Silk Road Founder Arrested While Bitcoins Plummet

Silk Road Founder Arrested While Bitcoins Plummet

Bitcoins come in the news, between the closed 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 Road’s founder known online only by his handle ‘Dread Pirate Roberts’, but apparently known to the feds just a little more intimately as Ross William Ulbricht- plus the seizure and turn off of the Silk Road site itself. Silk Road ended up being an exclusively Bitcoin gambling site, well-known to numerous as an available marketplace for illegal drugs and more; the site’s just below a million registered users were frequently cash launderers, according to the arrest warrant.

‘Based on my training and experience, Silk Road has emerged as the most advanced and extensive criminal marketplace on the net today,’ FBI Special Agent Christopher Tarbell noted within the problem. Tarbell added that in the past 2 1/2 years, Silk path generated some $1.3 billion worth of comparable Bitcoin trades and netted $85 million in commissions for itself, often for things as macabre as hiring hitmen, searching for computer hackers or purchasing illegal weapons.

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, once the rates for the currency that is digital from $139 per Bitcoin to $109.71 per Bitcoin in just under three hours. Continue reading