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Topic: Silkroad closed down. Owner Arrested. - page 3. (Read 9720 times)

hero member
Activity: 504
Merit: 500
WTF???
October 02, 2013, 02:29:47 PM
#87
I seem to be missing the word "arrest".  Most likely through some manipulation of tor they were able to find and break into the server.   That "wealth of information" probably led to clues which led to more which eventually led to them making the arrest not in July but yesterday.

Read the whole article. I'll quote more for you.

Quote
The government says it identified Ulbricht after a routine border search of a package that contained nine counterfeit IDs. The package was shipped from Canada to an address in San Francisco. When the government visited the San Francisco address, they found Ulbricht there.

The government then identified the primary Silk Road server and obtained an image of its hard drive in July, providing the federal government with a wealth of information about the Silk Road's operations.


It says because of the fake id's they found him there, then they talk about finding the server, and they mention July.
If that narrative is to be believed, it sure adds lovely poetic overtones to that September DPR response to Atlantis's closure.

Indeed.
sr. member
Activity: 240
Merit: 250
October 02, 2013, 02:22:37 PM
#86
Goddamit!

Just like DPR got fucked over by technology, so did I!

I had both http://www.bitcoin-tools.de/index.html AND http://namcdn.com/btcalarm/
running on Firefox AND Opera with alarms set to under 137$ and they all failed me!

Dammit.

Maybe you should have tried our service under www.bitcoinreminder.com Grin
sr. member
Activity: 476
Merit: 250
October 02, 2013, 02:16:36 PM
#85

babble and ad hominem edited


plonk.
legendary
Activity: 960
Merit: 1028
Spurn wild goose chases. Seek that which endures.
October 02, 2013, 02:16:25 PM
#84
I seem to be missing the word "arrest".  Most likely through some manipulation of tor they were able to find and break into the server.   That "wealth of information" probably led to clues which led to more which eventually led to them making the arrest not in July but yesterday.

Read the whole article. I'll quote more for you.

Quote
The government says it identified Ulbricht after a routine border search of a package that contained nine counterfeit IDs. The package was shipped from Canada to an address in San Francisco. When the government visited the San Francisco address, they found Ulbricht there.

The government then identified the primary Silk Road server and obtained an image of its hard drive in July, providing the federal government with a wealth of information about the Silk Road's operations.


It says because of the fake id's they found him there, then they talk about finding the server, and they mention July.
If that narrative is to be believed, it sure adds lovely poetic overtones to that September DPR response to Atlantis's closure.
sr. member
Activity: 462
Merit: 250
October 02, 2013, 02:13:35 PM
#83
can now be tracked? i don't understand. blockchain was always public.... the feds are already holding the "marked" money -- how does that help them going forward?

The blockchain is public but the info is meaningless unless real world info can be attached to it. These coins can now be used in fake buying operations or any other entrapment in order to gather intel.

You're stupid to think they didnt already do that b4 the seize.

You must think the feds are some poor college kid living in his mom's basement like you, dont you.
legendary
Activity: 3430
Merit: 3080
October 02, 2013, 02:06:58 PM
#82
It would be pretty amusing if the site came back up again, DPR claiming that his "decoy" had worked, or some such story. Funny as well as thought provoking.
sr. member
Activity: 476
Merit: 250
October 02, 2013, 01:45:46 PM
#81
can now be tracked? i don't understand. blockchain was always public.... the feds are already holding the "marked" money -- how does that help them going forward?

The blockchain is public but the info is meaningless unless real world info can be attached to it. These coins can now be used in fake buying operations or any other entrapment in order to gather intel.
hero member
Activity: 658
Merit: 500
October 02, 2013, 01:40:51 PM
#80
It says the FBI seized BTC worth $3.6 Million US. Thats about ~25,500 BTC.

That's 25,000 btc that can now be tracked by the Feds. They'll probably use them to setup fake SR-style honeytraps.
can now be tracked? i don't understand. blockchain was always public.... the feds are already holding the "marked" money -- how does that help them going forward?
sr. member
Activity: 476
Merit: 250
October 02, 2013, 01:36:39 PM
#79
It says the FBI seized BTC worth $3.6 Million US. Thats about ~25,500 BTC.

That's 25,000 btc that can now be tracked by the Feds. They'll probably use them to setup fake SR-style honeytraps.
hero member
Activity: 504
Merit: 500
WTF???
October 02, 2013, 01:35:51 PM
#78
Is anyone curious as to why the SR logo is in the background of the seizure notice?? In past FBI seizure's the logo has never appeared.
http://media.coindesk.com/2013/10/silk-road-marketplace-seized.jpg

http://ryangreenberg.com/files/2012/megaupload/megaupload.png
also, past seizure images did not have drop shadows on the logos.

Read my post above this one, yes they have.
hero member
Activity: 504
Merit: 500
WTF???
October 02, 2013, 01:35:22 PM
#77
Is anyone curious as to why the SR logo is in the background of the seizure notice?? In past FBI seizure's the logo has never appeared.





Do an images search for domain seized. They have FBI logos on them, all the agencies involved. I've never seen the company that they seized their logo in the background, and have never seen it for a hidden service.
legendary
Activity: 2058
Merit: 1452
October 02, 2013, 01:35:05 PM
#76
Is anyone curious as to why the SR logo is in the background of the seizure notice?? In past FBI seizure's the logo has never appeared.
http://media.coindesk.com/2013/10/silk-road-marketplace-seized.jpg

http://ryangreenberg.com/files/2012/megaupload/megaupload.png
also, past seizure images did not have drop shadows on the logos.
hero member
Activity: 504
Merit: 500
WTF???
October 02, 2013, 01:33:13 PM
#75
I seem to be missing the word "arrest".  Most likely through some manipulation of tor they were able to find and break into the server.   That "wealth of information" probably led to clues which led to more which eventually led to them making the arrest not in July but yesterday.

Read the whole article. I'll quote more for you.

Quote
The government says it identified Ulbricht after a routine border search of a package that contained nine counterfeit IDs. The package was shipped from Canada to an address in San Francisco. When the government visited the San Francisco address, they found Ulbricht there.

The government then identified the primary Silk Road server and obtained an image of its hard drive in July, providing the federal government with a wealth of information about the Silk Road's operations.


It says because of the fake id's they found him there, then they talk about finding the server, and they mention July.
hero member
Activity: 826
Merit: 1000
October 02, 2013, 01:31:23 PM
#74
Is anyone curious as to why the SR logo is in the background of the seizure notice?? In past FBI seizure's the logo has never appeared.



legendary
Activity: 4256
Merit: 1313
October 02, 2013, 01:30:19 PM
#73
And that Tor is not secure enough for this type of system.

Who's to say that there won't be another SR? This should serve as a lesson. Centralized systems, even if clandestine, are easily brought down.
legendary
Activity: 2478
Merit: 1020
Be A Digital Miner
October 02, 2013, 01:25:50 PM
#72
At the bottom of page 20 of the criminal complaint you can get a better feel for the size of Silk Road.   you have to realize that they pick the BIGGEST days for the most shock value.
He received $19,459 of commission on one day and the FBI choose that day.   So, assume it was NOT the biggest day and he made that EVERY DAY.   $19,459 X 364 days = $7,083,076 per year (yet later they seem to indicate it is only $3.4M) in commission.   Let's assume the average commission is 7% (low end so as to maximize the size), that would make Silkroad $100,000,000 per year business.
donator
Activity: 1218
Merit: 1079
Gerald Davis
October 02, 2013, 01:25:28 PM
#71
You're wondering why he's not in Jail? He was arrested in July...
Quote from: nytimes.com
The authorities identified the man as Ross Ulbricht, who was arrested by F.B.I. agents Tuesday afternoon at a library in San Francisco.
Huh

http://www.washingtonpost.com/blogs/the-switch/wp/2013/10/02/feds-arrest-the-alleged-founder-of-bitcoins-largest-drug-market/

Quote
The government then identified the primary Silk Road server and obtained an image of its hard drive in July, providing the federal government with a wealth of information about the Silk Road's operations.

I seem to be missing the word "arrest".  Most likely through some manipulation of tor they were able to find and break into the server.   That "wealth of information" probably led to clues which led to more which eventually led to them making the arrest not in July but yesterday.
hero member
Activity: 658
Merit: 500
October 02, 2013, 01:18:59 PM
#70
Goddamit!

Just like DPR got fucked over by technology, so did I!

I had both http://www.bitcoin-tools.de/index.html AND http://namcdn.com/btcalarm/
running on Firefox AND Opera with alarms set to under 137$ and they all failed me!

Dammit.
sounds like, of the two of you, you came out alright.  Wink
hero member
Activity: 504
Merit: 500
WTF???
October 02, 2013, 01:14:40 PM
#69
You're wondering why he's not in Jail? He was arrested in July...
Quote from: nytimes.com
The authorities identified the man as Ross Ulbricht, who was arrested by F.B.I. agents Tuesday afternoon at a library in San Francisco.
Huh

http://www.washingtonpost.com/blogs/the-switch/wp/2013/10/02/feds-arrest-the-alleged-founder-of-bitcoins-largest-drug-market/

Quote
The government then identified the primary Silk Road server and obtained an image of its hard drive in July, providing the federal government with a wealth of information about the Silk Road's operations.

legendary
Activity: 2478
Merit: 1020
Be A Digital Miner
October 02, 2013, 01:13:08 PM
#68
So reading the complaint IF (and this is a big IF) the FBI is correct then the SR is many magnitudes larger than most predicted.
Quote
All told, the site has generated sales revenue totally over 9.5 million Bitcoins and collected commissions from these sales totaling over 600,00 Bitcoins.  Although the value of Bitcoins has varied significantly during the site's lifetime, these figures are roughly equivelent today of approximately $1.2 billion in sales and approximately $80 million in commissions.
pg 6 (section 16).  Sadly the pdf is an image not copyable text so I am not going to hand copy a larger quote.
http://www1.icsi.berkeley.edu/~nweaver/UlbrichtCriminalComplaint.pdf

On edit:  I guess that isn't as surprising as I thought.  SR has been around ~30 months.  $1.2 billion / 30 = $40 million per month.  In 2012 a study estimated volume at $10M to $15M per month.  In a followup about 6 months later sales were reported to have increased significantly and the author said $40M wasn't unlikely.  I guess just seeing it as a single aggregate figure was shocking.


Yes, it was just there for government shock value.   And most of those coins were used when you need thousands of BTC to buy $200 worth of something (and now the government is saying that those 2,000 BTC are really $290,000...... 
Further in the complaint it gives a number on how much he made in commission in the last year (?) and you get a better picture of size.
He was living in an apartment with roommates and paying $1000 per month.   Not exactly KimDotCom money.
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