SilkRoad domain Seized?

[Chronikka]

I think the only way the Govt is going to get its hands on his coins is to let him use some of those coins for his defense.. if not, those 5 percent of all coins will be forever lost.

This is an interesting riddle. He might have saved the coins in brainwallets, in (comparably) tiny amounts. Even if they come from traceable SR sources, it is rather impossible to show that DPR has the key to them. It is possible to construct a recursive brainwallet with any number of addresses, which unfolds after knowing a single passphrase. Or use several different passphrases.

Since the total amount of commissions is not known, it is always possible to save some coins for retirement.

No lawyer will accept that money. LE can go after a law firm for accepting known drug money. He needs to have somebody outside of LE and his legal team with access to his wallets. Otherwise he probably can't get to it until bail is posted. But his hearing is this week. If he is able to post bail then watch the transactions and look for major dumps.

As you know, brainwallets work such that an easily memorizable passphrase is processed with algorithms, and/or combined with other phrases, to yield the actual password or privkey. If DPR has anyone outside who is allowed to have any contact with him, and who knows the way how the "A-part" (memorized part) of the passphrase needs to be treated to yield the privkey, DPR can just give him whatever amount he wants. The point is to have multiple addresses with different amounts ranging from sub-BTC1 to hundreds.

Even if there is no accomplice beforehand, if some of the stash is encrypted with the standard (or any describable) algorithm, it is pretty easy to tell to anyone both the passphrase and the algorithm.

We can be certain that DPR coins are not in one wallet

Not necessarily. DPR made personal mistakes that led to his capture. I would agree that it is unlikely he has 600k BTC on a flash drive somewhere but I would bet there is nothing elaborate to protect his personal horde of coins. Probably just a handful of encrypted wallet.dat files in separate encrypted file containers

[rpietila]

Yes. We far too often think that everybody should at all times have behaved in actual circumstances, the way we think is most advantageous:
- given all resources
- and all time
- and assuming it's the highest priority, and
- from the hindsight.

Silly, kick me if I fall on that again..

[TheEmperor]

Yes. We far too often think that everybody should at all times have behaved in actual circumstances, the way we think is most advantageous:
- given all resources
- and all time
- and assuming it's the highest priority, and
- from the hindsight.

Silly, kick me if I fall on that again..

William of Ockham has failed us again 

[TippingPoint]

I imagine that after the cops knocked on the door of his flop house to ask questions about the fake IDs, he had time to properly protect the private keys.

That is, after he was through the denial stage.

[VolanicEruptor]

I imagine that after the cops knocked on the door of his flop house to ask questions about the fake IDs, he had time to properly protect the private keys.

That is, after he was through the denial stage.

I don't think he ever thought they linked him at that point to running SR.  He probably just thought they were clueless about that, and were focused solely on the fake IDs.  This is shown in his ballzy response to their questioning, "you know, hypothetically, anybody could login to use TOR to anonymously order fake IDs"...

[TippingPoint]

That would be the denial stage.

[repentance]

I don't think he ever thought they linked him at that point to running SR.  He probably just thought they were clueless about that, and were focused solely on the fake IDs.  This is shown in his ballzy response to their questioning, "you know, hypothetically, anybody could login to use TOR to anonymously order fake IDs"...

Yeah, I think he just started to believe the whole mythology he'd created around Silk Road and himself - and really, truly believed that he was smarter than federal agents and that anything they ever discovered was nothing he couldn't talk his way out of.

There are just so many things he never seems to have considered - especially that the online world isn't some magical kingdom which exists separately from the real world.

[BitChick]

Am I the only one that was totally shocked that this guy was living in the US this entire time?  Really?  It seems rather obvious that running a site like the Silk Road would be better in a country where cops were paid off or they would just turn their heads the other way.   Of course I am glad that they caught him. The world is better off with drugs being more difficult or impossible to get. 

 

[TippingPoint]

Agents from Homeland Security Investigations arrived on July 26 at the 15th Street address. There, according to the complaint, they encountered Ross Ulbricht, whose photo matched those on all nine fake IDs.

He had over two months to think about it before they arrested him.

More than enough time to get past the denial, and properly protect the private keys.

[QuestionAuthority]

It's a good thing that SR is gone. I've seen a noticeable decrease in drug addicted prostitutes, pimps, pushers and general street crime since that site went up. Now that it's gone things will go back to normal. lol

[Swordsoffreedom]

Well if the cops asked about fake ID's and they were the operator of Silk Road I think two and two come up a lot faster

[VolanicEruptor]

Well if the cops asked about fake ID's and they were the operator of Silk Road I think two and two come up a lot faster

They red flagged him long before the fake ID's..

[Swordsoffreedom]

Well if the cops asked about fake ID's and they were the operator of Silk Road I think two and two come up a lot faster

They red flagged him long before the fake ID's..

I want them to prove they have control over the bitcoins now too 
But really long before the fake ID's well then can honestly say the operator should have built his backups at that time if the media articles are correct and they really did seize his assets.

[niko]

People keep discussing security of DPR's wallets as something he should try to ensure. The reality is opposite: he desperately needs to provably spend these coins before being locked up with a bunch of curious inmates who might decide to pick his brain in search of a brain wallet. The easiest and most productive way for him would be to forfeit the keys to the government, as this might not only keep him safer in the prison, but it might reduce his sentence. Another, more spectacular way would be to arrange for the coins to be sent to a black hole, such as 1111111111111111111114oLvT2.
 

[Swordsoffreedom]

People keep discussing security of DPR's wallets as something he should try to ensure. The reality is opposite: he desperately needs to provably spend these coins before being locked up with a bunch of curious inmates who might decide to pick his brain in search of a brain wallet. The easiest and most productive way for him would be to forfeit the keys to the government, as this might not only keep him safer in the prison, but it might reduce his sentence. Another, more spectacular way would be to arrange for the coins to be sent to a black hole, such as 1111111111111111111114oLvT2.
 

Not neccessarily, once his bargaining chip is lost there is no incentive for the government to help in his sentencing. I guess it comes back to the issue of trust, would you trust the FBI to keep up their part of the bargain in exchange, also depending on the length of the sentence if and when he comes out of prison he will have difficulty finding a job. The bitcoin income he still has non-declared could be used to finance his lifestyle for a while after leaving prison and help in his reintegration into society.

[Chronikka]

DPR is supposed to appear in court for his bail hearing tomorrow. The prosecution is going to label him a flight risk but I think his defense has a shot at getting him bail. It will probably be a steep bail (1 mil+ maybe?) but if he is able to post it all manner of things involving his bitcoin stash could happen starting tomorrow.

[darkmule]

Not neccessarily, once his bargaining chip is lost there is no incentive for the government to help in his sentencing.

This.  He strikes me as the kind of "genius" who thinks he can defend himself, being so much smarter than everyone else and all, but I'd hope (for his own sake) that he isn't stupid enough to give them jack without something, in writing, for himself.  Cops can't give you shit, whatever they say verbally.  It needs to be the prosecutor, it needs to be in writing, and it needs a real criminal lawyer to look at it to make sure it isn't packed with "gotchas."  (Better call Saul!)

[murraypaul]

DPR is supposed to appear in court for his bail hearing tomorrow. The prosecution is going to label him a flight risk but I think his defense has a shot at getting him bail. It will probably be a steep bail (1 mil+ maybe?) but if he is able to post it all manner of things involving his bitcoin stash could happen starting tomorrow.

Large scale drug dealer, suspected of involvement in two murders for hire, and demonstrated ability to arrange for false IDs.
Bail seems...unlikely.

[Professor James Moriarty]

 If this is FBI we are talking about nothing is weird.

 I mean if they want to get him out , contact dealers , find big names , snicth them back to FBI and help them become the next frank lucas than they may bail him and let him go do this.

 Whatever happens , I am not going to use silkroad (neither have I ever used it) for any illegal stuff , it is more dangerous than using a non-tor deal , hell I would rather do it on facebook than silkroad from now on.

[Chronikka]

DPR is supposed to appear in court for his bail hearing tomorrow. The prosecution is going to label him a flight risk but I think his defense has a shot at getting him bail. It will probably be a steep bail (1 mil+ maybe?) but if he is able to post it all manner of things involving his bitcoin stash could happen starting tomorrow.

Large scale drug dealer, suspected of involvement in two murders for hire, and demonstrated ability to arrange for false IDs.
Bail seems...unlikely.

Unlikely yes. But the more I think about this the more I realize DPR has one thing going for him. He does not in any way look like a criminal mastermind. He is a young, good looking, educated, seemingly mild mannered man. Not your typical violent drug trafficker. I think a judge and jury are going to have a hard time seeing this guy running a major drug/violence ring. He may get lucky tomorrow and get bail. I personally don't agree with giving bail to anybody implicated in a murder but it happens more than you think.