Senator Charles Schumer Pushes to Shut Down Online Drug Marketplace

[bitcoinBull]

http://www.nbcnewyork.com/news/local/Schumer-Calls-on-Feds-to-Shut-Down-Online-Drug-Marketplace-123187958.html


This merits a thread of its own.

Just as we've been expecting, but I'm a bit surprised how quickly it happened.

Wow.. bitcoin is moving at the speed of.. bits!

[Astro]

We all knew it was going to happen eventually.  Now let's see how the market reacts.

Edit: buying opportunity incoming

[grue]

wow, knew this would happen. This is exactly what we don't want for bitcoin.

"It's an online form of money laundering used to disguise the source of money, and to disguise who's both selling and buying the drug," said Schumer.

[Ian Maxwell]

This is huge. I can't decide whether to buy or sell.

I may write to Mr. Schumer, as well as my own representative and senators and in New Hampshire. The first thing they're going to hear about Bitcoin is that it's "an online form of money laundering." I'd like to give them at least the opportunity to find better information.

To be clear, I am offering no comment whatever on the legitimacy of drug laws. That is not the issue here. If the site were selling slaves, I would still not want Bitcoin banned as a solution to the problem.

[xf2_org]

wow, knew this would happen. This is exactly what we don't want for bitcoin.

Indeed

The best way to push back is to engage in legal commerce using bitcoins, and demonstrate that bitcoin is a viable world currency.

Start a bitcoin business, encourage businesses to accept bitcoins.

[BookofNick]

You think this will affect the market negatively? I'm not sure - could be some truth in the saying "there's no such thing as bad press."

BUT I agree with other posters here - the best way to positively promote bitcoin is to use it for legitimate trade. Sure, the war on drugs is a complete disaster and 90% of drug violence could end tomorrow if all drugs were legal, but IMHO it's best to stay away from hard drugs regardless of legality, and therefore I'd like to see bitcoin being used for less illicit purposes.

[Bit_Happy]

wow, knew this would happen. This is exactly what we don't want for bitcoin.

Indeed

The best way to push back is to engage in legal commerce using bitcoins, and demonstrate that bitcoin is a viable world currency.

Start a bitcoin business, encourage businesses to accept bitcoins.

+1 We need legit business.
BY THE WAY: Not my type of site, but that article is an ad which will increase the Silk Road traffic. 

[Fhtagn]

This merits a thread of its own.

Agreed, I almost started one and noticed they were talking about it on the main press thread.

I've written both Senators currently involved and am about to write my own Senators and Representative.

A thunderstorm knocked out my power and took my clipboard with it. I get to write my letter all over again. The US Senate contact pages don't provide you with a backup, after submission.  

[Ian Maxwell]

+1 We need legit business.

Agreed. I'm in the process of building a few tools right now which will hopefully make that easier. The "Marketplace" forum is pretty much the worst thing that could possibly work. (No offense at all meant---this is a great discussion forum, it's just not a great bazaar.)

BY THE WAY: Not my type of site, but that article is an ad which will increase the Silk Road traffic. 

Even more agreed. This story will probably be on the evening news before the end of the week, and the take-home for millions of viewers will be, "So, if I get these bitcoin things, I can buy weed." I'm expecting a huge upswing.

[Fhtagn]

I'll post any responses I get, though I don't expect any.

[airdata]

It's an online form of money laundering used to disguise the source of money, and to disguise who's both selling and buying the drug," said Schumer.

I suppose technically it could be considered money laundering because you can't trace the source of the money.

Hopefully this isn't going to lead to them pushing against bitcoins all together.  And it is kind of stupid that they pretend to care so much.  People who want drugs are going to get drugs.  And if they can get them online anonymously without having to deal with shady charactors on the street and what have you, that sounds like a benefit to me.

[acamus]

It's a challenge to the Tor network. Let's see how it holds up to the Feds. In the short run it should increase traffic to the site and in otc  

[lemonginger]

Someone should invent a decentralized currency we can use so that it doesn't matter what Senators think... oh wait, nice.

[bitcoinBull]

After a few minutes of reflection, I would expect Schumer to get some backlash from his colleagues for embarrassing them unnecessarily.  He will learn that its usually a bad idea to raise a stink over something about which little can be done.  He's just highlighting the fact that control is slipping from the grip of the State, and the State will not be happy about that.  Some stones are best left unturned.

Medical Marijuana is already legal in how many states?  And all the Feds can muster up is a few token busts here and there.  If they can't even control meatspace, there's no chance they can control cyberspace.

This "investigation" will continue and then it will be forgetten, and swept under the rug.  Yet another sign of the decline of state power, from which they have every reason to divert the public's attention.  They just shot themselves in the foot..

At best they might catch a few SR vendors dropping off the mail, or SR will be rebranded or replaced.

[hazek]

btw I never thought of this but is no one worried about the following?:

Attacking all users
The IP addresses of most users are totally public. You can use Tor to hide this, but the network won't work if everyone does this. BitCoin requires that some country is still free.

This is from the Weaknesses wiki page.

[abyssobenthonic]

The most dangerous place in Washington is between Chucky Schumer and a TV camera.

[mjsbuddha]

Good. This should be shut down. And if bitcoins value drops one penny we should all sue the owner of the silk road. Bitcoin is to young and to small to be associated with this sort of thing. I hope he is imprisoned and bankrupt simultaneously.

[error]

Good. This should be shut down. And if bitcoins value drops one penny we should all sue the owner of the silk road. Bitcoin is to young and to small to be associated with this sort of thing. I hope he is imprisoned and bankrupt simultaneously.

What have you been smoking?

[benjamindees]

Let them eat cake.

[mrNightowl]

Let them eat cake.

Agreed.  I feel its a much safer version of drug dealing.  Besides, people should have the freedom to put what they want in their bodies in the first place.  If they want to OD on heroin... so be it.

I mean really, what can they do about it?  Say they take down Silk Road somehow, how long before a new one pops up?  I bet there is already a few new ones online because of the heavy press.