Thursday, October 3, 2013

End of Silk Road: Simple Errors Tripped up "Largest" Internet Drug Market

Borderland Beat
 
Though not directly related to Mexican drug war news, none the less, it is an example of  technology meeting criminality and an element that will be used in the future.  In this case Ulbricht made a couple of dumb mistakes as he initiated his internet drug market, which resulted in his identity being discovered, but overall he developed a sophisticated operation in 13 countries.  In his 2 1/2 year run he managed sales topping 1.2 Billion USD. One wonders what took so long to shut the operation down, A Forbes magazine reporter wrote about the website and his pot transaction from the website in September and how he "got caught"...oh not by law enforcement..by a researcher.  Bitcoin stock took a dive after the bust,  but ultimately it could be a good thing for the company ...Paz, Chivis
 
Ross Ulbricht did some dumb stuff for an Internet criminal kingpin, if FBI allegations are true.
Ulbricht was arrested Tuesday at the Glen Park branch of the San Francisco Public Library and charged with narcotics trafficking conspiracy, computer hacking conspiracy and money laundering. He’s accused of running Silk Road, a so-called hidden website that supposedly allowed users to buy and sell drugs without fear of discovery.
The scheme was pretty shrewd in some respects. According to a criminal complaint, Ulbricht made the Silk Road website (silkroadvb5iz3r.onion, which has since been seized by the Justice Department) accessible only through Tor, a network of computers designed to conceal IP addresses, and its associated anonymizing browser. And he used the digital currency Bitcoin adding a “tumbler” that obscured the sources and destinations of payments.  
From February 2011 to July 2013, the complaint alleges, Silk Road did sales of 9,519,664 Bitcoins and collected commissions of 614,305 Bitcoins – equivalent to $1.2 billion and $79.8 million at current exchange rates. As of Sept. 23, the complaint alleges, there were nearly 13,000 listings for drugs on the site, as well as:
•159 listings under the category “Services” – including offerings of computer hacking targeting Facebook, Twitter and other social media, tutorials on hacking ATM machines, and a listing for a “HUGE Blackmarket Contact List” that included “Hitmen (10+ countries).”
•801 listings under “Digital goods” – including pirated media, hacked accounts at Amazon, Netflix and other online services, and plenty of malicious software to buy.
•169 listings under “Forgeries” for fake driver’s licenses, passports, Social Security cards and more.
So it was a going concern. But what tripped up its proprietor?
Ulbricht used his real name and gmail account in forum threads that appeared to be associated with setting up Silk Road, the FBI alleges.

Here’s what happened, according to the court documents:
In January 2011, someone using the name “altoid” posted in a forum at www.shroomery.org what appeared to be an attempt to publicize Silk Road. A similar post was made a couple days later at bitcointalk.org, also by a user called “altoid.”

Eight months later, on Oct. 11, 2011, someone calling themselves “altoid” posted on the Bitcoin Talk forum seeking an “IT pro in the Bitcoin community” to hire for a “venture backed Bitcoin startup company.” The complaint says the responses were to be sent to … wait for it … “rossulbricht at gmail dot com.”

From there, investigators found his Google+ profile, his LinkedIn profile and YouTube videos that he favorited. Many of the videos originated at the website of the “Mises Institute,” which bills itself as the “world center of the Austrian School of economics.” On that site, the FBI alleges, was a profile for “Ross Ulbricht.”


The criminal complaint alleges that Ulbricht is the “Dread Pirate Roberts” or DPR, the person running Silk Road. DPR’s user signature on Silk Road’s forums also included a link to the Mises Institute website, the FBI says. DPR cited the “Austrian Economic theory” and the works of economists associated with the Mises Institute as “providing the philosophical underpinnings for Silk Road,” it said.
An investigator said in court documents that he traced the IP address Ulbricht was using to log into his Google account to the address of a friend he was staying with in San Francisco. And someone who logged in to the Silk Road server did so through an Internet café on Laguna Street, less than 500 feet away from the friend’s address on Hickory Street, the investigator said.
Ulbricht also used his real name on stackoverflow.com, a computer programming forum. The FBI alleges that Ulbricht created an account there under his real name and gmail account, then posted a message that allegedly indicated he was “writing a customized computer code designed for a web server operating a Tor hidden service, such as Silk Road.” 
Ulbricht had an initial appearance in court Wednesday, and a bail hearing was set for Friday, The Associated Press reported.
Silk Road UlbrichtCriminalComplaint the largest internet drug trafficking operation


Silk Road Ulbricht Post Complaint Protective Order
 
Associated Press and NBC News

72 comments:

  1. I knew this website wasn't gonna last I heard bout it and right away thought it was shady!

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  2. Retarded white boys mom blew the whistle what kind of moron orders heroin online

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  3. Anyone dumb enough to mix drugs x internet x shipping drugs to anyone x receiving drugs shipped from anon sources = deserves what he gets ! In this day and age the internet is a bust ! figure it out , or reap the consequences ! It is really amazing to me how far in life common sense will take you , and how many people still refuse to use this little nugget of truth - Common Sense it's really all you need to get ahead in life, try it sometime it just might save your ass !

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  4. Hey Chivis, another one bitcoin the dust! lol. It has everything to do with the cartels since its their product that was being peddled on the Internet. Ross Ulbricht, DPR, Internet kingpin found a way for drug users and drug dealers to carry out criminal transactions while evading law enforcement. But as is the case with your traditional drug dealers, who also got caught. t was only a matter of time before law enforcement utilized technology to bust him. As is the case with all major busts, the government will end up with all the money/assets that others worked hard for.

    It's interesting how Dread was inspired by the Austrian School of Economucs. The Austrians were the best NAZIS during the rule of the Third Reich. Hitler himself was an Austrian. The Austrians are ethnic Germans. Why would a guy who thumbed his nose at the U.S.A. authorities while championing civil liberties/libertarian ideals draw inspiration from a culture that at one point in history championed a police state.

    ReplyDelete
    Replies
    1. 7:08 you have started somping! an EAGER BEAVER has jumped up confusing you with me,maybe you wanna jump into it and set somebody "estrait".
      When your comrade falters and stumbles,it' is your duty and an honor to pick up his fallen standard...to pick up FALLEN STANDARDS is quite another thing!.
      DEDICATED TO:EAGER BEAVER.

      Delete
  5. Atlantis, Farm to Market, Blackmarket Reloaded your next. Dread Pirate Roberts was even beginning to act like a cartel boss. He hired an undercover cop posing as a hitman inorder to go kill a guy trying to extort money out of Canada. A couple in England started washing drug proceed money utilizing a digital currency operation. Sounds like organized crime to me.

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    Replies
    1. a snitch,snitches on the partners,out of greed,for a better deal,to steal the business,when you know something and want to share,you are just reporting,and if you are a victim of or a witness to a crme and don't report or take steps against the peeps you are a pendejo!(a dumbass fool)!

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  6. Reminds me of the dumb ass Zetas naming there horse " number 1 cartel". this was a pretty good idea! I don't think Russ thought it would get that big and would not receive much attention..

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    Replies
    1. You are very ignorant. the name cartel for a horse means what bloodline they come from it yas nothing to do with drug cartels. same word but two totally different meanings. the fact that the zetas owned these horses is just ironic

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    2. you are very ignorant and naive,the zzzetas in their infinite stupidity tought everyone else was dumb stupid and naive,still the rich but broke elite of the quarterhorse community in the us despised them chundaros,and now they got their horses the money and the ranch,and best of all they are not going to prison and that's for sure. If it's about the bloodline,z40 would be the that sired coronita cartel? horse lover?

      Delete
  7. Replies
    1. We've just located your location

      Delete
    2. Obama is watchin'...even if your phone is off and without battery it can be remotely activated,the mics are on and the cameras the satellites above are watchin'your and everybody's moves,registering your every fart,beware!

      Delete
  8. Been following this story since it broke. Very interesting stuff. The guy is a genius if you ask me, but like all criminals, stupid at the same time. His luck ran out, as it always does. And now he's in the slammer. Hope he gets a real job when he gets out, and applies his ingenuity to something positive...however doubtful

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  9. @ first comment, what are you retarded? The Austrian school of economics isn't the same thing as Austria the nation. You know how you have ideas that are stupid, but that doesn't make all Americans stupid? It's sort of the same way with this. And most of the leaders of the Austrian school were/are jewish.

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    Replies
    1. Hitler was half jewish!

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    2. and he did not go to school either,he was just the loudest barking dog,caught everybody unaware,and by sheer willpower dragged the german to hell, against their better judgement,his propaganda machine turned everybody into sheep,and a small minority into the rulers of the country,the results are well known

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  10. austrian economics can not equal police state that is like calling libertarians racists

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    Replies
    1. libertarians,guns Bibles,kukluxklan,no ideology other than hate and contempt against lesser men,hate for the president for being black and refusing to agree to be the house boy,to be good to Whitey and do as told,and he is expected to be ready and accept blame when things get fucked uplike the wipping boy he is supposed to be...libertarians without billions of dollars are nothing but brainwashed robots of the rich,tools never become rich,they just useful till broken,libertarians...my ass!

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    2. 11:509 australian school of economics' their prophet missusas and their apostles on the party of the teabaggers,ALEC,and assorted corrilegionaires have coopted police departments all over the us,making all kind of laws to stick it to the citizenry,if you see new police stations around,you know where they came from,and it is all legal!the production of crime and criminals goes on unseen,unheard of,and lastly but not leastly unspoken... DEDICATED TO:EAGER BEAVER

      Delete
  11. true.
    brilliant and insanely stupid - all at the same time.
    well, can't feel sorry for him.

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  12. Why the hell would he work in america as a drug lord what a moron i would be doing my business like this somewhere in eastern europe cuba cayman islands

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  13. It's interesting how Dread was inspired by the Austrian School of Economucs. The Austrians were the best NAZIS during the rule of the Third Reich. Hitler himself was an Austrian. The Austrians are ethnic Germans. Why would a guy who thumbed his nose at the U.S.A. authorities while championing civil liberties/libertarian ideals draw inspiration from a culture that at one point in history championed a police state.

    The Austrian school of economic theory has nothing to do with Hitler and the Nazis. That's like associating chinese food with Mao and the CPC, or vodka with Stalin. Milton Freidman and Rand Paul promote the Austrian school of economic theory, do you consider them Nazi sympathizers, too?

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  14. Fuck I was waiting for his cyber Monday sales! LoL

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  15. What the Heck,
    Is that Walter White Jr.? I always knew he was going to take over his pops "Heinsenberg" business. LoL

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  16. He got arrested a block away from my house.

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  17. I see you don't post my comments. well Fuck you the chivis this blog is fucking wack anyways always the same shit the other ones put way better shit

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    Replies
    1. @5:03 p.m get the f@#k outta here then and leave chivis alone!! She is very informative and interesting and if u dont like it find some other site to go to and leave the rest of us alone who enjoy reading it! I doubt seriously if she loses any sleep over losers like you!!

      Delete
    2. 8:07 I was about to defend mi chivis and you got in the way,bet the@#$% out of here!chivis we LOOOVE YOU!don't pay attention to assholes,he is anonymous but you know where to find his ass

      Delete
    3. Chivis sicarios greatly outnumber her detractors,so there!

      Delete
  18. @3:52
    wasn't that the greatest finale of all time? I just heard that blue meth and another color is the preferred meth off screen as well.

    ReplyDelete
    Replies
    1. Chivis the greatest finale of all times is ....
      MY DEAR I DON'T GIVE A DAMN . . . from gone with the wind.that was not the tantrum of a little mama's boy,while fiction, it is worth keeping in mind(it has served me very good a few times,even improved it)pay no heed to the crack babies,your fans love you chivaaaa!!!!!!

      Delete
  19. All it takes is for one bigot to let loose with some "reverse" racism "retarded white boy" comment, and another genius to try and equate Austrian Economics with an infamous Austrian Jew named Adolph and the blogging runs way off the topic of the article. In this case I don't know which is worse; the junior college drop-out who feels totally justified in expressing bigotry toward all white people in general, or all the reactionary comentators who HAVE to chime-in with their two cents long after the ignorance was laid to rest by the first rebutal. So, back on topic, kudos to Bitcoin! Now if some people would spend more time researching their opinions before they blurt ignorance, then we'd only have to deal with getting the overzealous know-it-alls to stop showing off how much they know of Mr. von Mises's school of Economics..

    ReplyDelete
    Replies
    1. Try Mexico informado.com

      Delete
    2. was hitler the illegitimate Jewish son of an Austrian Jew? that seems to be the dominant factor,hate the father for making you a sonofabitch and making everybody pay for it...

      Delete
  20. Que ondas Chivis,
    Yes wasn't it a great ending "Jesse" turned out to be the last man standing! It was crazy how Walt in the end took a last tour in the cook lab, smiled and then collapsed! on another note: Keep up the good work on informing us! van aver jente celosa that might put stupid shit every now and then to try and put you and this site down! But in the end, I don't see their sorry asses doing anything to keep us informed. Great Job Chivis!

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  21. Cant stop wont stop. They are already trying to rebuild the site

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  22. Being that he is jewish by definition he isn't "white" but he has done in two years what your national hero chapo has taken 30 yrs to amass and, and, he never even had to touch any of those drugs, he just ran the site, all the other vendors sold on his site and they sent the packages to drop addresses, its no riskier than driving the shit across the border or walking through the desert with 100 lbs strapped to your back in fact, this method is way more sophistocated..

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    Replies
    1. Nos his 'sophisticated ase is gonna do Some los tech time. LOL!

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    2. And his software will turn someone's hardware on...

      Delete
  23. Wow now you can clearly see mexicans natural tendency towards racist remarks yet if "white" boys were bagging on someone was stupid because of their being mexican you would see the whole board start to cry. These sites are just the begining and it was the alpha test in a way next comes the beta tests, so it looks like since freedom hosting went down there seems to be a whole slew of these internet enterprise type busts, last week with the Rambo guy...

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  24. 8:46PM
    Thank you for the nice words.

    lil Jesse...yeah well I was wrong as I predicted his death, me and my family all laid out theories of 'the end'. I am happy to have been wrong. I loved Lydia's ending "are you having symptoms of flu?" great makeup throughout.

    ReplyDelete
  25. He was smart and stupid just see the numbers he was getting paid. Stupid to be living in the states people bit coins are way more better than dollars if a hacker doesn't jack your coins..Great job chivis I'm not complaining but the site had been slacking info if anything we can do to help.. we appreciate your work

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  26. What happened to all the reporters

    ReplyDelete
    Replies
    1. They got in'n out,thank you ma'am.and for the bitcoins,the government was in on it from the start,they just wait for the money to accumulate and bam! Just one more example that crime doesn't pay,no matter how smart the criminal...next!!!

      Delete
  27. As of late i have seen a "pink meth" its not like bright pink but like a soft pink, lol soft pink

    ReplyDelete
  28. All it takes is for one bigot to let loose with some "reverse" racism "retarded white boy" comment, and another genius to try and equate Austrian Economics with an infamous Austrian Jew named Adolph and the blogging runs way off the topic of the article. In this case I don't know which is worse; the junior college drop-out who feels totally justified in expressing bigotry toward all white people in general, or all the reactionary comentators who HAVE to chime-in with their two cents long after the ignorance was laid to rest by the first rebutal. So, back on topic, kudos to Bitcoin! Now if some people would spend more time researching their opinions before they blurt ignorance, then we'd only have to deal with getting the overzealous know-it-alls to stop showing off how much they know of Mr. von Mises's school of Economics..
    October 3, 2013 at 5:29 PM

    Now you're name dropping.
    Also, there's a delay while BB approves the post. That's why they trickle in.

    ReplyDelete
    Replies
    1. Von Muses school of economics?I'll wiki it, BB is getting much too full of geniuses,I in my infinite ignorance do not understand how come with so many schools of economics,doctors in history,accounting business,etc. the geniuses are so busy laundering money,plundering their banks and bankrupting whole countries making wars over imaginary weapons of mass destruction and the world is in a worse mess day after day? is it that something is wrong with me?,

      Delete
  29. Que ondas Chivis,
    Yes wasn't it a great ending "Jesse" turned out to be the last man standing! It was crazy how Walt in the end took a last tour in the cook lab, smiled and then collapsed! on another note: Keep up the good work on informing us! van aver jente celosa that might put stupid shit every now and then to try and put you and this site down! But in the end, I don't see their sorry asses doing anything to keep us informed. Great Job Chivis!
    October 3, 2013 at 8:46 PM


    I've been out of town and had to record it and plan on watching tonight, thanks for spoiling it for me. You would thing Hollywood would put together a hard hitting series on a cartel family.

    ReplyDelete
  30. jeeze 9:56 I AM sorry!
    Trust me what has been written will not spoiled it for you at all, most people knew Jesse would survive, HOW he survives is the big story. Honestly nothing was ruined.

    About the cartel series, I thought about that, and I think the Zetas and Trevinos would be a good series, there are endless elements. If one takes Chapo's story it really stops after the prison break, comparatively speaking. Zetas has more of that family storyline, the horseracing, the drones, the new baby who was instrumental in the capture, Lazca's death, stolen body. etc etc.

    ReplyDelete
  31. Thank you for your support.. I really don't pay much attention to the haters, I posted his/her comment so maybe he can move along now.

    Trust me folks I know we have been a bit weak this past 10 days or so. Truth is Tijuano and me are having a bit of illness getting in the way of personal progress. We both have surgeries coming up. Keep sending good thoughts our way. My surgery is the 24th of this month. Tijuano's hopefully soon.

    We do have some good stuff coming this weekend. Vato has a great Zeta article, and me and Havana are posting one or more posts from the courtroom, and I have the Don Alejo article almost finished.

    I wanted to post my Dr. Mierles post, but unfortunately the paypal and website to donate have disappeared. all in a couple of weeks :( I don't know why, but I do have his office number and personal office email, so next week I will contact him to get information directly from the man himself. I may get the courage to ask for an interview.. paz, chivis

    ReplyDelete
    Replies
    1. Dissapeared?someone doesn't like revolutionaries,really.if you get there chiva,make sure to take help along,and make a lot of propaganda,as soon as possible,pena nieto must be up to
      something,you have no idea how evil the Mexican government really is and how adept to use their mighty powers against the proles.Dr mireles needs a lot of help,all the bloggers need to send a very strong message in the us about where we stand before the mex-robbernment do any of their stupid shenanigans!!!

      Delete
    2. Chivaaa!(new name,you like it?) when you feel sick eat tacos and nopales,it won't cure you but you will feel much better...
      Atentamente
      El Chapo.

      Delete
  32. Pinche walters white son estava pesado haha

    ReplyDelete
  33. I bet some badass lawyer jumps in on his defense, they pushed his bail hearing a bit farther out, most likely they have to find someone that can understand what exactly went on and how these open networks and bit-coin works.
    I was thinking this is just a symptom of modern society, where no one wants to go out and meet people and all that. Anyway all cell signals are recorded tracked and stored somwhere, my question is , how can they gather this much info but yet mexico seems hopeless to track the digital signals of those demons who capture and uplaod all those decap's onto blog del narco, sites like that, i mean they dont even use the deepnet for that shit, they just use the surface web for that shit. Why can't mexico do anything to solve that shit??

    ReplyDelete
    Replies
    1. General naranjas is working on it,but Carlos slim calls the shots,decaps etc are a side business of his and Carlo salinas de gortari's
      s anyone knows king juan Carlos de borbon killed his brother that was to be king ahead of him?or that Carlos Salinas de gortari shot dead a house servant when he was 5 years old? "Evil starts young

      Delete
  34. We would greatly appreciateit Chi is wish you the best of health to you and your staff. I just read a lot and turn to ur website because of the great work .

    ReplyDelete
  35. And what? they're rebuilding it and we still have Atlantis, black market reloaded and indipendent encrypted sellers. How's that war on drugs working for you murrica? This just proves that there is no invincible State, the Cartels have proven that before and now the deepweb will do. FUCK YOU DEA YOU GUYS WILL ALWAYS FAIL FROM NOW ON.

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    Replies
    1. I hope they legalize it and control it tax it and strictly regulate it like big pharma does it.take the profit way out of it for them bastards at least pharmaceutical companies dont make decap videos!!

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    2. The death just waits til the money is there and bam! NEXT! and they always have other games going and other horses running,even cockroaches races are not safe,you just have to respect a worthy foe,no?

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    3. 7:31 THE DEA. They and Obama lissenin and watching ar erry move.
      Chivis the dread pirate to Roberts would be johnny deep? And you've been talking about breaking bad?sorry,guess I am out of it...but I looove youuu!!!

      Delete
  36. The dude got lazy. This kind of job can be done. It's all about IQ

    ReplyDelete
  37. libertarians,guns Bibles,kukluxklan,no ideology other than hate and contempt against lesser men,hate for the president for being black and refusing to agree to be the house boy,to be good to Whitey and do as told,and he is expected to be ready and accept blame when things get fucked uplike the wipping boy he is supposed to be...libertarians without billions of dollars are nothing but brainwashed robots of the rich,tools never become rich,they just useful till broken,libertarians...my ass!
    October 4, 2013 at 1:33 PM

    So how's it going in Havana and Caracas now days?

    ReplyDelete
    Replies
    1. They are holding on,thank you,and Nicaragua,Chile,Bolivia,Iran irak,China etc.they doing pretty well too,with the help of the us oligarchs that have the us on its knees begging for loans and help,after 30 years of trickle down bullshit that nobody believes anymore,the rich went global,the us
      is fast becoming a third world failing economic power,that is the fruits of an inside job like no other...

      Delete
  38. "Anyone dumb enough to mix drugs x internet x shipping drugs to anyone x receiving drugs shipped from anon sources = deserves what he gets !"

    You're so lost. People have been doing this before SilkRoad and continue to do it without detection.

    ReplyDelete
  39. They are holding on,thank you,and Nicaragua,Chile,Bolivia,Iran irak,China etc.they doing pretty well too,with the help of the us oligarchs that have the us on its knees begging for loans and help,after 30 years of trickle down bullshit that nobody believes anymore,the rich went global,the us
    is fast becoming a third world failing economic power,that is the fruits of an inside job like no other...
    October 7, 2013 at 10:45 PM

    All great places to live, don't understand why the citizens of those fine nations leave and come here, do you? They must be really stupid, right?

    ReplyDelete
    Replies
    1. A few ambassadors,most Chinese stay behind,somebody has to keep earning to build China 's new atomic submarines to help north Korea, Iran etc,etc

      Delete
  40. Von Muses school of economics?I'll wiki it, BB is getting much too full of geniuses,I in my infinite ignorance do not understand how come with so many schools of economics,doctors in history,accounting business,etc. the geniuses are so busy laundering money,plundering their banks and bankrupting whole countries making wars over imaginary weapons of mass destruction and the world is in a worse mess day after day? is it that something is wrong with me?,

    You keep stepping in it and now you've tracked it all over the house, June Cleaver is going to be pissed. If you're going to name drop Ludwig von Mises at least you should know that he would be opposed to all the things and events you mentioned. He was not a crony-capitalist.

    ReplyDelete
    Replies
    1. That is why I'm gonna wiki it TOMARRA,it may be the solution to all the world's problems and mine,pretty interesting,I'm picked and curious,thanks for the help

      Delete

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