Transcript FBI shuts alleged online drug marketplace, Silk Road

Drugs, the Internet, MoneyLaundering and Shell Companies
Tom Bergin
• Online Drug dealing
• Internet Payment Systems
• Shell companies
Drug dealing online
• “FBI shuts alleged online drug marketplace,
Silk Road”
• “Silk Road: The eBay of Illegal Drugs”
• “After Silk Road's demise, online drug dealing
moves to new sites”
Source: Reuters, WSJ, The Verge
Life cycle of online drug market
•Early 2011 – Silk Road begins operations
•March 2011 – Gawker reports on the site.
•June 2011 – U.S. Senators ask Attorney
General to crack down on Silk Road
•Nov 2011 – Secret Service co-operating
with overseas agencies on investigation
•Oct 2013 – FBI shuts Silk Road
Challenges of online drug dealing
•
•
•
•
Secrecy
User Confidentiality
Traceability of shipments
Trust
Internet payment systems
Liberty Reserve
“'Black Market Bank' Accused of Laundering
$6 Billion” – ABC News
Mr. A
Bank
Money
Ex.
LRs
Account A
Money
Ex.
LRs
LRs
Account B
Liberty Reserve
Mr. B
Bank
(Unregulated)
Online Money
Exchange
(Unregulated)
Online
Money
Exchange
(Regulated)
B Co.
(Caribbean)
Ltd.
Technocash concedes 'one got
through net' The Australian
Shell Companies