Bitcoin Forum

http://internet.gawker.com/silk-road-trial-defense-says-mt-gox-ceo-is-the-real-d-1679786377

I am not sure if this article is legit or not, however apparently the Ulbright defense claimed in court today that Mark Karpeles was the "real" DPR that was behind Silk Road.

I somewhat doubt this is true, but I wouldn't mind seeing Karpeles spend time behind bars, be it for loosing/stealing 600k+ BTC or for running Silk Road

read again : https://twitter.com/a_greenberg/status/555862723809259520

Yea it is apparently true. DHS even went as far as to draft a warrant for his gmail accounts because they thought he was DPR.

Cross-post:

they thought....but they made a mistake and they got the real drug dealer :)

I don't think Ross is even accused of actually selling drugs. The only "deal" that I am aware of is the one that he facilitated to the guy in MD that ended up getting caught. He is however being charged as a drug kingpin

Is this true?
Is there any more evidence confirm this?

I heard the same thing the other day. From the same source(s), theymos is even mentioned.

FYI, in some parts of the world it's Friday.

of course he is not going to admit it. The person who the US government thinks is the "real" DPR is being brought up on charges that could result in an live sentence

and few fake passports

http://www.dailymail.co.uk/news/article-2908628/Jury-selection-underway-NYC-Silk-Road-trial.html

" customs and immigrations officials who had intercepted a package of counterfeit IDs from Canada, all with different names but with photos of Ulbricht's face"

He's not accused of selling drugs but it did look like he set up a trade at least partially, though there's also the fact that he was facilitating the sale of drugs via the site any way  :D. As for Mark being DPR maybe he was involved somehow but I think Ross is just desperately doing what he can to wiggle out of this.

http://www.wsj.com/articles/ross-ulbrichts-lawyers-attempt-to-poke-holes-in-governments-case-1421366899

 ::). I really don't see how any one would buy this. He was caught red handed. The only thing that interests me about this case is how long he's going down for. It looks like it'll be life to me but this is the first case of it's kind  so it's intriguing.

yes he is:

https://twitter.com/JimBitcoin/status/556017097223180288

Its all speculation right now and some people saying they have proof, Nothing proved yet.

But really, it wouldn't surprise me that Karpeles bought Silk Road early on from Ulbricht. When the feds seized dollars from Gox (~July 2013), he knew he was in trouble, being watched, so he went back to Ulbricht, and said "you take S/R. Here are some coins, here's the site." and he transferred Silk Road and a shitload of Gox/SR coins to Ulbricht's custody.

And then when Ulbricht got busted (Oct 2013), the ton of bitcoins were confiscated by the US Marshals. If those were Gox's "cold" storage, mixed with some Silk Road stuff, that would explain where the lost Gox coins went.

At that point, Karpels is scrambling with his Gox business, trying to hold things together, with zero reserve. He writes a bot (willy), to buy bitcoins regularly, in an effort to try to even things up (since he now has people's fiat deposits, but not enough bitcoins). Gox makes money on every transaction, so pumping volume is a good thing. And it gives him a chance to get his bitcoin balance closer to what it needs to be at considering everyone's deposits.

But this plan fails, because the price is rising (and willy isn't helping!). So, things get out of hand - he's actually getting into a bigger hole, because he's depleting his cash by over-paying. He hasn't thought this out.

So at this point, his cash reserves are totally under-funded, and his bitcoin reserves are under-funded. So he starts delaying withdraws.

And then he finally gives up. Blames it all on transaction malleability. There's nothing left. No fiat. No Bitcoins. (it's weird that few people have really questioned where all the fiat went from Gox.)

Karpels knows ultimately he's going to be murdered or go to jail for a long time (or both), so he takes his personal stash (200K BTC) and "finds them" for Gox. (He has subsequently claimed publicly that these were his personal coins, or so I hear.)

Now he sits, waiting for the shoe to drop.

He is fortunate that he was able to hang the DPR stuff on Ulbricht, because it's likely he'll escape that charge, and Ulbricht may actually be able to cast some doubt as to who is DPR, given the ever-changing role of DPR - multiple people, handed off several times, etc. But his day is coming.

wow.. it is amazing the continuous stream of DRAMA the bitcoin world offers.. so entertaining

Mark retweeted that he was DPR. Its probably people taking revenge because of mtgox.

Karpeles after mtgox:

http://images.dailytech.com/nimage/Karpeles_Fancy_France_May_2008_Wide.png

But why would Karpeles be so dumb so as to hand Ulbricht the gox cold storage? That's the bit I don't get.

(please spare yourselves the "because he *is* dumb" stuff :P)

Yes, even if Bitcoin fails you'll still have a lot of stories to tell when you're a grandpa. ;)

Although Karpales seems to be a really shady character, I don't believe that he is DPR until further proof.

Yah, I can be like "This one time, on bitcointalk, this guy trolled hard that bitcoin was dead, but it wasn't, ahahhaaaaaaa, well that was before quantumcoin came out in 2021 of course."

Interesting development. I'm curious to see how this case will progress.

Well this would explain his unwillingness to travel to the US. However I don't get how he would have gotten Ross to log into the SR admin panel the day he was arrested.

Several people have been linked to Silk Road via the blockchain only to have the link debunked by the fact that they happened to sell their bitcoin on Gox. This would explain why so many people on silk road were selling on gox

Do you mean to tell me you can get frappuccino from Silk Road? Wow, they really do have everything on there!

HAHA. Well technically a lot of things are/were sold on silk road, so I wouldn't take it out of the question that someone wouldn't start to sell delivery service of coffiee on sr

nice thought, but I dont think so, lol..

This is more entertaining than all soap operas combined. Whats next, Satoshi being NSA? oh yeah that is already old.

Nope Satoshi was FBI and DPR on weekdays, and karpales on weekends when he partied with the DIA and NSA.

I maybe wrong but i read an article  ::)

Karpeles worked at the pentagon when he wasn't busy running mtgoy and traded magic the gathering cards in between coffee breaks.

I think that was just a desperate move by Dratel (Ulbricht's defense attorney) so that prosecution will turn their eyes on Karpeles. Every evidence has pointed to Ulbricht as per http://bitforum.info/t/ross-ulbricht-found-guilty-on-all-charges/223?u=angelo

Every transaction made by Silk Road came from Ross' laptop.