Federal Agent Says He Secretly Infiltrated Silk Road

NEW YORK — A federal agent suggested jurors on Wednesday he covertly turned an employee of the website online Silk Road, chatting with its operator about "rattling regulators" minutes sooner than authorities arrested the individual they think about ran the online black market. Jared Der-Yeghiayan, a U.S. Division of Homeland Security specific agent, testified in Manhattan federal courtroom that in July 2013 he took over a Silk Road moderator’s account and took half inside the arrest of its suspected operator, Ross Ulbricht. The testimony obtained right here on the second day of Ulbricht’s authorized trial. He faces seven counts along with working a unbroken authorized enterprise and conspiracy to commit narcotics trafficking. Silk Road was an web black market bazaar the place clients may anonymously buy drugs and totally different illicit gadgets using bitcoins. Prosecutors say it operated from 2011 to October 2013, producing $200 million in drug product sales. Ulbricht, 30, admits that he created Silk Road, nevertheless his lawyer said Tuesday he was the "fall man" for its true operators on the time of his arrest in October 2013.

By way of the trial Wednesday, Der-Yeghiayan said he turned a Silk Road moderator after a assist staff member known as "cirrus" gave him entry to that account. He reported to the website’s operator "Dread Pirate Roberts," and earned $1,000 each week in bitcoin, he said. After an IRS agent flagged Ulbricht as a result of the Dread Pirate Roberts’ attainable alter ego, Der-Yeghiayan said he turned part of an operation to aim to affirm that and arrest Ulbricht.

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— Reuters
First revealed January 14 2015, 5:08 PM