Illegal trades with bitcoins
With the increasing use of bitcoins and cryptocurrency some people have found ways to use this to benefit their business of illegal trafficking. Because of the inability to trace a bitcoin it is hard for authorities to pinpoint the information needed to address the issue. One well known underground drug trafficking ring that works from bitcoins is a company named Silk Road.
What is Silk Road
Silk Road was founded in 2011 around the month of February. The name of the organization derives from a group of trade routes for historical times that was created during the Han Dynasty. These routes involved many countries including Europe, India, China and other Afro-Erasian lands. Named from The Princess Bridethe person responsible for the operations of Silk Road was a man named “Dead Pirate Roberts” (Silk road). He was allegedly regarded as Ross William Ulbricht and was arrested in San Francisco on October 2, 2013. Come March of 2013 Silk Road had constructed a business with 10,000 products for sale with over 70% being drugs. Some of the things sold on the site are:
- Heroin
- LSD
- Cannabis
- Child pornography
- Assiassinations
- Armory and weapons of destruction
- Stolen credit cards
Silk Road had a sister company that was named “The Armory” but due to lack of demand it shut down in 2012. The shut down and termination of Silk Road affected the value of the bitcoin. It dropped tremendously after the events of Silk Roads endeavors. Silk Road was estimate to have brought in $1.2 billion in revenue with commissions equaling $79.8 million. Although many believe and state that the use of bitcoins is primarily for safety and protection it is a great haven for those involved in money laundering and the sale of illegal substances. This resulted in the use of bitcoin becoming illegal in Thailand (More info). The authorities are fighting for a way to regulate the usage of bitcoins. They believe it is giving criminals an avenue to create and pursue more illegal activities. Without the ability to trace they almost never can find the evidence needed to convict anyone of their crimes. There is a fear that the value of the bitcoin will keep decreasing after the shutdown of Silk Road. They believe this due to thinking if a majority of bitcoin holders belonged on the wrong side of the law then they will disappear after having no more black market to spend them on.
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