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 serious week for Bitcoins within the news; a whammy that is triple actually.

First, there was the arrest by the FBI of Silk path’s founder known online only by their handle ‘Dread Pirate Roberts’, but evidently known to the feds just a little more intimately as Ross William Ulbricht- therefore the seizure and turn off of the Silk Road site itself. Silk Road ended up being an exclusively Bitcoin site that is gambling well-known to many being an open market for illegal drugs and much more; the web 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 sophisticated and extensive unlawful marketplace on the Internet today,’ FBI Special Agent Christopher Tarbell noted in the complaint. Tarbell added that in the past 2 1/2 years, Silk Road generated some $1.3 billion worth of comparable Bitcoin trades and netted $85 million in commissions for itself, often for things as macabre as employing hitmen, searching for computer hackers or buying weapons that are illegal.

Major Rate Volatility Ensues

Meanwhile just 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, as soon as the rates for the digital currency dropped from $139 per Bitcoin to $109.71 per Bitcoin in only under three hours. Continue reading “Silk Road Founder Arrested While Bitcoins Plummet”