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Wow silk road has been seized by the feds

Discussion in 'BlackHat Lounge' started by hustleup, Oct 2, 2013.

  1. hustleup

    hustleup Regular Member

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    http://www.reuters.com/article/2013/10/02/crime-silkroad-raid-idUSL1N0HS12C20131002

    Oct 2 (Reuters) - U.S. law enforcement authorities raided an Internet site that served as a marketplace for illegal drugs, including heroin and cocaine, and arrested its owner, the Federal Bureau of Investigation said on Wednesday.


    The FBI arrested Ross William Ulbricht, known as "Dread Pirate Roberts," in San Francisco on Tuesday, according to court filings. Federal prosecutors charged Ulbricht with one count each of narcotics trafficking conspiracy, computer hacking conspiracy and money laundering conspiracy, according to a court filing.
     
  2. kvmcable

    kvmcable Supreme Member

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  3. MrBlue

    MrBlue Senior Member

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    DPR wasn't very careful:
    Code:
    https://medium.com/p/d48995e8eb5a
     
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  4. Patel

    Patel Senior Member

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    Fuck man.... missed the opportunity to sell high, so bummed.
     
  5. Steeky

    Steeky Regular Member

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    i guess his competitor is happy
     
  6. Techxan

    Techxan Elite Member

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    Guess the Feds didn't hear about the shutdown.
     
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  7. warner410

    warner410 Regular Member

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    Bitcoin crashing. Down $20 in 2 hours. :D.
     
  8. MrBlue

    MrBlue Senior Member

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    A buying opportunity for sure!

     
  9. rob1977

    rob1977 Power Member

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    This is interesting. I've no opinion on silk road whatsoever my feelings always have been that if it doesn't hurt the innocents then crack on.

    What does anger me is that the feds have the will to shut down silk road but leave the paedophile sites up and running!!!!!

    So to me that says high revenue site must be closed down but disgusting filth with no turnover can stay. Argh!!!!!
     
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  10. Black.Star

    Black.Star Junior Member

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    The bust of one guy was real but the seizing notice was a killswitch probably.
    The seizing notice is watermarked with the silkroad logo (which is something the FIB never does).
    That DPR guy was not one person on his own.

    Source: Various IT security and news sites.
     
    Last edited: Oct 2, 2013
  11. larrydetuvi

    larrydetuvi Regular Member

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    Low:$109.70000

    Look at the graph
    http://tinypic.com/r/ioi7he/5

    (Sorry for the crappy host, img tool seems to not be working propperly, If someone could mirror it here, great)

    I guess Bitcoins where backed by drugs? okno
     

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    Last edited: Oct 2, 2013
  12. Duffers5000

    Duffers5000 Elite Member

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    I doubt the FBI are too concerned about the silk road. If this was a war on drugs thing then it would have been the DEA getting involved. This is more a concerted attempt to destabilise Bitcoin.
     
  13. chriswick

    chriswick Registered Member

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    Lol, the bitcoin market is a blood bath right now.
     
  14. aleclarson

    aleclarson Newbie

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    Agreed, perfect time to buy bitcoins.
     
  15. larrydetuvi

    larrydetuvi Regular Member

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  16. DiamonMike

    DiamonMike Regular Member

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    Deffently this guy couldn't run SilkRoad by himself.He made some mistakes that only amateurs make.With the amount of money he made over the years by grabbing bitcoins when they were selling for peanuts he will be out in notime.
     
  17. tymillz

    tymillz Super Moderator Staff Member

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  18. VirgilH

    VirgilH Registered Member

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    Although I am pretty sure that tor is in many ways compromised, the reason he got caught had nothing to do with tor and everything to do with him leaving personal information EVERYWHERE when he was first starting out. I never used the sr, seeing as as internet savvy as I thought I was I had never even bothered with tor up until a few days after that huge freedom hosting thing happened, and naturally that's been a waste since damn near all the sites are down most of the time, but I had friends who swore by it and it did make sending and receiving drugs a great deal safer than the "old school method that could get you robbed and killed".

    Either silk road will keep running with a new DPR, or someone with more sense will fill in the void in the market. Bitcoins falling will always be a concern for businesses trying to bring it to mainstream but for people selling drugs or really anything that the government deems illegal, they could be worth ten cents a piece and their operation wouldn't change all that much.
     
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  19. Black.Star

    Black.Star Junior Member

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    No offense but that's not what caused the bust. He did some pretty serious rookie misstakes (Real name, real email) in the past and that fucked him over like it should.

    You are able to read everything here: http://www.scribd.com/doc/172768269/Ulbricht-Criminal-Complaint

    Some things to notice are:
    -Cryptography was really good, and the complaint states that the TOR network makes it "practically impossible" to trace users-The tumbler worked. It "frustrates attempts to track transactions back to the blockchain and makes it practically impossible to trace users."

    -They caught Ross Ulbricht through simple web sleuthing and a few subpoenas.

    So basically it was nothing on the technical side. It was just something that happens when Geeks go Gangster.
     
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  20. Patel

    Patel Senior Member

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    Exactly, Tor was not the reason why they got busted.

    1.Advertised Silk Road days after it's launch on drug forums and bitcointalk.org with the username "altoid". 8 months later he used this username looking for developers and included his personal email (rossulbricht@gmail.com) in the message.

    2.Using records from a seized webserver, the FBI agent subpoena'd his way back through a private VPN server to an IP address at a coffee shop on Laguna street in San Francisco. This happened to be 500 feet away from the house of one on Ross Ulbricht's friends.

    3.US Customs intercepted a package containing 9 pieces of counterfeit id. All 9 had photos of Ross Ulbricht with different names.

    4.Ulbricht posted on Stack Overflow using his real name, asking "How can I connect to a Tor hidden service using curl in php?". One minute later he changed his username to "frosty", but a subpoena shows the original name.
     
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