Julius Skrrvin
I be winkin' through the scope
http://www.nytimes.com/2014/01/19/business/eagle-scout-idealist-drug-trafficker.html?_r=0
Eagle Scout. Idealist. Drug Trafficker?
By DAVID SEGALJAN. 18, 2014
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Ross Ulbricht is accused of being the mastermind of Silk Road, the world’s largest and most notorious black market for drugs.
The goal of the arrest, at 3:15 p.m. on Oct. 1, 2013, was not simply to apprehend Mr. Ulbricht, but also to prevent him from performing the most mundane of tasks: closing his laptop. That computer, according to the F.B.I., was the command center of Silk Road, the world’s largest and most notorious black market for drugs. In just two and a half years, the government says, Silk Road had become a hub for more than $1.2 billion worth of transactions, many of them in cocaine, heroin and LSD.
The site was like an eBay for the illicit, celebrated by drug enthusiasts, denounced by United States senators and stalked by four federal agencies. But because it was run on Tor, an encrypted Internet network, and because it merely connected buyers and sellers — rather than warehousing any products — it seemed to operate in a vaporous cloud. It was a business without infrastructure, other than a few servers and that laptop, which on 3:14 that October afternoon sat on a library desk, open.
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Fake ID cards that the government says were ordered by Ross Ulbricht. The government says they were found in a package addressed to the group house where he lived in San Francisco and were intercepted by Customs and Border Protection. The United States attorney’s office redacted some information on the IDs. United States Attorney's Office, Southern District of NY
Had Mr. Ulbricht seen the F.B.I. coming, and simply closed the laptop, password protections probably would have kicked in, turning the hard drive into what Nicholas Weaver, a researcher at the International Computer Science Institute, called “an encrypted lump” that would have been “tougher to break into than Fort Knox.”
Whatever tactics were used — the F.B.I. would not comment — they worked. Mr. Ulbricht was administering Silk Road when he was grabbed, the bureau said in a criminal complaint, and working under an alias, Dread Pirate Roberts, the name of a swashbuckling character from the novel and film “The Princess Bride.”
The government later released screen photographs showing that Mr. Ulbricht was logged into a page titled “mastermind.” According to the government, operational files were found, including ledgers that tallied personal revenue of 600,000 Bitcoins, the crypto-currency used for every Silk Road transaction, a stash that, at the time, was worth $80 million.
A criminal complaint laid out the charges, which included narcotics trafficking, computer hacking and money laundering. An indictment in a parallel but separate investigation, run out of Baltimore, included this startling detail: Some of Dread Pirate Roberts’s booty was spent to commission killings — six killings in total, to be done by hit men whose targets were deemed by Dread Pirate Roberts to threaten Silk Road.
None of the orders resulted in actual deaths, the authorities said. One, in fact, was an elaborate fiction concocted by a federal agent posing as a drug dealer. In a scene that sounds as if it were lifted from “Breaking Bad,” federal agents traveled to Utah to fake a beating and execution, sending the evidently grisly photographs to D.P.R., as the government calls him in its complaint.
“What’s done is done,” D.P.R. would later write to the putative dealer.
News of Mr. Ulbricht’s arrest, and the particulars of the crimes with which he was charged, elicited the inevitable chorus of “They’ve got the wrong guy” from friends and relatives, an almost clichéd feature of double-life cases. But this chorus was different. Sure, Mr. Ulbricht took his share of drugs growing up in Austin, Tex. And a high school buddy, Thomas Haney, said he could sort of imagine Ross buying from Silk Road. But running it? Ordering killings? No way.
“It’d be like they accused my mother of trying to kill someone,” said Mr. Haney, who now lives in Boise, Idaho. “He’s one of the most guileless and nonaggressive people I’ve ever met.”
A man who shared a house with Mr. Ulbricht in San Francisco for two months remembers how he rushed to help an elderly homeless woman in a wheelchair. “We were standing outside a restaurant, and he just handed me the leash to my dogs, ran into the street and said, ‘Can I help you?’ ” said the man, who, like many people interviewed for this article, spoke on the condition of anonymity because he did not want his name in an article about this case. “And he didn’t wait for an answer.”
Far from the bloodless kingpin portrayed by the government, Ross Ulbricht, by the accounts of friends and relatives, was soulful and sensitive. In a conversation with his childhood friend Rene Pinnell, recorded in 2012 through StoryCorps, a national oral history project, and still posted on YouTube, Mr. Ulbricht said that in college he initially refused to sleep with the woman he described as his first love, for fear that he would wind up heartsick.
“We didn’t have sex for like three months,” he said. “But we’d make out, and really, like, get close but never go there. And when we finally did, it was amazing.”
It seems nearly impossible to reconcile the government’s version of Mr. Ulbricht with the warm, compassionate person that others describe. Which leaves at least three possibilities.
One, that the government has, in fact, collared the wrong man.
Two, that Mr. Ulbricht is a sociopath who concealed a dark side from everyone for years.
Three, that Mr. Ulbricht is Dread Pirate Roberts — and that the two are not really that different.
A Trusted Emporium
By relying on Bitcoin and an encrypted Internet network, Silk Road created an anonymous bazaar where drugs could be bought from the comfort of home. No more drives to seedy parts of town, no more face-to-face encounters with shady dealers. Instead, transactions would be conducted through the mail, and, in what many academics regard as the linchpin to the business-model innovation, Dread Pirate Roberts devised a system to ensure that nobody got fleeced.
The site acted as an intermediary, hosting the online market and holding money in escrow until buyers confirmed that products had arrived. D.P.R. would then release the payment to the seller, keeping 8 to 15 percent of the transaction.
“He had basically commoditized security,” says Nicolas Christin, an assistant research professor at Carnegie Mellon University who has studied Silk Road. “It was a system that allowed people to buy drugs without fear that they would be ripped off.”
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Lyn and Kirk Ulbricht, Ross’s parents, plan to live in New York to be near their son as his case unfolds. “We believe in him,” Ms. Ulbricht said. Erich Schlegel for The New York Times
Eagle Scout. Idealist. Drug Trafficker?
By DAVID SEGALJAN. 18, 2014
Launch media viewer
Ross Ulbricht is accused of being the mastermind of Silk Road, the world’s largest and most notorious black market for drugs.
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The goal of the arrest, at 3:15 p.m. on Oct. 1, 2013, was not simply to apprehend Mr. Ulbricht, but also to prevent him from performing the most mundane of tasks: closing his laptop. That computer, according to the F.B.I., was the command center of Silk Road, the world’s largest and most notorious black market for drugs. In just two and a half years, the government says, Silk Road had become a hub for more than $1.2 billion worth of transactions, many of them in cocaine, heroin and LSD.
The site was like an eBay for the illicit, celebrated by drug enthusiasts, denounced by United States senators and stalked by four federal agencies. But because it was run on Tor, an encrypted Internet network, and because it merely connected buyers and sellers — rather than warehousing any products — it seemed to operate in a vaporous cloud. It was a business without infrastructure, other than a few servers and that laptop, which on 3:14 that October afternoon sat on a library desk, open.
Launch media viewer
Fake ID cards that the government says were ordered by Ross Ulbricht. The government says they were found in a package addressed to the group house where he lived in San Francisco and were intercepted by Customs and Border Protection. The United States attorney’s office redacted some information on the IDs. United States Attorney's Office, Southern District of NY
Had Mr. Ulbricht seen the F.B.I. coming, and simply closed the laptop, password protections probably would have kicked in, turning the hard drive into what Nicholas Weaver, a researcher at the International Computer Science Institute, called “an encrypted lump” that would have been “tougher to break into than Fort Knox.”
Whatever tactics were used — the F.B.I. would not comment — they worked. Mr. Ulbricht was administering Silk Road when he was grabbed, the bureau said in a criminal complaint, and working under an alias, Dread Pirate Roberts, the name of a swashbuckling character from the novel and film “The Princess Bride.”
The government later released screen photographs showing that Mr. Ulbricht was logged into a page titled “mastermind.” According to the government, operational files were found, including ledgers that tallied personal revenue of 600,000 Bitcoins, the crypto-currency used for every Silk Road transaction, a stash that, at the time, was worth $80 million.
A criminal complaint laid out the charges, which included narcotics trafficking, computer hacking and money laundering. An indictment in a parallel but separate investigation, run out of Baltimore, included this startling detail: Some of Dread Pirate Roberts’s booty was spent to commission killings — six killings in total, to be done by hit men whose targets were deemed by Dread Pirate Roberts to threaten Silk Road.
None of the orders resulted in actual deaths, the authorities said. One, in fact, was an elaborate fiction concocted by a federal agent posing as a drug dealer. In a scene that sounds as if it were lifted from “Breaking Bad,” federal agents traveled to Utah to fake a beating and execution, sending the evidently grisly photographs to D.P.R., as the government calls him in its complaint.
“What’s done is done,” D.P.R. would later write to the putative dealer.
News of Mr. Ulbricht’s arrest, and the particulars of the crimes with which he was charged, elicited the inevitable chorus of “They’ve got the wrong guy” from friends and relatives, an almost clichéd feature of double-life cases. But this chorus was different. Sure, Mr. Ulbricht took his share of drugs growing up in Austin, Tex. And a high school buddy, Thomas Haney, said he could sort of imagine Ross buying from Silk Road. But running it? Ordering killings? No way.
“It’d be like they accused my mother of trying to kill someone,” said Mr. Haney, who now lives in Boise, Idaho. “He’s one of the most guileless and nonaggressive people I’ve ever met.”
A man who shared a house with Mr. Ulbricht in San Francisco for two months remembers how he rushed to help an elderly homeless woman in a wheelchair. “We were standing outside a restaurant, and he just handed me the leash to my dogs, ran into the street and said, ‘Can I help you?’ ” said the man, who, like many people interviewed for this article, spoke on the condition of anonymity because he did not want his name in an article about this case. “And he didn’t wait for an answer.”
Far from the bloodless kingpin portrayed by the government, Ross Ulbricht, by the accounts of friends and relatives, was soulful and sensitive. In a conversation with his childhood friend Rene Pinnell, recorded in 2012 through StoryCorps, a national oral history project, and still posted on YouTube, Mr. Ulbricht said that in college he initially refused to sleep with the woman he described as his first love, for fear that he would wind up heartsick.
“We didn’t have sex for like three months,” he said. “But we’d make out, and really, like, get close but never go there. And when we finally did, it was amazing.”
It seems nearly impossible to reconcile the government’s version of Mr. Ulbricht with the warm, compassionate person that others describe. Which leaves at least three possibilities.
One, that the government has, in fact, collared the wrong man.
Two, that Mr. Ulbricht is a sociopath who concealed a dark side from everyone for years.
Three, that Mr. Ulbricht is Dread Pirate Roberts — and that the two are not really that different.
A Trusted Emporium
By relying on Bitcoin and an encrypted Internet network, Silk Road created an anonymous bazaar where drugs could be bought from the comfort of home. No more drives to seedy parts of town, no more face-to-face encounters with shady dealers. Instead, transactions would be conducted through the mail, and, in what many academics regard as the linchpin to the business-model innovation, Dread Pirate Roberts devised a system to ensure that nobody got fleeced.
The site acted as an intermediary, hosting the online market and holding money in escrow until buyers confirmed that products had arrived. D.P.R. would then release the payment to the seller, keeping 8 to 15 percent of the transaction.
“He had basically commoditized security,” says Nicolas Christin, an assistant research professor at Carnegie Mellon University who has studied Silk Road. “It was a system that allowed people to buy drugs without fear that they would be ripped off.”
Launch media viewer
Lyn and Kirk Ulbricht, Ross’s parents, plan to live in New York to be near their son as his case unfolds. “We believe in him,” Ms. Ulbricht said. Erich Schlegel for The New York Times