Silk Road alternatives emerge as public hammers FBI bitcoin wallet

“Among advertisements for bitcoin exchanges, pleas for charity, and sideways references to the X-Files, was one wag who seemed intent on Rickrolling the FBI. Repeatedly.  Black Market was one of the sites listed in a note sent with a bitcoin transaction to the FBI’s blockchain.info address. That sender also posted the Tor link to another, called Sheep Marketplace.  Others are proposing alternatives that move entirely outside the Silk Road system, in which a central arbiter held bitcoins in escrow, releasing them when both parties to a transaction were satisfied.”

http://www.coindesk.com/silk-road-alternatives-emerge-public-hammers-fbi-bitcoin-wallet/

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Hunt for Silk Road users and Bitcoin fortunes intensifies

“Britain’s newly unveiled National Crime Agency (NCA) flexed its muscles Tuesday when it detained four suspected drug offenders who used the ‘anonymous’ services provided by Silk Road, dubbed the ‘Amazon.com of illegal drugs.’  The agency’s director general, Keith Bristow, gave fair warning to other Internet drug dealers to be prepared for further crackdowns. ‘These latest arrests are just the start,’ he said. ‘There are many more to come.’ ‘This is only the start of a wider campaign for the NCA to tackle the ‘dark’ or ‘deep’ web and the criminals exploiting it,’ Andy Archibald, head of the UK agency’s National Cyber Crime Unit, said in a statement.”

http://rt.com/news/silk-road-bitcoins-us-britain-934/

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Bitcoin, Encryption, Drug Use, and the FBI’s Own Bitcoin Wallet

“One of the alleged reasons for the war on drugs is to prevent money from getting into the hands of terrorists. But if drugs were legal, prices would crash,  theft would plunge (drugs are expensive and addicts don’t have the money),  and terrorists would not make anything off drugs. Millions in prisons would not be there, and the pension problem of states would be far less.  Clothes would be made out of hemp, which has fiber softer than cotton. Hemp plants and seeds can be converted into biofuel far better than corn (which requires high quantities of fertilizer and water, and needs to be replanted every year).  Yet the extremely costly war and economically asinine war on drugs continues. Why?”

http://globaleconomicanalysis.blogspot.com/2013/10/bitcoin-encryption-drug-use-and-fbis_8.html

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How Statism Corrupts Society

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“Ladar Levison owned Lavabit, a secure, encrypted, email service. He would turn over individual customer records, including Edward Snowden’s, under lawful court orders. As the New York Times reports, the FBI wanted FAR more: ‘the passwords, encryption keys and computer code that would essentially allow the government untrammeled access to the protected messages of all his customers.’  Levison resisted and ultimately closed his business rather than harm his customers. He had to layoff an employee, lost ten years of work, and lost his income. He was then threatened with arrest SIX times! He was also prohibited from publicizing details of the case for almost two months.”

http://www.downsizedc.org/blog/how-statism-corrupts-society

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Ex-Black-Market Employee Believes Feds Only Woke A Monster

“To those who are mourning the loss of Silk Road  you have little to fear.  From a quick scout around I’ve counted at least 5 publicly stated projects with the said aim of becoming ‘Silk Road 2.0’ and many more gathering info and building alliances.  And this is what Law Enforcement is now parading as a victory? Over two years of investigation, millions of dollars spent so a couple of armchair programmers can build it again in a few days while in the meantime vendors simply move to other sites.  To make it easier there is already a functioning open-source project know as BitWasp which can simply be downloaded and installed on an onion web server and the next SilkRoad is (almost) ready to go.”

http://atlantisblog.org/silk-road-subdued-but-this-ex-blackmarket-employee-believes-they-only-released-a-monster/

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The FBI’s Plan For The Millions Worth Of Bitcoins Seized From Silk Road

“The spokesperson says the approximately 26,000 Bitcoins seized are just the ones that were held in Silk Road accounts. In other words, it’s Silk Road users’ Bitcoin. The FBI has not been able to get to Ulbricht’s personal Bitcoin yet. ‘That’s like another $80 million worth,’ she said, explaining that it was held separately and is encrypted. If that is indeed what he’s holding, that’s close to 600,000 Bitcoin all together or about 5% of all Bitcoin currently in existence.  Thanks to the transparency of the Bitcoin block chain, Reddit has located what looks to be the FBI’s Bitcoin wallet; there’s an influx of 27,000 Bitcoins into it starting on Wednesday, October 2.”

http://www.forbes.com/sites/kashmirhill/2013/10/04/fbi-silk-road-bitcoin-seizure/

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NSA and GCHQ target Tor network that protects anonymity of web users

“The National Security Agency has made repeated attempts to develop attacks against people using Tor, a popular tool designed to protect online anonymity, despite the fact the software is primarily funded and promoted by the US government itself.  Top-secret NSA documents, disclosed by whistleblower Edward Snowden, reveal that the agency’s current successes against Tor rely on identifying users and then attacking vulnerable software on their computers. One technique developed by the agency targeted the Firefox web browser used with Tor, giving the agency full control over targets’ computers, including access to files, all keystrokes and all online activity.”

http://www.theguardian.com/world/2013/oct/04/nsa-gchq-attack-tor-network-encryption

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Tor and the Silk Road takedown

“Tor does not anonymize individuals when they use their legal name on a public forum, use a VPN with logs that are subject to a subpoena, or provide personal information to other services. See also the list of warnings linked from the Tor download page.  Also, while we’ve seen no evidence that this case involved breaking into the webserver behind the hidden service, we should take this opportunity to emphasize that Tor’s hidden service feature (a way to publish and access content anonymously) won’t keep someone anonymous when paired with unsafe software or unsafe behavior.”

https://blog.torproject.org/blog/tor-and-silk-road-takedown

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Fifty Ways to Leave Leviathan

“Compared with politics or the slow road of mass education, the work of hacking Leviathan through innovation is a promising road forward. Something’s happening. It’s like the Singularity for civil disobedience. Pandora’s box. Perhaps a series of innovation tidal waves. A whole lot of people are participating in a great unfolding. And if you’re drawing up grand social engineering plans, throw them out. The world is about to get a lot more dynamic.  Here are just 50 ways people are working around State obstacles.”

http://www.fee.org/the_freeman/detail/fifty-ways-to-leave-leviathan

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Snowden’s E-Mail Provider Defied FBI Demands to Turn Over Crypto Keys

“Lavabit founder Ladar Levison balked at the demand, and the government filed a motion to compel Lavabit to comply. Lavabit told the feds that the user had ‘enabled Lavabit’s encryption services, and thus Lavabit would not provide the requested information,’ the government wrote.  U.S. Magistrate Judge Theresa Buchanan immediately ordered Lavabit to comply, threatening Levison with criminal contempt — which could have potentially put him in jail.  In an interesting work-around, Levison complied the next day by turning over the private SSL keys as an 11 page printout in 4-point type. The government, not unreasonably, called the printout ‘illegible.'”

http://www.wired.com/threatlevel/2013/10/lavabit_unsealed/

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