What Was the Silk Road Online? History and Closure by the FBI ?
What Was Silk Road?
Silk Road was a digital black market platform that was popular for hosting money laundering activities and illegal drug transactions using Bitcoin. Silk Road, regarded as the first darknet market, was launched in 2011 and eventually shut down by the FBI in 2013. It was founded by Ross William Ulbricht, who is now serving a life sentence in prison for his role in Silk Road.
Privacy and Feedback
Some Silk Road buyers and sellers brazenly conducted illegal drug transactions without fear because their IP addresses could not be traced back to them. Another reason Silk Road thrived was the buyer feedback system implemented on the platform. Buyers could provide feedback on sellers after receiving their goods. The feedback received was then used by the site to weed out fraudulent sellers, while reputable sellers had their products highly sought after. This promoted buyer confidence in the online platform.
The Fall of Silk Road
The Silk Road came to its demise in 2013 after the FBI learned about its existence. Although the federal agents admitted that the use of Tor and Bitcoin to obscure addresses were significant obstacles that they encountered, they were still able to crack down on the underground drug market.
The FBI shut down the site permanently, seized more than 144,000 bitcoins (then valued at $34 million), and arrested several users of the site, including the founder, Ross Ulbricht, who made about $80 million in commissions from transactions carried out within the site.
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