RedHanded - FROM THE VAULT - Episode 291 - The Silk Road: Drugs, Data & The Dread Pirate Roberts
Episode Date: January 28, 2025With Ross Ulbricht now a free man thanks to his recent presidential pardon we thought it would a good idea to look back at who he is, what he did, and what he represented as "The Dread Pirate... Roberts". So enjoy our episode from all the way back in March 2023 for some all important context on the internets iconic drug kingpin, and decide for yourself: Should he be walking free?--For some, the end of the world's most infamous online marketplace was a major victory in the never ending war on drugs. But for others, the global, multi-agency investigation into the Silk Road set a dangerous precedent for law enforcement – who rifled through the personal data of countless innocent users in their hunt for the elusive online drug-lord/revolutionary: Dread Pirate Roberts.So prepare for a trip on the Silk Road, and find out how a tax inspector hanging out on a hallucinogenic mushroom forum caught one of the most slippery criminals we’ve ever covered.Exclusive bonus content:Wondery - Ad-free & ShortHandPatreon - Ad-free & Bonus EpisodesFollow us on social media:YouTubeTikTokInstagramXVisit our website:WebsiteSources available on redhandedpodcast.comSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
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Hey listeners, amongst Donald Trump's flurry of executive orders and presidential pardons over
the past week, you may have noticed the full pardon and release of dark web drug kingpin
web drug kingpin Ross Ulbricht aka the Dread Pirate Roberts. In May 2015 Ulbricht was sentenced to two life sentences plus 40 years for conspiracy
to commit money laundering, conspiracy to commit computer hacking, narcotics conspiracy and
continuing criminal enterprise.
As the creator and operator of the Silk Road Ulbricht facilitated a dark web marketplace that operated between
2011 and 2013, during which time it hosted the sale of hundreds of millions of dollars
worth of drugs. This made Ulbricht, as the anonymous dread pirate Robert, a multi-millionaire,
and a shining figurehead for libertarian drug users around the globe.
But that is not the full story. While for some the
Silk Road became a safe haven for drug experimentation, it also played host to a
more seedy clientele as well. Also being sold through the site were fake IDs,
stolen credit cards and allegedly even firearms. By the time Ulbricht had been
arrested he'd been accused of hiring several hitmen, getting involved in serious
gang violence and the distribution of child sex abuse images. Yet, at the Libertarian National
Convention, Donald Trump promised that he would pardon Ulbricht if he was re-elected. And as of
a week ago, Ulbricht is a free man. So to understand why Libertarians would want Ulbricht released,
you'll need to know all about the murky murky depths of the dark web, something we dove into head first in our episode from way
way back in March 2023, all about drugs, data and the Dread Pirate Roberts. So here it is from the Vault. Enjoy!
I'm Saruti. I'm Hannah.
And welcome to Red Handed.
Digital edition.
Digital.
Red Handed goes digital.
Yeah, we've been analogue this whole time.
Yeah, it's a very techie one.
Yeah.
I've actually wanted to do it for ages because I watched a documentary about it years ago
and I meant to re-watch it last night but I didn't.
I watched 90 Day Films instead because I forgot.
I watched Maths Australia.
Oh, the new one.
So I actually didn't do a re-watch but that's okay because I think I watched that documentary
about six times.
Yeah, we got it.
We got it and we're going to do it now.
So pay attention.
Digitally.
On the 1st of June, 2011, Adrian Chen, a writer for Gawker,
published an article titled, The Underground Website Where
You Can Buy Any Drug Imaginable.
The article was, of course, referring to the Silk Road.
And as the title suggested, it was indeed
a website hidden on the dark web where you
could buy pretty much any drug you wanted, anonymously.
This article caused a media firestorm.
The concept of an online drug bazaar was enough to catch the eye of almost every publication
on the planet.
And for the likes of Fox News, it was confirmation that the world had fully gone to the dogs.
As things often do when Fox News get involved, Silk Road quickly became a political issue.
However, it would take the DEA, Homeland Security and the FBI two years to shut down the anonymous
online drug market.
The high-profile court case that followed, for some was a victory, for others
it was a miscarriage of justice that set an alarming precedent for people's right to
privacy. But before we get to all that, we need to talk about what the Silk Road actually
was, how it worked and why it was so goddamn successful, apart from the fact that people
love drugs. If we've learned one thing on this show, it is that humans are flawed and they love
drugs.
The first ad for The Silk Road appeared on Darknet forums early on in 2011.
It was hardly a high-budget production.
The advert looked like it had been made on Windows Movie Maker and was basically just
some luminous green text wobbling around the screen, followed by some stock images of cannabis, cocaine and ecstasy,
before cutting to an end card which said,
Pay only using Bitcoin.
While that ad wasn't Super Bowl halftime quality,
the intent was clear.
Come to the darknet, buy drugs, and do it with the cryptocurrency Bitcoin.
And you already know what the darknet is because you wouldn't be seeing this if you weren't
on it.
And it was this combination of Bitcoin and the darknet that set Silk Road apart and made
it such a success.
Online drug marketplaces had existed for years, but they all posed a significant risk for
the user.
Some of them existed on the regular internet, also known of course as the clear net.
These narcotic emporiums were available via a simple Google search.
However, that simple search exposed your illegal activities to your internet provider, who
could easily narc on you.
So the risk of being caught was pretty high.
The same went for the payment method.
Regardless of how careful you were
on these sites, you eventually had to pay for your drugs and that meant sending proper
money somewhere. Whether it was via bank transfer or a cash-filled envelope, this could be traced
back to you. But then came Silk Road, hidden from internet providers via the darknet and
hidden from the tax inspectors via Bitcoin.
All right, we cannot escape the fact that we've said the word darknet three times already
and we haven't actually explained what it is.
We've also said clear net once and a couple of other bits of jargon for good measure.
Give me World War One any fucking day of the week.
This stuff turns my brain inside out, but I do understand it now, I think. Let's have a little quick breakdown of a few terms that are going to be coming
up quite a lot this week.
Firstly, clear net. When we say clear net, what we mean is surface web, anything available
via a Google search. So like the front page of YouTube, Facebook, BBC News, Amazon, blah,
blah, blah, they all exist on the clear net. Easy peasy.
Then there is the deep web, which
sounds spooky but we actually use it all the time. The deep web is anything on the
internet that you can't find through a web browser like Google. Anything hidden
behind a paywall for example, or even a login page. So our Patreon page, for
example patreon.com forward slash red-handed, exists on the deep web.
And so does anything you store on your Google Drive or even the little admin pages you get
when you're trying to change your YouTube username from like sexy bunny 44.
Yeah, and like if you work at a business where you use the intranet to talk to other people
within your own network, that is the deep web.
So yeah, anything that isn't available via a simple Google search yet is on the internet,
is the deep web.
Next we need to have a very quick chat about Bitcoin.
We are not experts in this, so please don't come while actuallying us, we're doing our
fucking best.
Bitcoin is a data-based currency that relies on lines of cryptography to create unique
tokens which can be exchanged
for goods and services, or for other mainstream currencies.
As we've said before, Bitcoin is not untraceable.
In fact, it's quite the opposite.
In order to make sure there are no duplicate tokens, every single Bitcoin has to be accounted
for.
However, it can be bought and sold anonymously and held in an anonymous online wallet that
isn't connected to a real-world identity.
So if this wallet is accessed carefully, it's very difficult to pin onto a real-world person
directly.
So Bitcoin is the perfect currency for buying and selling illegal goods online.
Then comes the darknet.
The darknet is a bit more spooky and a bit more complicated.
Websites on the darknet are only available through a web browser called Tor. So you can't
use fucking Mozilla Firefox or you know if you're still using Internet Explorer for some
reason. You can't use any of that. You have to download and use TOR. And TOR stands for the Onion Router and it's a way of anonymously browsing the internet.
The code that makes TOR work was actually developed by the US Navy for anonymous communication
via the internet.
However, it has now become publicly available and is run by a network of volunteers around
the world.
For the user, TOR doesn't look particularly different from Google Chrome or Firefox.
It's just a web browser.
However, if you use it correctly, Tor is completely anonymous.
And it manages that in quite a complicated way.
What it does is Tor packages up all of your data, scrambles it before it's sent to whichever website you want to browse.
And it doesn't even send you to the website you want directly.
So your information is scrambled up and then bounced all over the globe
to a bunch of different servers, making it absolutely impossible to know where
that data came from. You can view regular websites on Tor just
like any other browser, but it also allows you to access the
.Onion websites. And those websites, which end the domain name with.Onion,
are only available through Tor
and are completely anonymous to both the user and the host.
Neither the user or the host of the website
is able to see where their communication
is coming or going from.
Even if they wanted to, you can't do it, it's impossible.
That is what the darknet is.
A few miles from the glass spires of Midtown Atlanta lies the South River Forest.
In 2021 and 2022, the woods became a home to activists from all over the country who
gathered to stop the nearby construction of a massive new police training facility nicknamed
Cop City.
At approximately nine o'clock this morning as law enforcement was moving through various sectors of the property an individual without warning
shot a Georgia State Patrol trooper.
This is We Came to the Forest, a story about resistance. The abolitionist mission isn't done until every prison is empty and shut down.
Love and fellowship. The abolitionist mission isn't done until every prison is empty and shut down.
Love and fellowship.
It was probably the happiest I've ever been in my life.
And the lengths will go to protect the things we hold closest to our hearts.
Follow We Came to the Forest on the Wondery app or wherever you get your podcasts.
You can binge all episodes of We Came to the Forest early and ad-free right now by joining
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It's 1998 and petty thief Daniel Blanchard
is about to carry out the heist of a lifetime,
stealing a crown jewel, the last remaining Cece star.
He just saw it and he said, I just knew I had to have it.
His plan, a daring nighttime parachute jump.
This guy was just like a James Bond.
And Daniel knows that if he can get his hands on the star,
it will launch him into the criminal big leagues.
If you can't be famous,
some people say it's good to be infamous.
Daniel's exploits unleash a relentless game of cat and mouse as police track him across
continents.
Time and again, he vanishes from their grasp.
I think he felt invincible.
But how long can Cece Starr stay lucky for Daniel?
From Curious Cast and Blanchard House, this is a most audacious heist.
Listen on Apple Podcasts, Spotify, Amazon Music, or wherever you get your podcasts.
That's a most audacious heist.
So the Silk Road certainly wasn't the first drug marketplace to appear on the dark net.
But its scale and professionalism were leagues above anything that had ever come before.
It looked more like Amazon or eBay than some sort of sketchy drug site.
Everything that went on was overseen by an anonymous administrator, who checked on user
safety and made sure that Silk Road ran smoothly.
This administrator also made sure that every seller
on the site stuck to Silk Road's core values,
which in the words of the administrator,
were to avoid selling things
which were designed to quote, harm or defraud.
Contrary to popular belief,
the site never offered stolen goods,
stolen credit cards or child sex abuse images.
So unlike other drug websites,
buying your next
block of hash didn't mean rubbing shoulders with career criminals or outright paedophiles.
The administrator of the Silk Road also implemented a review system similar to the one on Amazon
or eBay or whatever. So that meant sellers were held accountable for their products.
Anyone found to be selling low-grade drugs or scamming users were given poor reviews and sometimes taken off the marketplace altogether.
They really did step things up. Yeah, big time man.
What this review system meant is that the users of Silk Road got their gear from reputable sources.
They knew it would be pure and they knew exactly where it came from.
In short, the users felt safer and safety itself became a central value of Silk Road.
Not only did people feel protected from prosecution by authorities,
they felt that the anonymous administrator of the site was really looking out for their best interests.
For the first few months, Silk Road maintained a small but committed group of core users,
buying regularly from the site.
However, when the Gawker article was released in June 2011, traffic on the site skyrocketed.
Suddenly thousands of sales were being made through the site every day, and hundreds of
thousands of dollars worth of bitcoin were being transferred around the globe.
Naturally, the article also got the attention of the authorities and politicians.
Just four days after the article was published, New York Senator Chuck Schumer made a highly
publicised announcement, vowing that Silk Road would be taken down.
And he was right, little did the users of Silk Road know, but by November 2011, DEA agents had started to
infiltrate the site, posing as both buyers and sellers.
As the site grew, its mysterious owner began to employ trusted members of the community.
They did all the boring admin shit that comes with running a business that no one wants
to do, like dealing with customer complaints, shipping issues, refunds, stuff like that.
And the new system was almost corporate in its efficiency and ease of use.
And while the customer base expanded, so did the community with it.
There were message boards where people chatted politics, traded coding tips and maintained
online friendships.
Then on the 5th of February 2012, the site's owner and administrator posted an update on
the Silk Road's progress.
Within its first year, the website had facilitated hundreds of thousands of individual sales
and had hosted transactions totalling to about $15 million.
And that's big news for the Silk Road and its users.
A $15 million economy that was hidden from the eyes of the state was a huge part of their
libertarian dream.
However, the administrator was there to give more than just a sales report. They announced
that they would be changing their name and this small change had enormous consequences on the Silk
Road. The admin explained that they needed to step out of the shadows and take on a moniker that
people could recognise and rally behind
as the figurehead of Silk Road. The moniker they chose was Dread Pirate Roberts, lifted
straight from the pages of The Princess Bride.
Please tell me that you have read The Princess Bride.
I have read The Princess Bride.
Okay, have you seen the film?
I don't think I've seen the film.
That's okay.
Yeah, I don't think I've seen the film.
Okay, well, do you understand the concept of Dread Pirate Roberts?
That's amazing.
Yes, yes, I do.
And so yes, lifted straight from the pages of The Princess Bride, it was of course a
fake name and title handed down from one masked hero to the next.
The Silk Road's administrator was making a bold statement that they would not be the
first or the last person to lead this anonymous online community.
And that was really starting to piss people off.
From this moment on, the Dread Pirate Roberts took on a much more public persona.
They went from settling user disputes, handing out refunds and dealing with delays in shipping,
to becoming kind of a political leader.
Dread Pirate Roberts began posting long essays and manifestos on the
Silk Road all about their libertarian ideals and their belief in the Silk Road as a force
for good.
Like all card-carrying libertarians, Dread Pirate Roberts believed that drugs were a personal
choice and that the government had no right to dictate what people ingested or injected
into their eyeballs or whatever. The Dread Pirate Roberts also waxed lyrical about how the Silk Road was actually lowering
the risk of violence for drug users. They no longer needed to meet a shady dealer in a back alley or a
car park. They could conduct their business with anonymity and entirely online. Dread Pirate Roberts
even started their own book club to discuss libertarian literature and delve deeper into economic theory.
Sounds fun.
But the important thing is, these libertarian beliefs united the users of Silk Road, from
occasional pot smokers to functional heroin users.
Everyone wanted the freedom to use drugs safely and anonymously, and of course, when you're
not going to get arrested.
And this shift from anonymous arbitrator to political leader is very important.
Remember it.
It shall return.
So as time went by and sales soared, the Dread Pirate Roberts was becoming an internet celebrity.
He even sat down for a virtual interview with Forbes called Meet the Dread Pirate Roberts,
the man behind booming black market drug website, Silk Road.
In this interview, he discussed the competitors to Silk Road that had sprung up over the last year
and went into more detail about his libertarian beliefs. And here's what he said,
We can't stay silent forever. We have an important message and the time is ripe for the world to hear
it. What we're doing isn't about scoring drugs or sticking it to the man. It's about standing up for our rights as human beings and refusing
to submit when we've done no wrong.
It is kind of about sticking it to the man. Come on.
Yeah. I mean, this is the thing. I would say increasingly I am being drawn more and more
towards a libertarian light view of the world.
I think there are libertarian themes to your personal philosophy, but I wouldn't say it's
overarching.
No. Let's go with LL. Libertarian light, diet libertarian, coke-free libertarian. I am a
coke-free libertarian. Coke's not the drug for me. But yeah, so I can empathize what
he's saying, but I do think he has the idea that it's
not about sticking it to the man.
I would disagree with it, but I understand what he's saying.
He also told Forbes that he wasn't the first Dread Pirate Roberts, rather that he was an
early user of the site who would help the original creator patch up some vulnerabilities.
He was then taken in as one of the trusted employees and then he actually purchased the site, taking on the
moniker of Dread Pirate Roberts. If you haven't read The Princess Bride,
calling himself Dread Pirate Roberts is like saying I am Spartacus.
Yeah.
Like it immediately displays that there is more than one.
Now, if an online drug lord flaunting their anti-establishment ideals in the press wasn't
enough to light a fire under the ongoing government investigations, then what the Dread Pirate
Roberts said next was sure to get them red in the face.
When asked roughly how much he was making, personally speaking, from Silk Road, Dread
Pirate Roberts was suddenly pretty cagey.
But he did eventually divulge
the following. At some point, you're going to have to put Dread Pirate Roberts on that
list you keep over at Forbes. Obviously talking about the Forbes rich list. Not only was the
Dread Pirate Roberts a drug dealer and a revolutionary, he was now flaunting that he'd become incredibly
wealthy in the process.
And that is always how they get you.
Yes. I mean, I feel like it's obvious that he's making money because the website is
fucking making bank. But don't say it. That's how they get you.
Just don't give an interview to Forbes, man. Like, this really is a big mistake.
This is a big mistake.
Although the exact personal wealth of the Dread Pirate Roberts remained a mystery, conservative
estimates suggested that by August 2012, Silk Road had facilitated around $22 million in
sales and Silk Road took a 10% commission.
Boom.
Oh, fuck.
Leave it in.
I forgot to mute my laptop, but that was perfect timing.
Not the right sound, but perfect timing.
But yeah, fucking boom. That is. Not the right sound, but perfect timing.
But yeah, fucking boom.
That is money all the way to the drug bank.
How many monies?
Well, $22 million and they're taking 10%.
The 10% of commission would probably not be on sales,
but on, well, I guess it would be on the sales
because it's what's being generated through the website.
So yeah, it would be $2.2 million
that they would have been taking every single year
if that's how much they're selling.
Thank you for the maths.
I can't do it.
So what that maths tells us is that Dread Pirate Roberts
was making an income of several million dollars
just from sales.
And when you take that into account,
his ownership of the Silk Road site
and the steady increase
in the value of Bitcoin, Dread Pirate Robert's personal wealth could easily have been in
the tens of millions.
However, you won't be surprised to hear that this increased wealth and success brought
an increase in unwanted attention because the higher you fly, the more people hate you
for it. By mid-2011, the DEA, the FBI and Homeland
Security all had task forces dedicated to hunting down the Dread Pirate Roberts and shutting down
the Silk Road. But as hard as these government agencies worked to infiltrate Silk Road as buyers
and sellers, none of them had any luck getting close to the Dread Pirate Roberts.
He stuck to his very tight circle of trusted friends and never ever gave his personal information
to anybody because he's not a fucking idiot.
That all changed when a package was intercepted from a dealer, an admin of the Silk Road,
in Australia.
The identity of this dealer has never been revealed, although they did speak anonymously
on the documentary Darkwhip.
This dealer was not arrested or charged for their crimes and was instead offered the chance
to be a cooperating witness.
Sneaky Australia.
Fucking NARC, that's what it is.
Their user account and identity was taken over by DEA agent Carl Force.
Carl Force!
DEA agent Carl Force.
Mega narc.
Who began to communicate directly with the Dread Pirate Roberts.
Carl Force insinuated that he was unable to sell shipments big enough through the Silk
Road to fulfil his needs as a dealer. Dread pirate Roberts naturally was concerned about losing
an incredibly lucrative customer. So he put Carl Force in contact with one of his most trusted
employees, a user who went by the name Chronic Pain. Chronic Pain was a long-standing admin of Silk Road and
could facilitate large international drug shipments through the website and
over time Force and chronic pain built up a relationship until eventually
chronic pain felt safe enough to give Force their home address to facilitate
one of these large drug shipments.
No.
And this was a landslide moment for the DEA.
It is funny, isn't it, how you're kind of rooting for...
I was going to say this because it's very similar in terms of the investigation, right?
When you listen to something like Hunting Warhead.
Exactly, yeah.
They're trying to infiltrate this website.
In Hunting Warhead, it's of course Child's Play, which was the largest online child abuse
website and they need to get a reputable person that they can use to infiltrate the site.
And here they're obviously doing it with drugs. And there you're like, yeah, fucking get them,
Team Artemis, yeah. And here you're like, oh.
Knock.
Drugs. But no, obviously understand like drugs ruin people's lives.
We're not saying that doesn't happen. And we're not saying we're not like here
to advocate everybody just getting on drugs. But yeah, for some reason, maybe again, it
is my LL showing. I would say I'm less libertarian than you are, but I'm rooting for them.
Yeah. Interesting, interesting feelings to dissect on Red Handed this afternoon.
So, Chronic Pain's home address was raided by the DEA. And I can't say DEA without seeing Hank from
Breaking Bad in my head. That's all I see. So an army of Hanks raided this house. And this house
belonged to a middle-aged family man in Salt Lake City called Curtis Green.
Green's arrest quickly became public knowledge and the Dread Pirate Roberts began telling
Carl Force that he was pretty sure that Green would cooperate with the DEA.
In January 2013, the Dread Pirate Roberts offered Carl Force $40,000 to kill Curtis
Green.
Force went right ahead and staged Green's murder. He sent fake pictures of Green's
bloodied body to Dread Pirate Roberts as evidence that the job was done. And that meant that
Karl Force had proved himself to the Dread Pirate Roberts and he was finally allowed
into the trusted circle of users that the mysterious admin was a bit more open with.
No!
Aladdin's cave had opened. Open sesame. That's what Karl Force is saying. Karl Force! Open sesame.
So a few months later, a second breakthrough showed up, this time from the FBI, who had been
working hard to find the Silk Road servers. And on the 23rd of July 2013, they did.
Silk Road's home was an anonymous server farm in Iceland, rented by an even more anonymous
user called Frosty.
How the FBI pulled this off is very much up for debate.
The team that found the server in Iceland have always maintained that they exploited
a vulnerability in the site's CAPTURE software. Now CAPTURE is something that we all obviously
use all the time. It's that frustrating little thing that pops up and asks you to click on
pictures of bikes and traffic lights in order to prove that you're not a robot. What I will
say about CAPTURE is I hate doing them because it is also rumored, I believe it, that it
is to teach AI.
Oh, I believe that, yes.
Yes. So it's not just to check you're not a robot.
It's also directly feeding into like AI.
Yeah, yeah, yeah.
Of how to make the robot understand.
Exactly.
I actually, because we are in 48 hours time, we will be in Dublin.
So obviously we've been looking at dresses and stuff.
And one of the captures on one of the websites I was using was, which are boots and which
are shoes?
And I thought that was pretty funny.
That is quite funny. But I thought that was pretty funny.
That is quite funny.
But stay away from me, robot.
But still, fucking AI farming your brain.
I'm watching you as I click on these things because I have to.
As I'm doing what exactly what you want me to do.
I know. I hate it. I hate it. So yeah, basically, Capture, that's what they're doing. So the
FBI claim that while logging into the Silk Road,
they were able to track the data from their capture entry
back to the server in Iceland.
Except, as we discussed earlier,
every time you use Tor, it packages up your data,
scrambles it, and sends it all around the world
before it gets to its destination.
It is impossible to track.
Even for the FBI, it is just not physically
or mathematically possible. So yeah, this capture claim has been described by cyber
security experts as quote, laughable and bullshit. Pretty damning. The only thing worse I've
described is how MILF MANA, the brand new reality TV show has been described as quote,
grotesque and unhinged.
Yeah.
And I cannot wait to watch it.
I think you mean Kuga Kabanah.
Kuga Kabanah.
Which is our accompanying podcast.
Sign up at patreon.com slash red-handed for more.
I'm Jake Warren and in our first season of Finding, I set out on a very personal quest
to find the woman who saved my mum's life. You can listen to Finding Natasha right now exclusively on Wandery Plus.
In season 2, I found myself caught up in a new journey to help someone I've never even
met but a couple of years ago I came across a social media post by a person named Loti.
It read in part.
Three years ago today that I attempted to jump off this bridge, but this wasn't my time to go.
A gentleman named Andy saved my life. I still haven't found him.
This is a story that I came across purely by chance, but it instantly moved me.
It's taking me to a place where I've had to consider some deeper issues around mental health.
This is season two of Finding and this time if all goes to plan, we'll be finding Andy.
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You don't believe in ghosts?
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I'm Nadine Bailey.
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Current dark web dwellers also think the FBI are full of shit. Every single website that
we looked at on the dark web
while we were writing this episode has a capture login before you're able to access any site.
So if capture didn't work, if the FBI had very publicly penetrated this system, why
is anyone still using it? And also why, you might ask, did we go on the dark web to look
at illegal drug markets? Well,
firstly, we wanted to see if they were still there, and they are. And secondly, we're
switching up the format a little bit, and we're going to do a little quiz about how
much things cost on the dark web. I don't know the answers, neither does Saru. We're
going to see.
Ah, this is exciting. I see the clever little tactic here to hide the answers, highlight
to see. Okay, smart.
And this quiz game, extravaganza, is called Dealer or No Dealer.
That's very good.
So we asked our trusty Serb to scour pages of one of the currently most popular darknet
market places, which is called ASAP market. Do you remember when Liam Gallagher called ASAP Rocky WhatsApp Ricky?
No, but that's great.
Anyway, so it's WhatsApp supermarket sweep is what we're playing.
And it is important to point out as an unbiased show here, other illegal marketplaces are
also available.
So take your pick.
You don't have to use WhatsApp supermarket sweep. So, Sam's put together this set of
questions, all about how the most popular listing costs on the dark web. So, first question,
how much is a kilo of tripe diesel indoor weed on the dark web, Saruti Bala?
Tripe diesel indoor weed. Okay, a kilo of it.
No, well, I've seen the answer now.
Oh, sorry, can you see when I do that?
Yeah.
Oh, sorry.
That's all right.
I only saw it for a split second,
but it looked like it might've been about
just under $5,000.
Yes, sorry.
That's all right.
Okay, I won't look at the next one.
Okay, so I'll ask you this one.
Okay.
How much, Hannah, do 2,000 Adderall pills cost on the dark web?
I know for reasons that are none of your business that a singular volume is between 20 and 50
p.
Okay.
So times up by 2,000 and then...
No, don't make me do maths.
And then, you know, reduce it by like 10% for the sake of buying in bulk.
I'm done.
2,000 Adderall pills.
2,000 Adderall pills, I'm gonna say $4,500.
A lot cheaper, $1,608 US dollars.
So there you go, bargain.
Alright, what about 20 grams of pure crack cocaine?
Get all of the nonsense out of the way, straight to the crack cocaine.
I want to go back to the tripe diesel indoor weed.
Okay, 20 grams of pure crack cocaine.
Like I have no idea how much cocaine costs.
So if you were to buy a singular gram, street value, is between 60 to 80 pounds.
60 to 80 pounds, Jesus.
Okay, so let's say it's,'s let's say let's land in the middle
Let's call it 50 and then times out by 20. So that is taking us to a thousand
But then this is pure crack cocaine. So I'm assuming it's a higher quality than what you're buying on the street
So then I'm gonna I think all, I think it is safe to say
that everything that was on Silk Road,
I don't know now, but on Silk Road,
everything was above street quality.
Okay, in that case, I'll double it.
Let's say 2,000.
Oof, 1,493 US dollars.
Do you know what?
I actually worked that out in pounds,
worked that out in pounds thanks to your handy input.
So it is about 1,500 US dollars. Nice! Okay, Hannah, how much would 11
fake 50 euro banknotes on the dark web cost you? Okay, firstly, why would you ever buy a 50 euro
banknote? Because nobody takes them and they attract more attention people have pens to test them yeah also who's using cash anyway
11 25p 25p for 11 mm okay no 140 us dollars all right and how much cult force for 25 000 real
followers on instagram you can also get those on the dark web apparently.
Oh. Real followers, 25,000. I'd hope that this wouldn't be too much, like maybe 500?
201.
Oh, bargain.
That is bargain.
You just also have to like sign away your soul because that sounds so miserable to be buying Instagram followers.
Okay final one.
Final one.
Hannah.
Yes.
How much is a stolen credit card with a balance of 20,000 US dollars on it?
A balance or a limit?
It says a balance but...
Probably a limit.
Limit.
Okay.
20,000 dollars.
So I assume there's also going to be the risk of you've got to use it before that person
blocks it.
Mm-hmm.
Mm-hmm.
A grand. 25-hmm. Mm-hmm. Mm-hmm. A grand.
25 US dollars! What?! Fuck! Well, I've learned absolutely nothing.
But hopefully listeners you have. So there you go. That is the end of our quiz,
Dealer or No Dealer. Well done, everyone.
Now we're going to leave all of the fun behind and get into more tech
bullshit. So let's get back to the story. The FBI have just found the servers that are
hosting Silk Road and they found them in Iceland and they found out that they were being rented
by a person called Frosty. Because the FBI are the FBI, we won't ever actually know
how they found those servers in Iceland, rented by
a man called Frosty.
Yeah, because the other admins on the site didn't know where the servers were.
In fact, even the Dread Pirate Roberts didn't know where the servers were.
The whole point in renting a server through an anonymous service is that the location
is anonymous, even to the person paying for it.
However, the explanation that most people believe is that the FBI broke the law.
Shock horror.
Either the FBI themselves or with the help of the NSA, the FBI gained access to data
in other countries that they were not allowed to view.
Now this might not seem like a big deal, but it means that the FBI almost certainly
draw through countless terabytes of data which was completely unrelated to the Silk Road
and belonged to users way, way, way out of their jurisdiction.
Which once again is setting my LL fucking Spidey Census tingling because that is bad
vibes.
However… That is bad vibes. However, in terms of our story, it doesn't really matter how the FBI found the Silk Road
service.
It just matters that they did.
But for the sake of your fucking security, it does.
Cut it two years time and you're suddenly a prepper living underground.
So now the FBI had the physical server.
Agents were able to view every message, every sale and every transaction that
had ever happened on Silk Road.
And it also meant that in theory, the FBI could shut down the whole operation.
Did they? No. And when we
all found out about that, the FBI did get quite a lot of stick given that they technically
helped to run Silk Road for a number of months before it was eventually closed. But in fairness,
if the servers got shut down, nothing would have changed.
Yeah, it's again very, very similar to the story in Hunting Warhead.
They got a lot of sick for why didn't you just shut down Charles
Play as soon as you got access to it?
But then they wouldn't have caught anybody.
Exactly.
And Silk Road and Charles Play would have gone down for a few days,
maybe even a couple of weeks, but they would have popped up again, hosted
by a completely different anonymous server somewhere else in the world.
And the FBI would have had to start all over again.
Whereas if the FBI kept things quiet and let the business run as usual, a la Hunting
Warhead, then Dread Pirate Roberts would be very exposed and none the wiser.
Besides, the server had already given them some key information.
The user, Frosty, who rented the Silk Road server, logged in from somewhere in San Francisco,
California.
Silk Road was now in serious trouble.
Because in a backroom of the FBI, a much less glamorous team was also working on destroying
the world's biggest online drug marketplace.
The tax inspectors.
Woo!
They're here!
Hooray!
Woohoo!
And much like Al Capone, it would be them that would catch up with Silk Road.
One of these tax gremlins was Gary Alford.
He was tracking all of the bitcoin that went through Silk Road.
Bitcoin may not be untraceable, but Gary still wasn't getting anywhere.
All the money was just jumping from one anonymous wallet to another, none of which could be
connected, like we said earlier, to a real life identity.
So in his spare time, Gary, who sounds like a right laugh, started doing some
research of his own into Silk Road using Google.
On his weekends, Gary started searching for mentions of Silk Road before the
article in Gawker was published.
Again, if he was a detective and he
was just working his spare time to crack this child, we'd be like, Gary's a hero. He's what
we're missing from law enforcement and the government competence and hard work. And we're
like, fuck you, Gary. Narxilla. Anyway, what he's doing is looking for people who knew about Silk
Road before it went mainstream,
which is why he's looking for posts that happened before the Gawker article.
And in time, Gary found someone posting on a hallucinogenic mushroom forum asking if
anyone had tried Silk Road and prompting users to give it a go and then report back. That post had been submitted by a user called Altoid,
and Altoid had been a very busy person.
Altoid posted similar listings
on a number of different forums,
all pushing people to try Silk Road,
almost as if they were advertising it.
Gary then searched for posts by Altoid,
made before Silk Road was set up, and voila.
He found a series of posts on a Bitcoin forum discussing setting up an anonymous marketplace
on the dark web.
There were several posts asking for help and advice on this anonymous project.
The last post from Altoid that Gary found was written in October 2011,
after Silk Road had gone viral.
And in this post, Altoid asked
if anyone was interested in participating
in such a project,
and if they were, they should contact them.
And then, this is so fucking dumb,
Altoid listed their real life email address. Nooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo Fucking hell Ross. Sir Ross Elbrick was born in March 1984 to a middle class family in Austin, Texas.
He was hard working, if a little goofy, and as a teenager became an Eagle Scout just like
his father Kirk.
Ross was also a maths prodigy and got a full scholarship to the University of Texas to
study physics.
Then he got another full scholarship to Penn
State to study material science and engineering. Once he got to Penn State, Ross's outlook
on life began to change, and with the speed of a feckless philosophy student, Ross became
obsessed with libertarianism and Austrian economics.
Ugh, is your favourite philosopher Nietzsche? Fucking grow up.
So after graduating from Penn State, Ross told his mum
that he no longer was interested in engineering. He was going to run an online bookshop instead.
And I've watched a documentary about Jeff Bezos and everyone laughed at him too.
This bookshop sold secondhand books nationally and donated a portion of those proceeds to a local charity.
Bezos didn't make it by giving to charity and neither did Ross. It wasn't long before
the bookshop went bust.
And it was shortly after the collapse of his book dream that Ross posted a very long and
rambling update on his LinkedIn of all places. Worst place to post long rambling updates.
Don't do it.
It doesn't make you look particularly hireable, does it?
No. Don't. That's the last place you should be posting that kind of shit.
That's why Reddit exists.
Ross wrote,
My goals have shifted.
I want to use economic theory as a means to abolish the use of coercion
and aggression amongst mankind.
Oh, no. Ross.
Sounds like the start of a manifesto.
He went on to write, I am creating an economic simulation to give people a first-hand experience
of what it would be like to live in a world without the systemic use of force.
I think someone's been on too many hallucinogenic mushroom forums.
That's what I think.
So after he posted that, Ross moved to Sydney in Australia to live with his sister,
whose name is Callie.
His family thought he was freelancing in computer finance while he was out there.
He wasn't.
After this stint in Australia, Ross returned to America in 2011 to begin working on a new
and undisclosed project with his friend, Renny Pinnell.
The pair even filmed a 30-minute interview between themselves documenting their new chapter.
So apparently the idea that Renée had was so lucrative, he managed to convince Ross to come back to America and join him in San Francisco.
Now back to Gary, the tax gremlin and a stand-up guy at his work.
Man doing good job.
Well he found this 30 minute video that Rennie and Ross had filmed and he also found the
LinkedIn post and he also of course found Ross's actual email address.
Which is his name!
With his fucking full name in it.
I'm surprised he didn't also include his mother's maiden name in his first fucking
page. Yeah, picture of his face. full name in it. I'm surprised he didn't also include his mother's maiden name in his first fucking pet. And the worst thing is that Gary found all of this through a simple
Google search. So Gary scuttled off to his mates at the FBI. But no one was that bothered.
Everyone was far too focused on the IP address linking Dread Pirate Roberts to San Francisco.
Excuse me guys, I've got an idea. Shut up, Gary.
Yeah, this is the thing.
They're all like so tied up with the highbrow technical side of it that Gary's just literally
fucking googled this and found this through some good old fashioned detective work, you
know?
So Gary went over their heads when he got ignored by everyone at the FBI and he went
straight to his supervisor.
Luckily, his boss had the sense to get Gary on a call with the DEA, Homeland Security
and again the FBI.
But again, nobody particularly cared about what Gary had to say. They'd never heard
of anyone on the Silk Road posting under the name Altoid or someone called Ross Ulbrich.
Why don't you just put one person on following up with Gary?
You haven't got one intern that can just do this Google search and double
check Gary's work?
The arrogance of it all.
So the call was almost over when Gary offhandedly said that he had also seen
some posts which he thought were from Ulbrich using another moniker, Frosty.
He said that he couldn't be sure though, and that's why he hadn't brought it up at first.
At this point, the call went silent.
Everything clicked.
Frosty owned the Silk Road.
Frosty was the Dread Pirate Roberts,
and the Dread Pirate Roberts was Ross Ulbricht.
Sob!
But still, the FBI needed a lot more for an arrest.
And that would be tricky.
Anything that physically connected Albricht to the Silk Road would be encrypted and hidden
deep on his own computers.
Unless the FBI caught Albricht actually logged in to Silk Road, it would be impossible to
prove that he was Stread Pirate Roberts.
So undercover agents began staking out Ulbricht's home in San Francisco, a place he'd found
on Craigslist and rented under a fake name. It soon became clear that whenever Ulbricht
signed into Silk Road, he did so from a public library. Which is a good idea for an online drug lord, but it also
left him incredibly vulnerable offline in the real world.
Once it was established that Ulbricht was signing into Silk Road via the library, it
was simple enough to lure him there.
On the 1st of October, the DEA and FBI ran a sting operation to catch Ulbricht logging
in as the Dread Pirate Roberts
in that public library. An undercover agent who had established themselves as a trusted seller on
the site, messaged the Dread Pirate Roberts, asking for some help with an order. And sure enough,
Ulbricht left his house and travelled to the local library to respond to this message.
Agents followed Ulbricht on this journey and watched as he walked into a library
filled with even more undercover agents.
Albrecht sat down, unfolded his laptop,
and logged into the Silk Road.
At this very moment, a small green circle
lit up on the Silk Road's messaging service.
The Dread Pirate Roberts was online.
Two agents staged a loud argument behind Albrecht, who spun around to watch the commotion.
As he did so, a DEA agent wearing rubber gloves swooped around and grabbed Ross Ulbricht's
laptop.
Ulbricht was signed in as the Dread Pirate Roberts on the Silk Road.
The jig was up.
Ross Ulbricht naturally was arrested arrested and later that same day,
Silk Road servers went down. Ross was held in a jail in Oakland and denied bail based on the
attempted murder of Curtis Green. Prosecutors argued that if Albricht was released then he
might try and take out any witnesses who could make statements against him. After a month,
Ross Albricht was extradited to New York, where he was finally
indicted for a litany of crimes. The 27-year-old middle-class boy from Texas was charged with
conspiracy to traffic narcotics, criminal enterprise, computer hacking and money laundering.
Ross spent the next year in prison awaiting trial, several weeks of which were in solitary
confinement. While this wasn't ideal for
him, it did give his legal team, led by Joshua Dratil, the opportunity to create a multi-faceted
defence.
When the trial began in December 2014, the word on the street was that Albrick's team
were confident. So confident, in fact, that they had rejected a plea bargain. However, from the moment the trial began, it became incredibly clear that their confidence
may have been misguided.
Their first form of defence was attack, as Joshua Draytel tried to have the case dismissed
altogether because of the shit the FBI pulled on finding that server in Iceland, because,
as we already know, there was strong evidence to suggest that the server in Iceland had been hacked by the FBI without a warrant.
Which is so many different kinds of illegal and also, as we discussed earlier, kind of
the only way they can have done it.
Yes. And so if this was true, which like Hannah just said, seems like the only way that they
could possibly have found this information, then therefore any evidence collected through that illegal hacking should have been
inadmissible in court. And that means there would have been a mistrial or at
the very least it would make an enormous amount of damage to the prosecution's
argument. But no dice. The judge dismissed this request unsurprisingly.
So Dreytal tried something different, rewriting the narrative. Dreytel said,
sure, Albritt had set up Silk Road, but he'd never been Dread Pirate Roberts. They argued that
Albritt had actually sold the site to another user in the middle of 2011 and hadn't been involved
with it since, a story that was backed up by the interview in Forbes. The defense also argued that
several people had been operating as the user known as DreadPirateRoberts
which of course is what the name suggests.
And that meant that even if Ulbricht had been able to log in as DreadPirateRoberts to the
site, there was absolutely no way of proving what had been written by him and what had
been written by someone else.
Therefore, it was impossible to prove that Ulbricht had ordered the
hit on Curtis Green. And to be fair, that is a logical argument, plausible even. And on top of
that, Ulbricht's libertarian ideals didn't really leave that much room for murder. And neither did
the ideals of Dread Pirate Roberts. Whoever had been posting long essays on Austrian economics and
running their own book club on Silk Road didn't really seem to have that much in common with
the Dread Pirate Roberts who'd been asking to have people killed.
Actually, we've seen several ex-Silk Road admins stating that they knew for a
fact there was more than one person using the Dread Pirate Roberts account.
And that makes sense.
It's not like Amazon's Twitter account is run by a singular person. Why would one person run Silk Road's main form of communication?
It's a big job.
Yeah. I mean, we've got a team of six and we run a podcast.
And we're still exhausted all the time.
Yes. But regardless, this argument didn't get very far in the courtroom. During cross
examination, Dreytel did manage to prove that one of the undercover
agents who'd been talking to Dread Pirate Roberts had long suspected he was talking
to more than one person. However, this was dismissed as hearsay and the line of questioning
was struck from the record. The defence was then forbidden from questioning witnesses
on other potential suspects.
On the other hand, the prosecution argued that Ulbrich had been logged into the Silk
Road at the time he had been caught, and that there were journal entries and bitcoin on
his laptop that proved he had been running Silk Road.
And unlike the evidence from the FBI, this was pretty watertight.
Dreytal then tried to bring in an expert witness who could help explain to the judge and jury
how Tor worked, how the Silk Road was encrypted
and how it was impossible to pin it all on one person.
However, again this was denied by the court who felt that no further explanation was needed.
How are you going to tell me that no further explanation on all of those very very complicated
technical things are needed for a jury that probably is made up of people that haven't
got a fucking clue?
Josh Straitill and his team had run out of lifelines for Ross Ulbricht.
The trial ended abruptly the next day, with the defence unable to submit anything worthwhile
in the case.
And so, Ross Ulbricht was convicted on seven counts, distributing narcotics, conspiracy
to commit money laundering and conspiracy to commit computer hacking being among them.
But interestingly Ross was never charged with murder for hire. So the attempted murder of
Curtis Green that Dreadpire Roberts ordered. Although that crime was used to keep the identities
of some witnesses in the trial anonymous and it also put restrictions on the defense's
line of questioning, which
they can't really do if he hasn't been charged with it. Tricky stuff.
Ultimately, Ross Ulbricht was given a whole life sentence with a minimum term of 30 years.
And the judge had this to say about his libertarian ideals.
No drug dealer from the Bronx selling meth or heroin or crack has
ever made these kinds of arguments to the court. It is a privileged argument. It is
an argument from one of privilege. You are no better a person than any other drug dealer
and your education does not give you a special place of privilege within our criminal justice
system. Ouch. So where does that leave us?
Was Ross Albricht the Dread Pirate Roberts?
Probably, at some stage.
His ideals certainly match with those posted by the notorious
admin of Silk Road and also some journals and Bitcoin on
his laptop.
And the fact that he was logged in as Dread Pirate Roberts
do seem to point in
that direction too. That's quite difficult to argue with. But did he order the hit on
Curtis Green? Maybe. I mean, it's impossible for us to know for sure, but it does seem
a little bit out of character for him. So let's zoom out and have a look at the bigger
picture. Did Silk Road back up the big social claims made by Ross
Albrecht? Did he really create an economic simulation to give people first-hand experience
of what it would be like to live in a world without the systemic use of force?
Well, according to Judith Aldridge, a law professor at the University of Manchester,
and David Dikari-Hetu, her counterpart at the University of Montreal.
Maybe.
This pair published a paper in May 2014 that described the Silk Road as a quote paradigm-shifting
criminal innovation.
And I would have to agree with that.
They said that the risk to both the dealer and the user had been reduced massively by
Silk Road.
Although, as many others have pointed out, it doesn't negate the other human tragedies involved in the production of drugs, it simply makes them safer for those people using them.
And finally, what is the legacy of the Silk Road?
It's believed that over the site's lifetime, about 1.2 million transactions took place
with around 9.5 million bitcoins.
From that it's believed that Ross Ulbrich alone took around 600,000 bitcoins in commission.
The value of bitcoin between 2011 and 2012 was pretty volatile, but by taking a rough
average of around $200 per bitcoin or so, this would point to a turnover of around $1.8 billion that
the website was taking, with the Silk Road slash Dread Pirate Robert slash Ross Ulbrick
making around $120 million in commission.
However, the price of Bitcoin has risen in the 10 years since the Silk Road was seized,
to around $22,000 per Bitcoin. So this would mean that the total value of the Bitcoin made on Silk Road in 2023 is roughly
$14 billion.
Meaning that if Ross Ulbrich still has access to just 10% of his earnings through the Silk
Road, he's still within the top 3000 richest people on the planet.
And this is the thing, everyone was trying to shut him down because of the money.
Let's be clear, if they could have got a piece
of that tasty, tasty tax pie, no one gives a fuck.
Uh-uh.
But we're gonna leave you with some thoughts
about drugs and the dark web.
As we proved earlier with our dealer or no dealer quiz,
the hidden internet is
utterly filled with marketplaces to buy all of your favourite narcotics. Although, it
has to be said, the idea of not selling anything designed to harm or defraud, which of course
was one of the central tenets of Silk Road in the beginning, has totally gone out of
the window now. Most of these dark web marketplaces are filled to the brim with stolen credit cards,
passports and counterfeit cash.
Yeah, so there's that.
And also, again, I'm not going to pretend that drugs don't cause harm.
Of course they do, like, let's make that very, very clear.
I think here it's just this idea of these things were happening anyway,
and this guy or these people who set this up were trying to set up a website in which the user could be safer because if they were going to buy anyway, they don't have to go into a shady back alley and buy drugs from a random person who might end up murdering them.
Exactly. They can buy it from the safety of their own home and trust in the quality of the product that they were buying. Whether you choose to do it or not, it's not a good thing. It's not good for you. But if that's the ethos of Silk Road, which it very much seems like it was, then sure.
Yeah, so there you go.
Silk Road, Dread Pirate, Robertson, poor old Ross Albrecht.
Done. Tick. Check it out. Red-handed goes digital.
So yeah, that is it guys and we hope you enjoyed it.
We'll be back next time for some other things.
Hooray!
Bye. A man who redefined fame, fortune and the music industry. The first male rapper to be honored on the Hollywood
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Did he built an empire and live the life most people only dream
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