An in-depth study of the Silk Road

[FireNexus]

http://arxiv.org/pdf/1207.7139v1.pdf

This is a very interesting read. It claims that thousands of users and millions of dollars move through the silk road every month. Having checked out the site, I honestly wouldn't have believed it if I hadn't seen it. I know they'll eventually bring it down, but it seems like the genie is out of the bottle on online drug dealing. Could this lead to a rational approach to curtailing drug abuse, like that which has been successfully used against tobacco products, or just more resources poured into the war on drugs?

[Sea Skimmer]

My strong guess is the FBI and DEA already have an investigation going on that site, but they simply don't want to shut it down now until they think they can net a huge number of people in one big international sting. Merely forcing the site of the web, which would be easy, would accomplish nothing, arresting 500 people when they do it, well that won't mean anything in the long term either, but that's the way law enforcement would be looking at this. The site is only about eighteen months old so its not surprising its still around. A lot of attention is shifting to abuse of prescription pills as well, lots of which are sold online, and that's one place the war on drugs actually can make a difference since the supply actually can be controlled. So odds favor an investigation hoping to link up the dealers to doctors and pharmacies prior to making a move. That just takes time.

As for genie out of the bottle, its been out of the bottle for a decade if not longer that I've heard of people buying online, but that doesn't mean its unstoppable either. Law enforcement is still adapting to the internet, so is government in general, just look at how few places have a sales tax for online sales, and how even fewer, speaking only for the US, actually enforce this at the point of sale. Pennsylvania requires online sales tax to be paid by the buyer sending a check to the state government... yeah that totally is what happens.

[Thanas]

Call me back when this website can singlehandedly change the fortunes of the greatest empires on earth. Then it might be deserving of the name.

Otherwise, it is like me naming a scooter the Porsche 911.

[Skgoa]

Take the website off the internet? Improbable, since it's hiding behind TOR. (At least not without:) Following the money trail to (most of) everyone who makes money on that site, including the owner? Hard but achievable. BitCoin is not a secure (as in anonymous) form of payment. Every transaction is broadcasted and every 'Coin is unique. But TBH it would be easier to find and follow the physical drugs, since these guys are mailing them. If push comes to shove, the USPS would only have to X-ray every vacuum sealed envelope.

[General Zod]

So it's not exactly as secure as people think.

http://arstechnica.com/tech-policy/2012 ... drug-deal/

Two Australian law enforcement agencies are crowing about their arrest of a man who attempted to import illicit drugs into Australia using the online drug marketplace Silk Road. In a press release brought to our attention by CSO, the Australian Federal Police (AFP) and the Australian Customs and Border Protection Service warn Australians that users of Silk Road and services like it "will not always remain anonymous and when caught, they will be prosecuted."

Silk Road uses two cryptographic technologies to shield itself from law enforcement scrutiny. The site is only available on Tor, the cryptographic network that obfuscates the source and destination of Internet traffic. And payments are only accepted using Bitcoin, a cryptocurrency whose peer-to-peer design makes it difficult for governments to regulate or monitor.

“Criminals are attempting to exploit the international mail system through online networks, but the recent arrest demonstrates that we are one step ahead of them," said AFP official Peter Sykora. “The AFP will continue to identify, investigate and prosecute individuals or groups importing narcotics into Australia, including via illicit e-commerce platforms such as Silk Road."

The press release doesn't explain how Australian officials caught the suspect, who "was charged with 10 offenses relating to the importation, trafficking and possession of narcotics and prohibited weapons." While the government tries to give the impression that it is monitoring transactions on Silk Road itself, it's possible it caught the suspect through more traditional means.

The incident highlights Bitcoin's role as the currency of choice for activities at the fringes of society. Last month we noted that in addition to its use in drug markets, Bitcoin has also proven a popular currency for pornography and gambling.

[Simon_Jester]

Call me back when this website can singlehandedly change the fortunes of the greatest empires on earth. Then it might be deserving of the name.

Otherwise, it is like me naming a scooter the Porsche 911.

Hey, it's not like this website can Base Delta Zero planets.

[Thanas]

Call me back when this website can singlehandedly change the fortunes of the greatest empires on earth. Then it might be deserving of the name.

Otherwise, it is like me naming a scooter the Porsche 911.

Hey, it's not like this website can Base Delta Zero planets.

WOOOOOOOSH.

[Spoonist]

WOOOOOOOSH.

No, no, no. It's - brrrr5 brrrr5 WOOOOOOOSH zapp zapp "Dum Dum Dum, Dum-te-Dum, Dum-te-Dum"

[Skgoa]

So it's not exactly as secure as people think.

http://arstechnica.com/tech-policy/2012 ... drug-deal/

Two Australian law enforcement agencies are crowing about their arrest of a man who attempted to import illicit drugs into Australia using the online drug marketplace Silk Road. In a press release brought to our attention by CSO, the Australian Federal Police (AFP) and the Australian Customs and Border Protection Service warn Australians that users of Silk Road and services like it "will not always remain anonymous and when caught, they will be prosecuted."

Silk Road uses two cryptographic technologies to shield itself from law enforcement scrutiny. The site is only available on Tor, the cryptographic network that obfuscates the source and destination of Internet traffic. And payments are only accepted using Bitcoin, a cryptocurrency whose peer-to-peer design makes it difficult for governments to regulate or monitor.

“Criminals are attempting to exploit the international mail system through online networks, but the recent arrest demonstrates that we are one step ahead of them," said AFP official Peter Sykora. “The AFP will continue to identify, investigate and prosecute individuals or groups importing narcotics into Australia, including via illicit e-commerce platforms such as Silk Road."

The press release doesn't explain how Australian officials caught the suspect, who "was charged with 10 offenses relating to the importation, trafficking and possession of narcotics and prohibited weapons." While the government tries to give the impression that it is monitoring transactions on Silk Road itself, it's possible it caught the suspect through more traditional means.

The incident highlights Bitcoin's role as the currency of choice for activities at the fringes of society. Last month we noted that in addition to its use in drug markets, Bitcoin has also proven a popular currency for pornography and gambling.

I bolded the important bit. If they had a way to know everything that is going on on that website, we would have seen a massive wave of arrests all around the world.

Which brings me to a thought that has stuck with me since I heard of that website: isn't just plain dumb to have your name and address asociated with the illegal contrabant? It seems like a giant "come and arrest me, please!"

[Grumman]

Which brings me to a thought that has stuck with me since I heard of that website: isn't just plain dumb to have your name and address asociated with the illegal contrabant? It seems like a giant "come and arrest me, please!"

Yeah, it's like the drug dealer's own "Analog hole": no matter how good your encryption, you've still got to transfer a physical object.

I can think of a way they might be able to protect the recipient (and cause havoc with the authorities at the same time), but unless the idea is completely flawed it's probably best left unspoken.

[Thanas]

WOOOOOOOSH.

No, no, no. It's - brrrr5 brrrr5 WOOOOOOOSH zapp zapp "Dum Dum Dum, Dum-te-Dum, Dum-te-Dum"

That is a funny sound for a point flying over someones head.