Federal Brokers Accused of Stealing Bitcoins Throughout Silk Street Investigaton

A pair of former federal brokers stole greater than $800,000 value of bitcoins whereas investigating the underground on-line black market Silk Street — and one in every of them allegedly bought details about the investigation to Silk Street members, based on a Division of Justice grievance unsealed on Monday.

The 2 males have been particular brokers assigned to the Baltimore Silk Street Activity Pressure, which spearheaded the investigation that led to the FBI’s shutdown of Silk Street in 2013. The DOJ’s grievance alleges Shaun Bridges of the U.S. Secret Service took $800,000 in bitcoins he gained management of in the course of the investigation and put it into a private account.

Carl Drive of the Drug Enforcement Administration (DEA) was an spy through the Silk Street investigation, chatting on-line with the chief the location. Like Bridges, the DOJ alleges, Pressure put bitcoins acquired as a part of the investigation into his personal account. The grievance additionally accuses him of promoting details about the federal government’s investigation to the chief of Silk Street, investing in and dealing for a bitcoin change firm whereas he nonetheless labored for the DEA, and directing that firm to freeze a buyer’s account so he might funnel these funds into his private account. The DOJ additionally alleges Pressure despatched an unauthorized DOJ subpoena to an internet cost service so the corporate would unfreeze his private account.

The DOJ charged Bridges with wire fraud and cash laundering. Pressure faces the identical expenses, plus theft of presidency property and battle of curiosity.

IN-DEPTH

– Julianne Pepitone
First revealed March 30 2015, 12:05 PM