Silk Path Founder Arrested While Bitcoins Plummet

Silk Path Founder Arrested While Bitcoins Plummet

Bitcoins are in the news, between the shut down of Silk Road,a plummet in exchange rates, and a new live-streaming site.

It’s been a significant week for Bitcoins in the news; a triple whammy, actually.

First, there was the arrest by the FBI of Silk path’s founder known online only by his 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 was an exclusively Bitcoin gambling site, well-known to many being an available marketplace for illegal drugs and much more; the web site’s just under a million registered users were usually cash launderers, based on the arrest warrant.

‘Based on my training and experience, Silk Road has emerged as the absolute most advanced and extensive criminal marketplace on the web today,’ FBI Special Agent Christopher Tarbell noted in the grievance. Tarbell added that in 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, looking for computer hackers or purchasing weapons that are illegal.

Major Rate Volatility Ensues

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