesson learned.
Probably left a small digital footprint, and footprint nonetheless. Money makes you careless.
First the Megaupload, now this...
My guess would be he used the same password on another site.
That or he probably got complacent and choose a weak password so it would be easier to remember.
That or he probably got complacent and choose a weak password so it would be easier to remember.
Jump to: