How an IRS Agent Tracked Down the Silk Road's Dread Pirate Roberts

Gary L. Alford was running on adrenaline when he arrived for work on a Monday in June 2013, at the Drug Enforcement Administration office in the Chelsea neighborhood of Manhattan. A tax investigator, he had spent much of the weekend in the living room of his New Jersey townhouse, scrolling through arcane chat rooms and old blog posts, reading on well after his fiancée had gone to sleep.

The work had given Mr. Alford what he believed was the answer to a mystery that had confounded investigators for nearly two years: the identity of the mastermind behind the online drug bazaar known as Silk Road — a criminal known only by his screen name, Dread Pirate Roberts.

When Mr. Alford showed up for work that Monday, he had a real name and a location. He assumed the news would be greeted with excitement. Instead, he says, he got the brushoff.

He recalls asking the prosecutor on the case, out of frustration, “What about what I said is not compelling?”

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Has Silk Road's 'Variety Jones' Been Caught?

Federal prosecutors in New York say a top aide to the Silk Road drug website's founder has been arrested in Thailand.

Manhattan U.S. Attorney Preet Bharara (buh-RAH'-ruh) says 54-year-old Canadian citizen Robert Thomas Clark awaits extradition to the U.S.

IRS Special Agent Gary Alford writes in a complaint unsealed Friday that Clark helped sell heroin, cocaine and other drugs online between January 2011 and October 2013.

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Silk Road Dark Web/Bitcoin Insanity Comes Full Circle With Charges Against DEA, Secret Service Agents

Some DEA and Secret Service Agents Helped Themselves to Silk Road Bitcoins:

The federal government became owners of one of the biggest troves of Bitcoin, thanks to seizing millions of dollars in the digital currency from criminals associated with the online black market Silk Road.

Two federal agents who helped lead one of several investigations in the case allegedly decided they wanted some of the money for themselves, according to a new federal court documents.

The two now-former agents from the Drug Enforcement Administration and the U.S. Secret Service are charged with wire fraud, money laundering and other offenses for allegedly stealing Bitcoin during the federal investigation of Silk Road, an underground illicit black market federal prosecutors shut down in 2013.

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Has Agora Replaced Silk Road as the new Dark Net Bitcoin Market?

For two and a half years, the Dread Pirate Roberts and his Silk Road black market ruled the Dark Web. But last year’s FBI’s takedown of that narcotics smorgasbord opened the underground trade to competitors. Now those sites have a new leader, one that’s bigger than the Silk Road ever was and continues to grow explosively.

The online bazaar for contraband known as “Agora” now has more product listings than any other online black market, according to a report released last week by the Digital Citizens Alliance, a nonprofit focused on internet safety. The analysis counts 16,137 products for sale on the site, which is protected by the anonymity software Tor and accepts only bitcoin. That’s about 200 more listings than Silk Road 2.0, a reincarnation of the original Silk Road launched earlier this year by several of the same administrators. It’s also several thousand more than were offered on the first Silk Road before its seizure in October of last year.

“Just as on the rest of the internet, users on the dark net are very quick to move on to new things and move away from those products and websites that seem stale and old,” says Adam Benson, communications director at Digital Citizens Alliance. “Maybe that time has come for Silk Road.”

The latest numbers for Agora, whose name alludes to an ancient Greek meeting place or market, represent a dramatic shift from just four months ago, when it had only 7,400 product listings. That’s half as many as Silk Road 2.0 hosted at the time. The biggest factor explaining the shift, perhaps, has been the misfortune of Agora’s competitors. In February, Silk Road 2.0 claimed to have been hacked and lost about $2.7 million worth of users’ bitcoins. The market since says it’s repaid 83 percent of the victims of that hack, which affected 40 percent of the site’s active users.

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