Bitcoin currency was hailed as revolutionary not long ago. But as time goes by, more and more uncertainty is clouding the ambitious project.
What is now more clear however, is how the formation of a parallel currency, unrecognized by the market, just like alternative banking venues, can quickly be seized by criminal organizations for use in laundering and moving money around the globe,
A new operation just seized 28 million in the currency, from the owner of a company called Silk Road, a marketplace that was connected with narcotrafficking and criminal organizations and ordered closed by international crimefighters.
The loot was seized from a private owner, who had acquired the bitcoins from the remains of Silk Road, a person known as Dread Pirate Roberts, who is now indicted for conspiracy to commit illegal actions and other counts.
The Silk Road Site, now shuttered, had been employed by counterfeiters and all sort of criminal enterprises, including payment sites for professional hitmen.
Many of the almost one million people employing the site were using the bitcoins to pay for illicit drugs.
This seizure is part of a worldwide crackdown on bitcoin trades, with the loot so far up to 33 million in value.
The total traffic of bitcoins in the past decade through Silk Road topped 1.2 billion, say police authorities. The commission charged for each trade could top 10% of the trade value.
Source : The Guardian/ 10.26.13
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