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Silk Road was an online black market and the first modern darknet market, best known as a platform for selling illegal drugs.

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Silk Road 2 Founder Sentenced 2 Five Years For Child Porn and Drugs

Silk Road 2 and Silk Road Reloaded launched shortly after Ross Ulbricht was arrested and the Silk Road, the first and largest darknet marketplace, was taken down. The drama that would unfold surrounding the case of Ulbricht would overshadow the existence of flourishing alternative markets, many of which did not have the same scruples as the Silk Road. For example, on the Silk Road, it was against the rules to traffic in child pornography. Silk Road 2 did not have such a law, and many later markets have allowed for the sale of anything – even people. Thomas White Wanted The post Silk Road 2 Founder Sentenced 2 Five Years For Child Porn and Drugs appeared first on CCN
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Silk Road 2 Founder Finally Sentenced 5 Years After His Arrest

Immediately after the Silk Road was taken down in 2013, a marketplace known as the Silk Road 2 launched. The new darknet market was run by a person who called himself the Dread Pirate Roberts 2 and he was arrested a few months later in November 2014. However, privacy advocate Thomas White, otherwise known as DPR2, was released on bail for the next five years and has only now been sentenced to 64 months in jail. Also read: Wikileaks Bitcoin Donations Soar Following Assange Arrest Silk Road 2 Founder Sentenced The founder of the notorious Silk Road 2 marketplace has been sentenced to prison this week for operating the illegal website for over a year. Thomas White was known as DPR2 when he ran the underground marketplace Silk Road 2 back in 2014. SR2 was not affiliated with the original Silk Road (SR) but popped up on the invisible web roughly 30 days after SR was seized in October 2013. Similarly to the original, SR2 sold narcotics, fake ID cards, counterfeit merchandise, credit cards, and software. Law enforcement said that SR2 made roughly $8 million every month after it launched for a year. Law enforcement wasted no time investigating the newly created SR2 and arrested both White (a.k.a. ‘St Exo’ or ‘DPR2’) and Blake Benthall (a.k.a. ‘Defcon’) a year later in November 2014. However, White has been out on bail since his arrest and has remained in the public eye over the last five years. Benthall was charged with conspiracy to traffic narcotics and was released and has yet to be sentenced by any courts. Silk Road 2 creators mocking U.S. law enforcement. According to multiple SR2 vendors and law enforcement officials, the website grew fast because of people’s admiration for the original SR and its leader the Dread Pirate Roberts. An investigator from the National Crime Agency (NCA), Paul Chowles, told the media this week that White told his band of companions that he would stop using his St Exo monicker and start calling himself DPR2. “DPR2, aka Thomas White, was the boss. He was the controlling mind in all of this, and he was the one driving it forward,” Chowles explained in a recent interview. “Dread Pirate Roberts is now immortal and if you devote yourself to that ideal, and our enemies cannot stop it, then the idea becomes something else entirely,” DPR2 stated in 2014. The post continued: They may have sunk one ship, but now they have awoken the kraken. Ulbricht Family Underscores the Contrast Between White’s Punishment and the Much Harsher Sentencing Ross Received Reports detail that after White was released on bail, he also used the name ‘The Cthulhu’ online and commented regularly on tech articles, forums, and became known as a privacy expert. He also ran a few websites that focused on data breaches and ran numerous Tor nodes as well. Motherboard attempted to talk with White this week but he declined and also deleted his Cthulhu profile. White pleaded guilty for his involvement with the SR2 website which involved charges of money laundering and MDMA distribution. According to the courts, in Germany alone White earned 1% commission off $143,000 worth of class A drug sales stemming from the region. The NCA also revealed that White owned around 50 BTC ($255,000) at the time of his arrest in 2014. The case was a combined effort between U.S. law enforcement agencies such as the FBI, the Justice Department, and Homeland Security. But the SR2 server was identified by the government-funded Carnegie Mellon University’s Scientific Engineering Institute, which unmasked many Tor services that year. After the unmasking, the FBI and other three-letter agencies gained access to a large cache of IP addresses stemming from SR2 participants and other darknet markets. From here, law enforcement discovered White’s role as DPR2 and that Blake Benthall coded the website. DPR2 did an exclusive interview with Motherboard reporter Jason Cox back when the site was raking in hundreds of thousands of dollars a day. DPR2 recounted the day he decided to launch SR2 and how he was extremely anxious when he published the site on the deep web. “I had the URL ready to launch,” DPR2 explained to Cox. “I think I must have sat there for five minutes staring at the screen. Once you hit that enter button, you’ve just launched something that you know there is going to be an absolutely fucking huge manhunt after you.” The Thomas White (DPR2) sentencing also affected the lives of Ross Ulbricht’s family members when they heard the news. With White being sentenced to five years and another SR2 admin Brian Farrell sentenced to eight, the Ulbricht family believes it is unfair that Ross is serving a double life sentence for his role in the original Silk Road. “Please sign Ross’s petition for clemency,” explained the Freeross.org on Twitter this week. “This is his sixth year in prison, he deserves a second chance.” The tweet also displayed a picture of Ross sentenced to double life in prison and a picture of Thomas White sentenced to only five years. Moreover, the picture shared on Twitter shows how the SR2 marketplace run by White was filled with child pornography, which was something strictly prohibited on the original Silk Road market. White is required to register as a sex offender for 10 years in addition to his five-year prison sentence. What do you think about the sentencing of Thomas White a.k.a. DPR2? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Pixabay, Twitter, and Wiki Commons. Express yourself freely at Bitcoin.com’s user forums. We don’t censor on political grounds. Check forum.Bitcoin.com The post Silk Road 2 Founder Finally Sentenced 5 Years After His Arrest appeared first on Bitcoin News.
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Bitcoin Cash [BCH] advocate Roger Ver shows his support for Silk Road founder Ross Ulbricht again

The cryptocurrency ecosystem has seen quite a few users who were prosecuted for using the decentralized ecosystem for nefarious practices. One standout example of this was Ross Ulbricht, who was jailed in connection with the Silk Road scandal in 2013. He was convicted of money laundering and major computer hacks and was worth a whopping $28.5 million at the time of his arrest. Since then, many proponents from the field of digital assets have come out in support of Ulbricht, claiming that the regulations on which he was arrested were flawed or flimsy. Roger Ver, the Chief Executive Officer of Bitcoin.com and a major Bitcoin Cash [BCH] advocate, has been a supporter of Ross Ulbricht for a long time and recently declared his support again with a tweet. In the message, he had tagged Donald Trump, asking for Ulbricht’s release, while also sharing a message from Tim Draper, who supported the Silk Road Founder. Tim Draper said: “Free Ross! We need that guy in the economy. That’s all there is to it. He is clearly one of the great entrepreneurs in the world. He should be pardoned, he should get out of jail.” Draper isn’t the only famous personality in the crypto-verse who has supported Ulbricht in the past, as Charlie Lee, the founder of Litecoin [LTC], had also come in support of the jailed crypto-enthusiast. Lee had earlier stated: “Whatever you think of Silk Road, Ross Ulbricht, creator of Silk Road, does not deserve a life sentence without the possibility of parole.” The Free Ross movement has been ongoing for a long time now, with the hashtag #freeross becoming a symbol against oppressive prosecution. Roger Ver had spoken about Ulbricht multiple times earlier and had even written a letter to Ulbricht. The CEO had discussed the issue with Gabriel Cardona on a Bitcoin.com episode too. He said in the episode: “Basically, Ross Ulbricht is the person that made Bitcoin start to become popular to being with. He made a useful platform that people started to use. Silk Road was useful, so, people started to use it and that’s what kicked-off this whole ecosystem.”   The post Bitcoin Cash [BCH] advocate Roger Ver shows his support for Silk Road founder Ross Ulbricht again appeared first on AMBCrypto.
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Biggest weekly losers: XRP, Litecoin [LTC], Stellar Lumens [XLM] fall by 10%; market tanks after Bitfinex-Tether fiasco

The market saw prices of most major cryptocurrencies soar earlier this week. However, the weekend has led to a new turn of events as coins are now being dragged into bearish territory. Among the top-10 coins, the five cryptocurrencies that saw the biggest fall were Stellar Lumens [XLM], EOS, Cardano [ADA], XRP, and Litecoin [LTC]. The fall in prices was a result of the Bitfinex-Tether fiasco. New York State’s Attorney General’s [NYAG] office revealed that iFinex, the company behind the crypto-exchange Bifinex, may be violating New York Law. This announcement was in relation to activities that “may have defrauded” local investors who trade in cryptocurrencies. Stellar Lumens [XLM] Source: Trading View Stellar Lumens [XLM] was valued at $0.1158 on April 20 and fell by 14.68% over the week. At press time, the coin was valued at $0.0990 with a market cap of $1.88 billion. The 24-hour trading volume was noted to be $276 million, as the coin fell by 4.50% over the past day and continued to dip by 0.43% within the past hour. EOS Source: Trading View EOS, at the beginning of the week was valued at $5.47, after which it fell by 13.97% over the past seven days. At press time, the coin was valued at $4.70, with a market cap of $4.43 billion. The 24-hour trading volume of the coin was $2.62 billion as it fell by 1.91% over the past day. The coin, at press time, was falling by 0.14% and failed to recover. Cardano [ADA] Source: Trading View Cardano [ADA] fell by 13.41% over the week, which resulted in its price falling from $0.0769 to $0.0690. The market cap of the coin was reported to be $1.78 billion and the 24-hour trading volume was $108 million. Over the past 24-hours, the coin fell by 4.47% and continued to fall by 1.35% within the past hour. XRP Source: Trading View At the beginning of the week, XRP was valued at $0.3325, after which it slipped by 11.88% and, at press time, was valued at $0.2929. The market cap of the coin was noted to be $12.30 billion and the trading volume of the coin was $1.36 billion. XRP fell by 2.49% over the past day and by 0.50% over the past hour. Litecoin [LTC]  Source: Trading View Litecoin [LTC] noted a fall of 10.79% over the past week, which reduced the price of LTC from $81.33 to $72.64. The market cap of the coin was $4.46 billion with a 24-hour trading volume of $3.15 billion. The price of the coin fell by 0.77% over the past 24-hours and by 0.94% within an hour. The post Biggest weekly losers: XRP, Litecoin [LTC], Stellar Lumens [XLM] fall by 10%; market tanks after Bitfinex-Tether fiasco appeared first on AMBCrypto.
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Bitfinex: $850M Lost Tether ‘False Assertion’

Following the New York Attorney General’s accusations of a $850M cover-up by Bitfinex, the company has issued its response. Binfinex refutes the claims as ‘riddled with false assertions’ and that the funds are not lost.  The Cover-Up Claims According to the NY Attorney General’s claim, Bitfinex lost $850 million of customer money. This had been sent to, and seized by payment processing firm, Crypto Capital Corp. The allegation goes on to say that Bitfinex used cash reserves from affiliated stablecoin, Tether, to cover the shortfall. The AG, Letitia James, claims this ‘loss of funds’ and movement of reserves was not disclosed by operator of both Bitfinex and Tether, iFinex. Therefore, it had “engaged in a cover-up to hide the apparent loss of $850 million of co-mingled client and corporate funds.” At press time, the price of USD Tether 00 has fallen bellow its $1 peg. Meanwhile, its stablecoin competitors such as USD-Coin 00  and TrueUSD 00 are now trading at a slight premium. This suggests that investors are likely swapping their tethers  to avoid any further surprises. Worth noting, Bitcoinist reported yesterday that the supply of tethers has reachd an all-time high. ‘Bitfinex and Tether are Financially Strong’ Bitfinex responded today by claiming that the AG’s filings: …were written in bad faith and are riddled with false assertions, including as to a purported $850 million “loss” at Crypto Capital. It claimed that these funds were not lost, but had “been, in fact, seized and safeguarded,” and it was actively working to get those funds released. It went on to chastise the AG for not doing more to aid and support its recovery efforts. Both Bitfinex and Tether are financially strong – full stop. And both Bitfinex and Tether are committed to fighting this gross overreach by the New York Attorney General’s office against companies that are good corporate citizens and strong supporters of law enforcement. Bitfinex and Tether will vigorously challenge this, and any and all other actions, by the New York Attorney General’s office. The Double Standards Caitlin Long pointed out on Twitter, that even if the allegations were true, the NY AG was guilty of double standards. From 2009-12, Merrill Lynch, according to the SEC: commingled customer funds, used them to cover its own obligations, & had it failed its customers would have been exposed to a “massive shortfall in the reserve account.” Which is essentially what the AG is accusing iFinex of. But whilst the SEC dealt with the Merrill Lynch case without causing panic and customer withdrawals, the move by the AG has sparked just that for iFinex. 7/ So…#NewYork did good investigative work here but needs to be called to task on why the double standard, and why the "gotcha" approach? Why not do the same to #WallSt firms when they play similar shell games??? — Caitlin Long (@CaitlinLong_) April 26, 2019 She also urged exchanges to clean up their acts regarding transparency and proof of solvency, to avoid such situations. The Problem? The Attorney General’s filing, asserts that the Tether funds were extended as a line of credit, over three years, with a 6.5% interest rate. An iFinex share charge, of 60,000,000 shares, secured the loan. Entrepreneur and commentator, Alistair Milne, Tweeted the situation rather succinctly, concluding that, as long as “Bitfinex trades profitably, no problem.” TL:DR the Tether/Bitfinex news:Bitfinex have borrowed ~700mil from TetherBitfinex pay a 'fair' interest rate on this loan60million shares in Bitfinex were pledged as collateralIf CryptoCapital release the USD, no problemIf Bitfinex trades profitably, no problem — Alistair Milne (@alistairmilne) April 25, 2019 Which brings us back to transparency and disclosure. If iFinex told customers and investors about this alleged ‘seizure’ and ‘loan’, then would they now have a problem? And is the AG’s ‘gotcha’ approach really warranted in any case? Is the NY Generaly Attorney acting in ‘bad faith’? Share your thoughts below! Images via Shutterstock The post Bitfinex: $850M Lost Tether ‘False Assertion’ appeared first on Bitcoinist.com.
Bitcoinist

New York Attorney General’s Office Accuses Bitfinex Of Covering $850 Million Losses Using Tether Funds

If you are our BitcoinExchangeGuide’s regular reader. You should already know about the shady connection between Bitfinex and Tether. This Thursday, a document by the New York Attorney General’s (NYAG) office revealed that iFinex, the company behind both Tether (USDT) and Bitcoin exchange Bitfinex, is being sued. In the press release, the attorney general Letitia […]
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