Silk Road 2.0: A Cheap Imitation of the Original

Last week it was announced that law enforcement had again taken down illegal Tor markets. Kudos to law enforcement on their apparent success! Although, they took down several such online market places, the one that caught everyone’s attention was Silk Road 2.0, the heir apparent to the original, shut down a little over a year ago. But has anyone really compared the original Silk Road to 2.0? It appears that 2.0 is a cheap knock off or imitation.

The Original

The first Silk Road was in operation from approximately February 2011 to October 2013, roughly 32 months. It reportedly had total sales of about $1.2 billion, earning $80 million in commissions. It also had over 13,000 in drug listings. When it was initially shut down, 26,000 Bitcoins (BTC) were seized from Silk Road accounts, worth approximately $3.6 million at the time. However, there was also 144,000 BTC, or about $28 million, seized from the purported mastermind. We have little information that it was every hacked, at least to any great extent. We have no information to date its fall was due to an undercover agent working on the inside.

Silk Road 2.0

Silk Road 2.0, operated from about November 2013 to October 2014, roughly about 12 months. One particular month’s sales were noted at $8 million. At a 5% commission, this earned the illegal business about $400,000. However, we can’t say they averaged $8 million a month. In fact, shortly after Silk Road 2.0 start-up it was hacked, losing about $1.5 million in BTC. It reportedly had drug listings of about 14,024. We have information that only about $1 million has been seized at the present time. Finally, the complaint reflects that early on an undercover agent was on board, working with the supposedly more “secure” management team.

Looking at longevity, total sales, and amount seized Silk Road 2.0 pales in comparison to the original. The only area Silk Road 2.0 appears to exceeded the original in was total drug listings. However, more listings did not translate into more money. To be fair to Silk Road 2.0, they clearly had more competition than the original. But I think that success is all negated when one considers they were hacked and had an undercover agent working on the inside.

Now we have news that Silk Road 3.0 has started up. Maybe someone should point out to the new Dread Pirate Roberts that this franchise appears to be a dead end. You can’t spend all those earned BTC commissions very well in prison, particularly if they end up being seized. One thing I would point out though, which kind of sends chills up my spine. Both Silk Road and 2.0, were not run by career drug dealers. They were run by tech savvy individuals, with no brick and mortar drug dealing expertise. With the kind of money being made it will not be long, if it hasn’t happened already, that a traditional drug dealer or gang will decide to go “high tech” into Tor’s marketplace. When that happens, this so called “safe” online market place will become a lot more dangerous for those involved. On that thought, I left a cigar lit somewhere.

Additional Reading

More Than 400 .Onion Addresses, Including Dozens of ‘Dark Market’ Sites, Targeted as Part of Global Enforcement Action on Tor Network

Operator of Silk Road 2.0 Website Charged in Manhattan Federal Court

Original Silk Road Complaint

Silk 2.0 Complaint

Silk Road 3.0 Opens for Business

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

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