Silk Road Founder Arrested While Bitcoins Plummet

Silk Road 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 site that is live-streaming.

It’s been quite a week for Bitcoins within 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 evidently understood to the feds a little more intimately as Ross William Ulbricht- plus the seizure and power down of this Silk Road site itself. Silk path was an exclusively Bitcoin gambling site, well-known to numerous being an open marketplace for illegal drugs and much more; the site’s just under a million registered users were frequently money launderers, according to the arrest warrant.

‘Based on my training and experience, Silk Road has emerged as the most advanced and extensive criminal marketplace on the online world today,’ FBI Special Agent Christopher Tarbell noted in the complaint. Tarbell added that in the past 2 1/2 years, Silk Road generated some $1.3 billion worth of comparable Bitcoin trades and netted $85 million in commissions for itself, frequently for things as macabre as employing hitmen, seeking out computer hackers or purchasing weapons that are illegal.

Major Rate Volatility Ensues

Meanwhile only a few days after the shut down of the web site by the feds and the arrest of Ulbricht Bitcoins themselves went through some Cat-5 volatility, when the rates for the digital currency dropped from $139 per Bitcoin to $109.71 per Bitcoin in just under three hours. Continue reading