Silkroad closed down. Owner Arrested. - page 4.

thehun

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Quote from: wtfvanity on October 02, 2013, 01:03:08 PM

Quote from: BayAreaCoins on October 02, 2013, 11:32:51 AM

It would be funny if the Government had Goldman S. crew sitting on the Bid buying it all the way down.

Dirty bastards... They would do that too.

I am wondering how he is NOT in jail?? Should the vendors/users be concerned... only time will tell.

You're wondering why he's not in Jail? He was arrested in July...

The site was still running until today... does that not make sense to anyone? He made a deal, ran the site, and there are going to be tons of arrests.

If you were selling illegal stuff on SR, they're coming for you if they haven't already.

Source?

Qoheleth

legendary

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Spurn wild goose chases. Seek that which endures.

Quote from: wtfvanity on October 02, 2013, 01:03:08 PM

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.

mp420

hero member

Activity: 501

Merit: 500

About criminal enterprises, a relevant quote:

Quote

It really didn't take much convincing, though, because once you start, I don't believe you can stop until you are *caught*. It is too seductive, way too seductive. Viddy well, little brothers, viddy well

He should have stopped while he was ahead.

Qoheleth

legendary

Activity: 960

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Spurn wild goose chases. Seek that which endures.

Quote from: Rival on October 02, 2013, 01:02:11 PM

My website has two wallets. One holds the customer accounts and balances, and the other holds the "house" profit. The private key for the house wallet does not exist anywhere in digital form. No one ever anywhere can possibly compromise the house wallet without physical access to that private key. And that key is not even in my personal possession, although I know exactly where it is. Someday I will use it, but not for many years to come.

Kind of like burying gold bricks in the desert. No one will ever find them without the map. If he thinks like I do those btc will never be recovered unless he chooses to recover them.

Oh, absolutely. The amount seized is only, like, 5% of what Silk Road supposedly made in commissions? If Ulbricht was saving most of his winnings, he's a Shamir user by now.

NamelessOne

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Activity: 840

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While annoying, I'm glad this has happened. I've always hated the druggy, illegal aspect of Bitcoin and I hope this causes more people to question if they want to run illegal businesses with Bitcoin. It also gives the government reason to trust that they can handle bitcoin as a developing technology. If people do illegal crap with it, they can catch them, and if they do perfectly legal business, they can tax them. More rats will fill in the holes left by SR, and they risk getting caught also. Fine by me.

Also... buying opportunity, haha. Grin

Gabi

legendary

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If you want to walk on water, get out of the boat

People sell because they think price will go down so they think "i sell now, get money and buy back later cheaper"

wtfvanity

hero member

Activity: 504

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WTF???

Quote from: BayAreaCoins on October 02, 2013, 11:32:51 AM

It would be funny if the Government had Goldman S. crew sitting on the Bid buying it all the way down.

Dirty bastards... They would do that too.

I am wondering how he is NOT in jail?? Should the vendors/users be concerned... only time will tell.

You're wondering why he's not in Jail? He was arrested in July...

The site was still running until today... does that not make sense to anyone? He made a deal, ran the site, and there are going to be tons of arrests.

If you were selling illegal stuff on SR, they're coming for you if they haven't already.

Spekulatius

legendary

Activity: 1022

Merit: 1000

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.

Rival

hero member

Activity: 504

Merit: 502

My website has two wallets. One holds the customer accounts and balances, and the other holds the "house" profit. The private key for the house wallet does not exist anywhere in digital form. No one ever anywhere can possibly compromise the house wallet without physical access to that private key. And that key is not even in my personal possession, although I know exactly where it is. Someday I will use it, but not for many years to come.

Kind of like burying gold bricks in the desert. No one will ever find them without the map. If he thinks like I do those btc will never be recovered unless he chooses to recover them.

frankenmint

legendary

Activity: 1456

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HoneybadgerOfMoney.com Weed4bitcoin.com

Quote from: Inedible on October 02, 2013, 11:47:59 AM

If they sell it and cause a flash crash, there are plenty in the wings waiting to pick them up.

This is undoubtedly going to cause a significant drop in price. The question is for how deep and how long before it rises back up again.

like me ill swoop up as much as i can for anything under 50

Qoheleth

legendary

Activity: 960

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Spurn wild goose chases. Seek that which endures.

Quote from: nobbynobbynoob on October 02, 2013, 12:53:49 PM

Question is, is Bitcoin now dead? Probably (hopefully) not.

Bitcoin existed before Silk Road.

It'll exist after.

Maybe we'll return to $2/coin for a while, but whatever. Even if you think the black market is necessary for a bitcoin-denominated economy to sustain itself (I don't), that just means it's an obvious niche and sooner or later someone with better identity security will step in to fill Silk Road's shoes.

Quote from: Gimmelfarb on October 02, 2013, 12:57:16 PM

and who said that bitcoin economy wasn't made by silk road!!? now all we have are half-baked gambling sites and ghetto-as-shit merchants via bitpay!!

Don't forget OKCupid (Alexa <1000), 4chan (Alexa <1000), and Reddit (Alexa <100).

Chronikka

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Activity: 658

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Quote from: Qoheleth on October 02, 2013, 12:49:26 PM

Watching the recent block confirmations. A lot of big transfers by fat wallets. Either some involved party is busy hauling off Silkroad's corpse, or this crash is going deeper than I expected.

Oh its a full on crash at this point. Look at the trade volume on http://bitcoin.clarkmoody.com/

theonewhowaskazu

sr. member

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I would think that Silkroad's hot wallet is encrypted as well. I mean, you'd probably just store the encryption key in memory, and just re-enter the key every time you reboot, or am I missing something? Most things aren't smart enough to get the encryption key directly from memory rather than just taking the private keys from the disk.

anu

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RepuX - Enterprise Blockchain Protocol

Quote from: nobbynobbynoob on October 02, 2013, 12:53:49 PM

Wow. That happened very suddenly, didn't it?

Question is, is Bitcoin now dead? Probably (hopefully) not.

Sure, Bitcoin died many times already - it is getting good at that.

Gimmelfarb

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Quote from: DeathAndTaxes on October 02, 2013, 12:55:48 PM

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

and who said that bitcoin economy wasn't made by silk road!!? now all we have are half-baked gambling sites and ghetto-as-shit merchants via bitpay!!

DeathAndTaxes

donator

Activity: 1218

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Gerald Davis

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.

nobbynobbynoob

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Annuit cœptis humanae libertas

Wow. That happened very suddenly, didn't it?

Question is, is Bitcoin now dead? Probably (hopefully) not.

Rival

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Activity: 504

Merit: 502

Quote from: Qoheleth on October 02, 2013, 12:52:12 PM

Quote from: Rival on October 02, 2013, 12:50:12 PM

I don't think the btc can be seized. I imagine the private key is stashed somewhere far away from any digital device he may have utilized.

So your contention is that Silkroad, a website that processes tens of thousands of bitcoins worth of transactions every month, has no hot wallet?

A hot wallet is only required to make payments, but is not needed to receive them.

Qoheleth

legendary

Activity: 960

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Spurn wild goose chases. Seek that which endures.

Quote from: Rival on October 02, 2013, 12:50:12 PM

I don't think the btc can be seized. I imagine the private key is stashed somewhere far away from any digital device he may have utilized.

So your contention is that Silkroad, a website that processes tens of thousands of bitcoins worth of transactions every month, has no hot wallet?

Rival

hero member

Activity: 504

Merit: 502

I don't think the btc can be seized. I imagine the private key is stashed somewhere far away from any digital device he may have utilized.

If I was him I would have had the private key laser-etched into a piece of gold jewelry and stashed in a safe deposit box in some unknown country. Come back from prison 20 years later and collect your btc.

I don't think anyone will ever get at it, or at least if he was smart they never will.

Topic: Silkroad closed down. Owner Arrested. - page 4. (Read 9720 times)