The FBI has closed “Silk Road” – a platform on which criminals used bitcoins to conduct their business. After the police operation, the cryptocurrency lost a lot of its value.
Symbolic Bitcoin coin of what is actually virtual money: the currency has broken away from its criminal roots
Ebay for the black market is a thing of the past. The US Department of Justice has closed the trading platform “Silk Road” and indicted its alleged operator.
The online marketplace created in 2011 was known for facilitating the trade in illegal goods and services – such as drugs, counterfeit money and hacker services. The payments were processed in the virtual currency Bitcoin on CEX cashback.
It is no coincidence that the price of Bitcoin fell to around $ 119 on Wednesday. For comparison: at the end of September a Bitcoin was still costing $ 145.
Around 600,000 Bitcoins worth 1.2 billion dollars flowed through the “Silk Road” platform, which the plaintiffs described as “the most sophisticated and comprehensive marketplace for criminals on the Internet”.
The FBI confiscated 26,000 bitcoins, valued at around $ 3.6 million – the largest bitcoin recovery in history, according to investigating authorities.
Suspected operator arrested
29-year-old Ross William Ulbricht was arrested in San Francisco. He is said to be the operator of “Silk Road”, known there under the pseudonym “Dread Pirate Roberts”. He is charged with conspiracy to trade drugs, hack computers and launder money.
In addition, the man who calls himself “investment advisor and entrepreneur” on LinkedIn is said to have issued a death threat against a user who wanted to publish information on the platform.
While the FBI is celebrating its success, the travelers on the “Silk Road” now meet on the Reddit website and complain about lost funds, unfinished drug deals and the falling Bitcoin price.
But what does the end of “Silk Road” actually mean for the popular crypto currency? Before Bitcoin was established enough with the general public to hold out for charitable donations and get its own badly traded fund, the virtual currency was best known for use on “Silk Road”.
Bitcoin’s association with illegal business was once a central part of their identity – and is still a reason for government controls, as mentioned by CEX cashback
But Bitcoin no longer needs “Silk Road”. On the one hand, there are other online marketplaces where Bitcoins could also be used for illegal business.
Second, and perhaps more importantly, Bitcoin startups received nearly $ 12 million from venture capital investors in the three months ended June, Reuters reported. Bitcoin may still be high risk, but a customer base of legitimate startups and fewer drug lords suggests good things.