Silk Road Seizure, Is it A Jolt to Bitcoin

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Silk Road Seizure, Is it A Jolt to Bitcoin
Silk Road Seizure, Is it A Jolt to Bitcoin

As the FBI Seizes Bitcoins worth approximately $3.6m, Bitcoin Prices Tumble

Bitcoin economy has seen one of the worst moments in its almost five years’ of existence. As the FBI seized Bitcoins worth approximately $3.6m, the value of the virtual currency dropped drastically. It is a major jolt that may have a great impact on the future of Bitcoin. Recently, Bitcoin has been in the news for good and bad reasons; however, this one is definitely going to tarnish the image Bitcoin is being used for.

Whereas efforts are being taken by various bodies and some individuals to get acceptance for Bitcoin among people and authorities, the new episode is definitely going to have an irreversible damaging impact on the efforts. A large number of venture capitalists too started showing their interest in the virtual currency; however, with the seizure of Silk Road, they might be wary.

Silk Road Has Always Been in the Favorite Whipping Boy for Critics

Ross William Ulbricht, the alleged operator of Silk Road has been charged for money-laundering and narcotics-trafficking. Silk Road that allowed Bitcoin users to buy drugs and guns on the site using the virtual currency has always been a perfect whip boy for critics. According to Bitcoin critics, Silk Road gave a perfect example how Bitcoin can be used by all those who are involved in terrorist and criminal activities.

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According to these critics it was just a matter of time when the FBI was going to take action against Silk Road and nab it for its illegal activities. However, this time they not only seized the Bitcoin the company had but also arrested its founder, Ross William Ulbricht, a 29-year-old former physics student from San Francisco.

Charles Schumer, a Major opponent of Silk Road

Silk Road first caught the eyes of Charles Ellis “Chuck” Schumer, the senior United States Senator from New York and a member of the Democratic Party, when he found that the Silk Road was actually setting an example for terrorists and criminals, and guides them how Bitcoin could potentially be used for terror or criminal activities.

Charles Schumer was vocal against Silk Road and criticized it saying that this organization is allowing buyers and users to sell illegal drugs online, including heroin, cocaine and meth, and users do sell by hiding their identities through a program that makes them virtually untraceable. For him Silk Road was a certifiable one-stop shop for illegal drugs.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com

  • Robert

    The US government is sponsoring terrorism not silk road. How does this hurt Bitcoin? It just removes what some construe as an ’embarrassment’.

  • Robert

    The Federal Government is sponsoring terrorism not Silk Road. Look it up NYT. How does this harm Bitcoin? It just removes what some construe as an ’embarrassment’. Interesting if the FEDS want to complete their theft of the money they will have to sell their Bitcoins. They are the thieves. Maybe they will use their new found Bitcoins to target other businesses.