So what happens to Bitcoin now? | Page 2 | TigerDroppings.com

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TH03
Notre Dame Fan
Member since Dec 2008
98837 posts

re: So what happens to Bitcoin now?


quote:

I thought it wasn't possible for this to happen?


if they seized the site, they likely seized the bitcoins that were in the site's escrow account, which is money held by SR until confirmation of delivery is made then released to the vendor.

possibly even bitcoins in user's wallets on the site as well






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TH03
Notre Dame Fan
Member since Dec 2008
98837 posts

re: So what happens to Bitcoin now?


quote:

Probably because he converted most of it to usable currency and has it hidden away in cash somewhere. Or in an offshore bank account.


or just in a bitcoin wallet they can't get into

quote:

You know, those things you said bitcoin was superior to...


you know, it pretty much is






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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: So what happens to Bitcoin now?


quote:

This is why I don't buy the theory that you can just technology your way out of any problem. Technology won't change the fact that, inevitably, people frick up.


yea, you're right about that.







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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: So what happens to Bitcoin now?


quote:

you know, it pretty much is


don't waste your time with LSURussian. he's just trolling






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TH03
Notre Dame Fan
Member since Dec 2008
98837 posts

re: So what happens to Bitcoin now?


from /r/silkroad, a good summary:

quote:

I'm currently reading through the criminal complaint[1] , which covers a lot of things worth noting with regard to how and why DPR got caught.
This has been a joint operation run the cybercrime squad within the FBI's New York field office. It involved the FBI, DEA, IRS and Homeland Security's investigative unit.
---
It's unstated from when the investigation started, but they received a complete copy of the Silk Road web server on the 23rd of July 2013. This was all done under the Mutual Legal Assistance Treaty, which implies that they had access to current site information up until the point they shut the site down.
This included user account and transaction information. It's unclear whether or not this covers addresses and other sensitive transaction information.

**This also apparently covers at least 60 days worth of messages from the period where the site was copied.
From February 6, 2011 to July 23 2013, 9,519,664BTC was generated in sales, 614,305BTC going directly to DPR in the way of "commissions". This comes to a total of 1,229,465 transactions.
Based on the copy of the site which the FBI received, they believe DPR to have been the sole operator and owner of SR, handling all aspects of the site himself and delegating only user affairs to appointed moderators.
---
In March of this year, a SR user/vendor called "FriendlyChemist" attempted to extort DPR via SR's private message system, providing proof that he had the names/addresses of thousands of vendors/users after having allegedly hacked a bigger vendor. He demanded $500,000USD, saying that he needed the money to pay off his supplier. DPR then stated that he wished to speak to FriendlyChemist's supplier.

A user called "redandwhite" then proceeded to contact DPR, stating that he was FriendlyChemist's supplier and also the owner of his debt. DPR then solicited redandwhite to "execute" FriendlyChemist, supplying redandwhite his full name and address. After having agreed on terms, DPR sent redandwhite approximately $150,000USD (1,670BTC) to have FriendlyChemist killed. redandwhite later provided photographic proof of the alleged murder.

Investigators could not find any record of somebody in that region being killed around that date or matching that description. This possibly implies that DPR was duped/scammed, but, DPR is also quoted as having told redandwhite the following: "Not long ago, I had a clean hit done for 80k."
---
DPR has been identified as Ross William Ulbricht.

> "He is 29 years old, graduated from the University of Texas with a Bachelor of Science degree in Physics in 2006. From 2006 to 2010, he attended graduate school at the University of Pennsylvania School of Materials Science and Engineering."
His LinkedIn profile is at: LINK ]

Now, onto how he got caught...

An agent involved in the investigation ("Agent-1"), found the first few references to SR on the internet from somebody only identified as "altoid", attempting to promote the site in its beginning days, in January of 2011.

In October of the same year, a user also going by the name of "altoid" made a posting on Bitcoin Talk titled "a venture backed Bitcoin startup company", which directed interested users to "rossulbricht at gmail dot com".

That email address is what led to DPR's downfall.
---
After identifying "altoid", they started connecting the "DPR" identity to Ulbricht pretty quickly.

Ulbricht's Google+ page and YouTube profile both make multiple references to the a website dubbed the "Mises Institute". DPR's signature on the SR forums contained a link to the Mises Institute.

DPR cited the "Austrian Economic theory" along with the works of Ludwig von Mises and Murray Rothbard, all of which are closesly associated with the Mises Institute.

Server logs show that someone logged onto the SR administration panel from San Fransisco around the same time that Ulbricht was staying in San Fransisco.

Multiple fake IDs were intercepted by U.S. Customs & Border Patrol while on their way to an address which Ulbricht was living at the time. These IDs all carried photos of Ulbricht but had false names and details. This was around the same time that DPR stated in a message that he was acquiring some fake IDs to buy new servers.

When questioned by Homeland Security about the fake IDs, he refused to answer any questions but then stated that anyone could purchase such things using "Silk Road" and "Tor".

The address which Ulbricht was staying at was being rented in cash and he was living with housemates who knew him under a name which corresponded with one of the fake IDs.






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
84281 posts

re: So what happens to Bitcoin now?


quote:

Probably because he converted most of it to usable currency and has it hidden away in cash somewhere. Or in an offshore bank account.



or just in a bitcoin wallet they can't get into
Your link says he was paying his rent in cash. Do you think that cash was in bitcoins?

quote:

you know, it pretty much is
I know it pretty much isn't.






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
84281 posts

re: So what happens to Bitcoin now?


quote:

don't waste your time with LSURussian. he's just trolling

Translation: "Russian and several other posters on this board predicted this would happen and I was wrong when I said it wouldn't happen which is really, really embarrassing since I called all of them dumbasses many times. Now it's obvious I'm the dumbass so I'll just continue to call them trolls. "






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southernelite
McNeese State Fan
New Orleans
Member since Sep 2009
41802 posts

re: So what happens to Bitcoin now?


Did you ever figure out how to short that bitcoin, Russian. If so, you're making serious money right about now.






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
84281 posts

re: So what happens to Bitcoin now?


The only sites I found which allow shorting btc are as flaky as btc itself.

I have a higher personal net worth than the capitalization of two of them I researched.

So.....no.






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TH03
Notre Dame Fan
Member since Dec 2008
98837 posts

re: So what happens to Bitcoin now?


quote:

Your link says he was paying his rent in cash. Do you think that cash was in bitcoins?


so using cash for rent obviously means all of his net worth is cash

quote:

I know it pretty much isn't.


OMG it's gone down $15 today, IT'S OVER






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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
57256 posts

re: So what happens to Bitcoin now?


We could have been gazillionaires. But we opt for the sure thing of shame.





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
84281 posts

re: So what happens to Bitcoin now?


quote:

so using cash for rent obviously means all of his net worth is cash

No, but it shows he converted some of it to cash and if the Feds haven't found a cash hoard yet (which nothing about that is mentioned on the articles linked thus far), then the cash hoard is still waiting to be found. Although I suspect the guy was tech savy and dishonest enough to distribute his 'real' currency holdings to numerous internet banks under false ID. Those will be located in time.

quote:

it's gone down $15 today, IT'S OVER
More like $30 (approx. -25%) on Mt Gox and $50 on btc-e (approx. -40%) and all of this is happening while the Orientals are asleep. Just wait until they wake up and check the news.







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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
84281 posts

re: So what happens to Bitcoin now?








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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: So what happens to Bitcoin now?


Almost started a thread on this the other day but decided against it:

Bitcoin Investment Trust: A private, open-ended trust invested exclusively in bitcoin and derives its value solely from the price of bitcoin.

Investment Trust Lets Investors Own Bitcoins Indirectly

Bitcoin Investment Trust Launches on SecondMarket



Yet more mainstream acceptance of Bitcoin. But I'm sure you and the rest of the haters will find some way to bitch about it.






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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
57256 posts

re: So what happens to Bitcoin now?


quote:

But I'm sure you and the rest of the haters will find some way to bitch about it.


No I understand that there are some people who are willing to accept it whole heartedly. Not recognizing that would be dumb.






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boosiebadazz
Member since Feb 2008
46083 posts

re: So what happens to Bitcoin now?


For the record, I don't "hate" on it. I think the technology is interesting, but I don't see it being as ubiquitous and revolutionary as you do.





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
84281 posts

re: So what happens to Bitcoin now?


From your third link:

quote:

SecondMarket has also made a $2 million seed investment in the BIT.


A tiny, almost insignificant amount to be considered "mainstream acceptance."

After today's drop, I wonder if they lost 30-40% of their fund's value? Hmmmmm???






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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
57256 posts

re: So what happens to Bitcoin now?


Paper loss



Or whatever the fairy dust equivalent is.






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
84281 posts

re: So what happens to Bitcoin now?


In case you missed it in one of wiki's links, SecondMarket Holdings, Inc. specializes is purchasing distressed assets at huge discounts and liquidating them. Bitcoin seems to fit their niche today.

But at least they are honest about btc in this quote from their CEO: “However, bitcoin also faces regulatory uncertainty and widespread adoption issues that make investing in bitcoin a highly risky endeavor.






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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
57256 posts

re: So what happens to Bitcoin now?


Sounds like a corporate raider. Sorta





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