The craziest crypto scams and hacks: Part 3: Drug dealers, black markets, Secret Service Agents, and a ton of stolen Bitcoin - Crypto in Plain English - Episode 127 - by cryptohunt.it

The craziest crypto scams and hacks: Part 3: Drug dealers, black markets, Secret Service Agents, and a ton of stolen Bitcoin

Welcome to the cryptohunt jam where we spend one minute a day on crypto and its history. In plain english.

Today's episode is wild: Get ready for a story about drug dealers, black markets, Secret Service Agents, and a ton of stolen Bitcoin.

It all started with Silk Road, the infamous online drug marketplace operating in the dark shadows of the internet. Operated by Texas native Ross Ulbricht between 2013 and 2015, Silk Road connected drug dealers with over 100,000 buyers.

The kicker? Payments were in Bitcoin, a fact that still gives the crypto currency a bad reputation to this day.

A joint task force eventually found and arrested Ulbricht. And over years of meticulous detective work, they got their hands on over $1 billion worth of Bitcoin connected to Silk Road.

But soon after Ulbricht’s arrest, another suspicion cropped up: It seemed as if some of the sized funds were suddenly missing. And in fact, 1500 Bitcoin, today worth over $60 million, were removed from some wallets. How did this happen with Ulbricht in prison?

Turns out: The government had a bad apple within their own ranks: Secret Service Special Agent Shaun Bridges had transferred the crypto to his own wallets, presumably thinking that nobody would notice the comparatively small amount.

Bridges got sentenced to jail time after trying to flee the country. But it doesn't stop there. Prosecutors uncovered that he actually tried to steal even more Bitcoin after his first sentencing.

What Bridges probably didn't think about: It's hard to hide your tracks, if all the evidence is on the public blockchain. But the damage is long done: The argument that crypto is only for criminals can be heard everywhere. We'll let you be the judge on that one. ;)

And tomorrow: How a fake public offering turned into a $4 billion scam.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.