Silkroad Busted. Dpr Arrested. Site And Servers Taken Over.

[Jewbacca]

It is actually thought to be that the new guy is the original DPR... the one that got busted quoted in the very start of SR something about the founder DPR... I knew SR2 was in the works and there was a new forum but I haven't even been on Tor for like a month... I can't risk being around any SR related shit lol... I'm just glad I stopped using it about 8 months before it went down as I was pretty much there from the start!

You may well be right, but like you, I'm not going to be the crash test dummy and run over there to find out, LOL.

 

[headbanger]

Excellent point Jewy, the perfect sting operation.

 

[Citylife]

You may well be right, but like you, I'm not going to be the crash test dummy and run over there to find out, LOL.

Crash test dummy? Hell no... I said I can't risk being around any SR related shit and I mentioned I don't even mess with Tor anymore... Dumb thing is all the known vendors even when they went to BMR or sheep are using there same name and LE has all there prior sales! Stupid as hell IMO but guess its so people know they are real.... I'm staying far away and my only advice to any one going that route is to make sure if it is a known vendor they have their original PGP key or chances are it's not them!

 

[Jewbacca]

Crash test dummy? Hell no... I said I can't risk being around any SR related shit and I mentioned I don't even mess with Tor anymore... Dumb thing is all the known vendors even when they went to BMR or sheep are using there same name and LE has all there prior sales! Stupid as hell IMO but guess its so people know they are real.... I'm staying far away and my only advice to any one going that route is to make sure if it is a known vendor they have their original PGP key or chances are it's not them!

Good advice indeed. If it were me, I'd follow your lead and not go anywhere near that place. I just don't see how anyone could perceive the benefits as being worth the risk.

 

[Citylife]

Very interesting, long link I found on this... says it is from an interview with the new "DPR" .... even mentions something about known vendors having to verify with PGP or pay $200, which they get back like the old site...I am staying away but for all hopes I really hope this guy knows what he is doing, and very possible to get away with it since the last DPR was just plain stupid! Very interesting read though... Could be a giant scam though however... Interesting part at the end talking about one of the most known vendors that got busted and says he was working with the Feds for 2 months before the close... Makes sense cause I read somewhere awhile ago that the server was actually compromised two months before the shut down!

here it is.. http://mashable.com/2013/11/06/silk-road-dread-pirate-roberts/

 

[kroozer88]

This place was doomed. I mean really!

 

[cowboys32]

LOL it made me giggle. Why another!!

 

[Citylife]

LOL it made me giggle. Why another!!

Greed and money perhaps...? He did make 80 million in commission, which is still locked up actually and neither he or the gov't can touch it... Must suck ass, and I believe he even has a public lawyer!

 

[Jewbacca]

Greed and money perhaps...? He did make 80 million in commission, which is still locked up actually and neither he or the gov't can touch it... Must suck ass, and I believe he even has a public lawyer!

Indeed, he lawyered up with a PD, but as you note, he can't touch the money. The only thing standing between the alphabet boys and all that money is his encryption key. Presents quite a conundrum. Anyway, keep in mind as well that there is one giant motivation here for anyone with significant Bitcoin holdings to revive SR, and it's fairly simple. Bitcoins are a market-driven commodity like any other currency, and SR accounted for a giant share of the currency's liquidity. So, shut down the primary outlet and demand driver for the currency, market activity for the currency slows to a crawl, and as a result, value plummets. Pretty much the same dynamic as would be created if, for example, every mutual fund in the world decided to stop investing in Microsoft stock all at once. Volume would plummet, and with it, share value. As they said back in business school "market volume and volatility is your friend". So, point being, that 80M worth of Bitcoin won't be worth anywhere near 80M unless the market for the currency can be somehow propped back up. When you seek a motive, always follow the money.

 

[Citylife]

Indeed, he lawyered up with a PD, but as you note, he can't touch the money. The only thing standing between the alphabet boys and all that money is his encryption key. Presents quite a conundrum. Anyway, keep in mind as well that there is one giant motivation here for anyone with significant Bitcoin holdings to revive SR, and it's fairly simple. Bitcoins are a market-driven commodity like any other currency, and SR accounted for a giant share of the currency's liquidity. So, shut down the primary outlet and demand driver for the currency, market activity for the currency slows to a crawl, and as a result, value plummets. Pretty much the same dynamic as would be created if, for example, every mutual fund in the world decided to stop investing in Microsoft stock all at once. Volume would plummet, and with it, share value. As they said back in business school "market volume and volatility is your friend". So, point being, that 80M worth of Bitcoin won't be worth anywhere near 80M unless the market for the currency can be somehow propped back up. When you seek a motive, always follow the money.

Jewy have you checked the bitcoin prices recently? They are at an all time ridiculously high price of like high $300's to $400 bucks man! Damn, not sure why they went up so much considering much of what you said they should have gone down! I believe the bitcoin was at about $135 or so when the bust happened so for it to rise that much is insane. I remember in the very start when bitcoins where less than $5! Imagine if you just kept a little investment of like $5K in bit coins... Damn /default_smile.png

 

[Jewbacca]

Jewy have you checked the bitcoin prices recently? They are at an all time ridiculously high price of like high $300's to $400 bucks man! Damn, not sure why they went up so much considering much of what you said they should have gone down! I believe the bitcoin was at about $135 or so when the bust happened so for it to rise that much is insane. I remember in the very start when bitcoins where less than $5! Imagine if you just kept a little investment of like $5K in bit coins... Damn /default_smile.png

Sure, I follow the currency and commodity markets on a daily basis as part of my professional activities. And you're right, prices are at ridiculous highs, for now anyway. As is the case with any fiat currency (one that has no intrinsic value, and is not backed by a hard commodity like gold), market value is simply an internal supply / demand function, so trade volume is critical, and is driven by different things. In what I would call a more "mature", or "stable" market for a currency like this, trading volume is primarily driven by a need for the currency. In the case of Bitcoins, that need is to convert dollars into the cryptocurrency to complete transactions on platforms like SR that require its use. Obviously, SR transaction volume was completely cut off, at least for a time, and while I don't their current status, the volume must be dramatically lower than before, even if they are back up. Anyway, I digress, so to get back on point, the moral of the story is that despite there being far lower need for the currency at present, trade volume remains high, sustaining prices. So, what causes that, you might ask? The answer is one word. Speculation. I've been following the personal blog of Bitcoin's creator, and it's well known in financial circles that those with substantial stakes in the Bitcoin industry (exchange services, etc) are doing everything they can to generate buzz and keep speculation activity high in order to keep prices propped up.

Anyway, while all of that is great, and are normal activities in any fluid market, there is tremendous risk in speculating on any financial asset with no intrinsic value (see fiat currency above), and even more so on one where future demand for the currency is in serious doubt. A counterpoint example would be US Dollars. While also a fiat currency lacking intrinsic value, there is obviously significant demand for US Dollars, simply by virtue of the fact that it's the currency of a world super power and, at least at present, the world's "reserve currency". Obviously, no such inherent, ongoing demand is present with an alternative currency like Bitcoin, so its up to the creators and stakeholders of the currency to facilitate demand by working to encourage development of platforms that require its use, like SR for example.

In any event, your point is well taken, and yeah, I wouldn't mind at all, had I invested $5K in Bitcoins when they were at $5.00. Would have made for a very happy holiday season, that's for sure! That being said though, I wouldn't touch them with a 10 foot pole at current prices. There's just nothing there to support that valuation level going forward. Just pure speculation volume, which will ultimately fall off, and when it does, it's going to be a very fast, very steep fall. Always remember this quote that one of my finance professors told us back in college:

"The time to buy is when there is blood in the streets", which means that the last time you want to be buying is when everyone else is. When the bottom falls out and everyone is losing their collective arses, THAT'S when you want to start buying. I'll see ya down around the $20 mark. /default_biggrin.png

 

[Citylife]

Sure, I follow the currency and commodity markets on a daily basis as part of my professional activities. And you're right, prices are at ridiculous highs, for now anyway. As is the case with any fiat currency (one that has no intrinsic value, and is not backed by a hard commodity like gold), market value is simply an internal supply / demand function, so trade volume is critical, and is driven by different things. In what I would call a more "mature", or "stable" market for a currency like this, trading volume is primarily driven by a need for the currency. In the case of Bitcoins, that need is to convert dollars into the cryptocurrency to complete transactions on platforms like SR that require its use. Obviously, SR transaction volume was completely cut off, at least for a time, and while I don't their current status, the volume must be dramatically lower than before, even if they are back up. Anyway, I digress, so to get back on point, the moral of the story is that despite there being far lower need for the currency at present, trade volume remains high, sustaining prices. So, what causes that, you might ask? The answer is one word. Speculation. I've been following the personal blog of Bitcoin's creator, and it's well known in financial circles that those with substantial stakes in the Bitcoin industry (exchange services, etc) are doing everything they can to generate buzz and keep speculation activity high in order to keep prices propped up.

Anyway, while all of that is great, and are normal activities in any fluid market, there is tremendous risk in speculating on any financial asset with no intrinsic value (see fiat currency above), and even more so on one where future demand for the currency is in serious doubt. A counterpoint example would be US Dollars. While also a fiat currency lacking intrinsic value, there is obviously significant demand for US Dollars, simply by virtue of the fact that it's the currency of a world super power and, at least at present, the world's "reserve currency". Obviously, no such inherent, ongoing demand is present with an alternative currency like Bitcoin, so its up to the creators and stakeholders of the currency to facilitate demand by working to encourage development of platforms that require its use, like SR for example.

In any event, your point is well taken, and yeah, I wouldn't mind at all, had I invested $5K in Bitcoins when they were at $5.00. Would have made for a very happy holiday season, that's for sure! That being said though, I wouldn't touch them with a 10 foot pole at current prices. There's just nothing there to support that valuation level going forward. Just pure speculation volume, which will ultimately fall off, and when it does, it's going to be a very fast, very steep fall. Always remember this quote that one of my finance professors told us back in college:

"The time to buy is when there is blood in the streets", which means that the last time you want to be buying is when everyone else is. When the bottom falls out and everyone is losing their collective arses, THAT'S when you want to start buying. I'll see ya down around the $20 mark. /default_biggrin.png

Damn good write up man... seriously was a very educational read and posts like that show how much effort you put into this site by just the sheer volume of what you write and also how well written and easy to comprehend you make things! Thanks a lot man, enjoyed the quick lesson for the day on financial markets, absolutely no BS here!

 

[Jewbacca]

Damn good write up man... seriously was a very educational read and posts like that show how much effort you put into this site by just the sheer volume of what you write and also how well written and easy to comprehend you make things! Thanks a lot man, enjoyed the quick lesson for the day on financial markets, absolutely no BS here!

Thanks CS, much respect man!

 

[NeoMD]

I've placed an order with SR since their return and I'm not sitting in cuffs...

Even if the authorities are monitoring it, they're after the vendors. They have no interest in you or I.

Personally, I prefer Sheep since reviews are still around.

 

[ZeroZia]

I would stay the fuck away from SR.  You might not be in cuffs now, but these things take time NeoMD there are other systems like SR use the alternates.

 

[Jewbacca]

Annnnnd, case in point, lets use the very title of this thread:

Taken over by who, or is it whom? Meh, which ever, it's the very charming alphabet boys.  Good luck

Well, I couldn't possibly come up with a better segue than that. As it turns out, we've been discussing this ongoing legal / interdiction issue for some time now behind the scenes, and Heisenberg and I have arrived at the conclusion that the further we distance ourselves from these types of sites, the better, even as a matter of news / topical discussion. While I know that this model has its fans, and while I respect everyone's right to manage their own affairs as they see fit, we just can't seem to justify any continued dialogue here on DBG where SR and its peers are concerned. With the SR vendors review thread having been removed permanently, there really is nothing to be gained here, and all we're serving to do here is to leave a trail of breadcrumbs for the alphabet boys. So, with that said, it's a wrap, and this topic will be locked effective immediately. I will, however, leave it up for a while for reference purposes before retiring it for good. Thanks for your continued support and understanding as we work to protect DBG and ensure its successful future.

Jewy