Silk Road Undercover Agents Accused Of Stealing Bitcoin

ANNOUNCEMENT: Since the Silk Road 2.0 bust by the feds a few other Darknet Markets have fallen. The best Darknet Market available is the Agora Marketplace. It has the best reputation and a bigger selection of goods than Silk Road 2.0.

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BitcoinsTwo former federal agents have recently been charged with the crime of stealing over $800,000 worth of bitcoin from the defunct online black marketplace Silk Road while carrying out their duties. These two were special agents working with the Baltimore Silk Road Task Force, which led the investigations that culminated in the 2013 shutdown of this darknet website, along with the arrest of Ross Ulbricht aka Dread Pirates Roberts, the man who was recently convicted of running Silk Road.

Shaun Bridges, formerly of the US Secret Service is accused of taking $800,000 worth of bitcoins via an account he gained control of during the investigations carried out on this online black marketplace. He is alleged to have transferred the funds to his own personal account while working as a computer forensics expert in the investigation. The DOJ complaint made against him claims that he utilized the special access he obtained by spearheading the arrest of Curtis Green; one the administrator of Silk Road who used the alias “Flush”. The complaint asserts that Bridges or someone who worked in his place used the information on Flush’s account together with another one that wasn’t specified to steal 20,000 bitcoins worth $350,000.

Silk Road MarketplaceCarl Force formerly of the Drug Enforcement Administration (DEA), and who was the lead undercover agent in the investigation is also accused with the same charges. Force was given the responsibility of initiating communications with Dread Pirates Roberts, the Silk Road administrator, but is alleged to have used this privilege for his own personal motives. He is accused of selling DPR information on the ongoing investigation, using the unauthorized alias of “French Maid” for which he was paid $100,000 while at the same time he made use of his authorized alias of “Nob” to get a total 925 bitcoins worth $90,000 paid in two installments in exchange for information. Nob posed as a drug smuggler operating in the US claiming to possess extensive criminal connections across the globe. However, according to Force’s official statement he claimed he did not receive any money from DPR.

He is also accused of investing and also working for an online bitcoin exchange firm, CoinMKT, where he is alleged to have used his clout as a DEA agent to assist this firm to conduct criminal checks on their clients. Which ultimately enabled him to freeze one client’s account, the proceeds from which he transferred to his own personal account. Force is also accused of sending an unlawful DOJ subpoena to an online payment firm containing a request to unfreeze his own personal account.

All in all, according to the DOJ complaint, Shaun Bridges faces charges of fraud and money laundering. Carl Force faces similar charges in addition to stealing government property as well as conflict of interest. The laptop confiscated from Ross Ulbricht and containing evidence that was used against him in his trial, is also said to have evidence that will be used against these two former federal agents. This includes details on chats they had with Silk Road administrator, Dread Pirates Roberts (Ulbricht), along with others that can prove invaluable in their eventual conviction.

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Winning Bidders In The Silk Road Bitcoin Auction

ANNOUNCEMENT: Well it has happened! Another Silk Road Darknet Market has spawned after the demise of Silk Road 2.0. The new site is called Silk Road Reloaded and is utilizing different technology than its predecessors therefore a new guide for Silkroad Reloaded will be coming soon. In the meantime Agora Marketplace is still alive and kicking bigger than ever with more listings than Silkroad 2.0.

>> Click here to find the best alternative: Agora Marketplace <<

Silk Road Marketplace and BitcoinsThe US Marshals Service has just announced the outcome of its 3rd Silk Road Bitcoin auction held on Thursday, 5th March. Three secret bidders went home with a total of 50,000 bitcoins, with the highest beneficiary bagging in 27,000 followed by 20,000 and lastly 3,000. This is according to a statement released by USMS official spokeswoman Lynzey Donahue.

Though, the Marshals Service declined to comment on actual monetary value of their winning bids. If current market rates are to go by, then the Silk Road bitcoins are worth $8 million, $5.9 million and $0.9 million respectively.

The Silk Road auction attracted 14 registered bidders with each one of them placing a combined total of 34 bids for the 50,000 bitcoins that were seized from Ross Ulbricht’s PC. As for now, the identities of these winners still remains a mystery since the USMS has not yet released any information pertaining to this. Donahue says that the names will remain concealed for security reasons. However, a New York-based bitcoin exchange company known as it Bit recently announced that it is one of the winners in the 3rd bitcoin auction. They claim to have won the last 3,000 BTC.

BitcoinsThe closed auction process took place from 8:00 am to 2:00 pm EST on March 5, with deadline for registration having been set a little bit earlier on 2nd of the same month. All bitcoins were sold off in 20 unique blocks, consisting of an initial 10 blocks with 2,000 bitcoins and another 10 blocks of 3,000 bitcoins. Those who had any connections to Ross Ulbricht or his Silkroad site were not allowed to contest.

It’s estimated that the total value of bitcoins seized from Ulbricht’s computer and the Silk Road servers is $28.5 million. The government now sits on only 50,000 more bitcoins before all of them are auctioned off to the public.

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SecondMarket Is A Participant In The 3rd Bitcoin Auction

ANNOUNCEMENT: Well it has happened! Another Silk Road Darknet Market has spawned after the demise of Silk Road 2.0. The new site is called Silk Road Reloaded and is utilizing different technology than its predecessors therefore a new guide for Silkroad Reloaded will be coming soon. In the meantime Agora Marketplace is still alive and kicking bigger than ever with more listings than Silkroad 2.0.

>> Click here to find the best alternative: Agora Marketplace <<

Bitcoin NewsThe U.S. Marshals Service which was given the role of disposing off the virtual currency (Bitcoins) that were seized by the FBI after the black marketplace Silk Road was closed down in 2013 held their third auction on March 5. The bitcoins which were seized during the Silk Road investigation had a higher demand during their third auction as compared to the second auction which took place last December.

SecondMarket Inc. is one of the firms that have expressed interest to participate in this auction. There were 14 participants who participated in the bitcoin auction. Barry Silbert and SecondMarket Inc., Pantera Capital, and Kardashev Capital are some of the participants in the auction.

There were 10 blocks of 3000 and 2000 bitcoins that were available for bid. SecondMarket failed to win blocks in the bid, the managing director at SecondMarket said that they bid for every block but they were not successful at all. In the auction carried out last year, SecondMarket won and was anticipating doing the same in this third auction.

BitcoinAlthough bitcoin prices have declined by almost 28% since the last auction, the interest in this currency remains healthy. However, it is anticipated that their prices will increase once the auctions are over.

A total of 173,991 bitcoins were seized during the Silk Road investigation. The U.S.Marshals have successfully sold a total of 130,000 through three different auctions. This means that there are over 44,000 bitcoins that are yet to be sold. The remaining bitcoins will also be sold via auctioning in the near future, however the actual dates have not been released.

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Third Bitcoin Auction Seized From Silk Road

ANNOUNCEMENT: Well it has happened! Another Silk Road Darknet Market has spawned after the demise of Silk Road 2.0. The new site is called Silk Road Reloaded and is utilizing different technology than its predecessors therefore a new guide for Silkroad Reloaded will be coming soon. In the meantime Agora Marketplace is still alive and kicking bigger than ever with more listings than Silkroad 2.0.

>> Click here to find the best alternative: Agora Marketplace. <<

BitcoinsOn Wednesday, the U.S. government said that it is planning to auction the bitcoins seized from Silk Road, the online black market, for the third time. The decision is to auction as much as 50,000 bitcoins. The auction to be conducted by the Marshals Service in the U.S. on March 5, 2015 is the third auction of the seized bitcoins. In an email statement, the Marshals Service said that the winners of the auction will be notified on the next day.

The auction of the seized bitcoins follows the February 4 criminal conviction of Ross Ulbricht, the mastermind behind the Silk Road which according to prosecutors, allowed customers to buy as well as sell drugs and several other illegal goods without the knowledge of the law enforcement agencies. The federal jury in Manhattan found the 30-year old Ross Ulbricht, who ran the Silk Road under the false name “Dread Pirate Roberts”, guilty of enabling approximately $200 million worth of online narcotics dealings using bitcoins. Ulbricht’s website, the Silk Road, was closed down in October 2013.

Bitcoin and Money CashFederal agents had seized 29,655 bitcoins at the time of closing down the Silk Road. The bitcoins seized from the server (buyers and sellers had stored the currency in the server) is worth approximately $7.2 million as of now. The government had seized as much as 144,336 bitcoins from Ulbricht’s computers. This is now valued at $35 million. In January, a judge had ordered that the bitcoins seized from Ulbricht be sold.

According to the Marshals Service, the bitcoins will be offered in blocks each of 2,000 and 3,000 bitcoins. Therefore, there will 10 blocks of 2,000 bitcoins and 10 blocks of 3,000 bitcoins. Bidders who want to participate in the auction must register by March 2, 2015.

The online virtual currency bitcoins has lost as much as 80% of its value after hitting a peak of $1,147.25 on December 4, 2013. On Thursday, the virtual currency was traded at $242 on bitcoin exchanges.

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Former Bitcoin Executive Sentenced To Two Years In Jail

If you want to visit the Silk Road 2.0 then you will want to know that it was shut down by the feds on 5th November 2014 and the alleged operator “Defcon” has been arrested. The best alternative is Agora Marketplace, it actually has more listings than Silk Road 2.0. Silk Road 3.0 is ALREADY live and there will be more info about it here soon.

>> Click here to find the best alternative: Agora Marketplace. <<

Charlie Schrem

Charlie Schrem, the former CEO of bitcoin exchange Bit Instant, a former Bitcoin Foundation vice chairman, and one of the biggest bitcoin advocates, received a two year federal prison sentence on Friday, December 19, for his role in helping to facilitate the conversion of over $1 million, into bitcoins, which were used to trade on the Silk Road, an online drug black market.

Schrem was charged with helping to send money on behalf of an illegal bitcoin trader in January, after the FBI shut down the first Silk Road, an online bazaar, where people could buy drugs, as well as goods and services anonymously. The investigation revealed that Schrem had helped Robert Faiella, also known as BTCKing, who was an illegal bitcoin trader out of Florida, trade over $1 million for bitcoins, which were eventually used to trade on the Silk Road.

BitcoinsIn addition to the two year sentence, presiding judge Jed Rakoff, ordered Schrem to pay a fine of $950,000, after he pleaded guilty to helping Faiella convert cash into bitcoins illegally, in September. Prior to the sentencing, Schrem was facing a maximum five year sentence, with the probation office recommending that he serves a 57 month term. His lawyers tried to argue that Schrem’s actions were that of a young man who didn’t know any better, while the prosecutors argued that Schrem was aware that his actions promoted drug trafficking, but didn’t care.

Schrem also tried to convince the judge not to sentence him to prison, by admitting that he screwed up, and that his arrest has scared a lot of people in the bitcoin trading community straight, and that there is no more illegal activity or money laundering going on. He also told the judge that he would be better off staying out of prison, so he can be out there to make sure that others don’t make the same mistakes that he did. Judge Rakoff didn’t buy the defense’s excuse that Schrem was a young man that didn’t know any better, saying that Schrem excitedly participated in a crime that involved serious violations of the law.

After sentencing on Friday, Schrem was given 90 days to turn himself in, for his prison term, which will begin in March.

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Number of Bidders Declines In Second US Marshals Bitcoin Auction

If you want to visit Silkroad 2.0 then you will want to know that it was shut down by the feds on 5th November 2014 and the alleged operator “Defcon” has been arrested. The best alternative is Agora Marketplace, it actually has more listings than Silkroad 2.0. Silkroad 3.0 is ALREADY live and there will be more info about it here soon.

>> Click here to find the best alternative: Agora Marketplace. <<

United States Marshals (Police)The latest data released by United States Marshals Service (USMS) on the auction of 50,000 bitcoins (BTC) seized from alleged SilkRoad owner Ross Ulbricht states that there has been a decline in the total number of bidders in the second bitcoin auction held on December 4, 2014, compared to the first SilkRoad auction held in June. This data was distributed via email by USMS since it is the agency entrusted with administering sale of confiscated property from federal law enforcement agencies.

BitcoinsA total of 45 registered bidders placing up to 63 bids is what the first Silkroad bitcoin auction experienced apart from the widespread coverage by the US media, which experts depict had a considerable effect on the bitcoin market. When you compare this to December 4th 50,000 BTC auction (roughly $18.6m), where only 11 registered bidders participated in the auction submitting just 27 bids, which was less than half what was submitted on the first auction. Registered bidders decreased by a massive 75% while the total number of bids went down by 57%.

Some of the experts have argued that the low turnout in the second Silkroad bitcoin auction was as a result of the lesser bidding window, which was six hours less (8 am – 2 pm) compared to the 12 hour period issued in June (6 am – 6 pm).

Bitcoin’s investment community earlier came forward to report that the interest in the SilkRoad BTC had declined among its members arguing that the general decrease in complexity when it comes to buying large blocks on open market may have contributed to the lack of interest.

Increased participation by companies in bitcoins bidder syndicates is also considered to be a possible reason for the decline with the December 4th auction having at least 2 syndicates take part. This was less from June’s bitcoin auction. The good news is that the USMS auction had little or no effect on bitcoin price, which went down by almost 1% on CoinDesk BPI. According to the USMS, there is an additional 94,000 Silkroad bitcoins to be auctioned in a few months’ time. The official date is yet to be released.

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The US Marshal’s Service Will Be holding An Auction For 50,000 Bitcoins Seized From Silk Road

If you want to visit Silk Road 2.0 then you will want to know that it was shut down by the feds on 5th November 2014 and the alleged operator “Defcon” has been arrested. The best alternative is Agora Marketplace, it actually has more listings than Silk Road 2.0. Silk Road 3.0 is ALREADY live and there will be more info about it here soon.

>> Click here to find the best alternative: Agora Marketplace. <<

Bitcoin MoneyIt is in the news that the US Marshal will be auctioning 50,000 bitcoins seized from Ross Ulbricht, alleged Silk Road mastermind. The total value of the bitcoins is approximated to be about $20 million. The bitcoins were seized from Ross Ulbricht last year.

The auction is the second to be held by the agency in a span of less than five months. The auction is planned to be held on December 4. The first auction which the agency had carried out before resulted in the sale of a total of 29,656 Bitcoins. All these bitcoins were seized from Silk Road.

In the last sale of the Bitcoins which were seized from Silk Road, investor Tim Draper was identified as the highest bidder.

US marshall ServiceThe bitcoins that were last auctioned was seized from the digital wallets belonging to Ross Ulbrichtin October 2013. In the same time, Ross Ulbricht was arrested in connection to the Silk Road saga. During his arrest by the FBI, he agreed that the US government could sell the Silk Road bitcoins.

The sale of the bitcoins will be split into 2 rounds; there will be an offer of 10 blocks of 2,000 Bitcoins in the first round followed by another 10 blocks of 3,000 in the second round. Interested bidders who will have registered by making deposits of $100,000 will be allowed to have a six hour window on 4th of December to submit sealed bids for the bitcoins.

Just like the first case, all interested bidders will be allowed to disclose their identity and state clearly their connection to the alleged mastermind or Silk Road in general. The registration for the bids has started and will end in December 1st.

During the first auction that was held in June, the agency had promised to keep secret the name of bidders and winners but mistakenly revealed the names. This was due to a confusion that came up when the agency sent the list of the bidders to the interested parties instead of an email which was to inform the bidders about the progress of their bidding.

Although in the conflicting list that the agency sent only contained emails, it was possible to know the names of the bidders because the emails had names of the bidders. A good number of highly reputed people in the Bitcoin community were listed in the bitcoin bidding list.

Silk Road is an online drug marketplace where many people were using it to buy drugs of different types. From Silk Road, people were able to buy different types of drugs while hiding their identity. The alleged mastermind, Ross Ulbricht, is charged with sell of narcotics and computer hacking. The buys were usually made with the use of the digital currency bitcoin. During the time of the arrest of Ulbricht, there were more than $1 billion sales. Ross Ulbricht will be tried in court beginning January 5th and in case he is found guilty he can face up to 30 years in prison or even life prison.

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