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Feds bust Bitcoin black market

Some of the Internet’s more nefarious users are likely experiencing “intense panic,” said John Herrman in BuzzFeed.com. Last week the government shut down Silk Road, an online “black market” that uses virtual currencies such as Bitcoin to trade in products, including illegal drugs. Its founder was arrested for money laundering, hacking, narcotics trafficking, and trying to hire a hit man, but he’s not the only one “in serious trouble.” All the Bitcoin assets on the site were seized, so “any money held in a Silk Road account is no longer available to the users who deposited it.” The fallout has left Silk Road users—and dealers—empty-handed. It’s “just a reminder that, as silly as buying and selling drugs on Tor with Bitcoins sounds, it’s still buying and selling drugs.” Silk Road has processed hundreds of millions of dollars worth of orders in the virtual currency, so “the ripple effects of this shutdown will be massive.”

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