NEW YORK (Reuters) – U.S. law enforcement authorities have shut down “Silk Road,” an anonymous Internet marketplace for illegal drugs like heroin and cocaine and criminal activities such as murder for hire, and arrested its alleged owner.
The Federal Bureau of Investigation said Wednesday it arrested Silk Road owner, Ross William Ulbricht, 29, known online as “Dread Pirate Roberts,” in San Francisco on Tuesday, according to court filings.
Ulbricht, who holds an advanced degree in chemical engineering, appeared in federal court on Wednesday and a bail hearing was set for Friday.
His lawyer Brandon LeBlanc, a public defender, declined to comment.
Federal prosecutors in New York charged Ulbricht with one count each of narcotics trafficking conspiracy, computer hacking conspiracy and money laundering conspiracy, the filing said.
“Silk Road has emerged as the most sophisticated and extensive criminal marketplace on the Internet today,” FBI agent Christopher Tarbell said in the criminal complaint.
The site was used by “several thousand drug dealers” to sell “hundreds of kilograms of illegal drugs,” he said.
The site, which has operated since early 2011, also offered tutorials on hacking ATM machines, contact lists for black market connections and counterfeiters, and guns and hit men for sale, according to the charges.
More than 900,000 registered users of the site bought and sold drugs using the digital currency Bitcoin. In recent media reports about the growing popularity of Bitcoin, the Silk Road website has emerged as part of a darker side to the use of digital currencies.
Via: WFB
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