Silk Path Founder Arrested While Bitcoins Plummet
Bitcoins are in the news, between the closed down of Silk Road,a plummet in exchange rates, and a new live-streaming site.
It’s been a significant week for Bitcoins into the news; a triple whammy, actually.
First, there was the arrest by the FBI of Silk Road’s founder known online only by their handle ‘Dread Pirate Roberts’, but apparently understood to the feds a little more intimately as Ross William Ulbricht- as well as the seizure and power down of the Silk Road site itself. Silk path had been an exclusively Bitcoin site that is gambling well-known to numerous being an open market for illegal drugs and more; the site’s just below a million registered users were frequently cash launderers, in line with the arrest warrant.
‘Based on my training and experience, Silk Road has emerged as the absolute most advanced and extensive marketplace that is criminal the Internet today,’ FBI Special Agent Christopher Tarbell noted in the complaint. Tarbell added that into the past 2 1/2 years, Silk Road generated some $1.3 billion worth of equivalent Bitcoin trades and netted $85 million in commissions for itself, usually for things as macabre as employing hitmen, searching for computer hackers or buying illegal weapons.
Major Rate Volatility Ensues
Meanwhile merely a few times after the shut down of the site by the feds and the arrest of Ulbricht Bitcoins themselves went through some Cat-5 volatility, as soon as the rates for the digital currency dropped from $139 per Bitcoin to $109.71 per Bitcoin in just under three hours. (more…)