Tech
Who is Ross Ulbricht?
Ross Ulbricht is an ex dark web market operator most famous for creating and managing the The Silk Road market. He was arrested in 2013, and two years later a federal jury in Manhattan found him guilty of seven counts, including conspiracy to launder money, conspiracy to commit computer hacking, conspiracy to traffic narcotics through the Internet and continuation of a criminal enterprise, the main charge. Ulbricht used the alias “Dread Pirate Roberts” and was sentenced to life in federal prison in 2015.
Key points
- Ross Ulbricht, the “Dread Pirate Roberts” of the Internet, founded and ran the darknet marketplace Silk Road from 2011 to 2013.
- The site was a marketplace for drugs paid for with cryptocurrency.
- Ulbricht was indicted on seven counts, including conspiracy to commit money laundering, conspiracy to commit computer hacking, conspiracy to traffic drugs via the Internet and continuing a criminal enterprise.
- In 2015 Ulbricht was sentenced to life in prison.
Investopedia / Ellen Lindner
Silk Road
Ulbricht grew up near Austin, Texas, studying physics at the University of Texas at Dallas and then enrolled at Pennsylvania State University to earn a master’s degree in materials science. Ulbricht founded Silk Road in 2011, calling himself “Dread Pirate Roberts” online.
According to his LinkedIn page, he envisioned the site as “a means of abolishing the use of coercion and aggression among humanity.” Ulbricht was “creating an economic simulation to give people first-hand experience of what it would be like to live in a world without the systemic use of force.” By adopting encryption and cryptocurrencythe market provided anonymity and security to its participants, using Tor encryption AND Bitcoin.
“Silk Road” became popular in a short period. When numerous media outlets picked up the market stories in mid-2011, interest grew and traffic increased exponentially. Silk Road remained a protected marketplace where legal and highly illegal activity occurred until 2013. The site was used by over 100,000 users who bought and sold $200 million worth of illegal goods and services.
Ulbricht, a first-time offender, didn’t sell illegal drugs and other items, but created and ran a site where others did.
Found guilty
The FBI investigated users of the site, eventually identifying Ulbricht as the founder and owner of Silk Road. Ulbricht was arrested and the FBI seized his laptop on October 1, 2013. The Silk Road website generated over $13 million worth of Bitcoin commissions. The FBI seized 144,336 bitcoins from a digital wallet shared on Ulbricht’s laptop. They were sold in a series of auctions generating proceeds of $48.2 million.
Ross Ulbricht was convicted on all seven counts in February 2015. The trial was a highly publicized and accusatory event, with the presiding judge reportedly receiving death threats from alleged Silk Road supporters, although this is not never been proven.
Before his sentencing, Ulbricht stated, in a letter provided to the judge, that his actions were tied to his libertarian ideals and that “Silk Road was supposed to give people the freedom to make their own choices.” On May 29, 2015, Ulbricht was sentenced to two life sentences plus 40 years to be served concurrently.
On September 23, 2013, the Silk Road home page advertised 13,000 listings for controlled substances, listed in categories such as “Cannabis,” “Dissociatives,” “Ecstasy,” “Intoxicants,” “Opiates,” “Precursors,” “Prescription,” “Psychedelics” and “Stimulants”.
Appeals
Ulbricht attempted to appeal, and in May 2017 the U.S. Court of Appeals for the Second Circuit denied his attempt. Also in 2017, Ulbricht appealed to the Supreme Court, with lawyers arguing that his case involves unresolved constitutional issues regarding the Fourth Amendment and the digital age. In June 2018, the court declined to hear Ross’ case.
In late 2020, national media reported that former President Donald Trump was considering commuting Ulbricht’s sentence, but ultimately did not do so. Since Ulbricht’s incarceration, more than 570,000 people have signed an agreement online petition created by Lyn Ulbricht, Ross’ mother, to commute his double life sentence.
How long is Ross Ulbricht’s prison sentence?
On May 29, 2015, Ulbricht was sentenced to two life sentences, plus 40 years, to be served concurrently without the possibility of parole.
Was Ross Ulbricht involved in the creation of Bitcoin?
While darknet sites were early adopters of Bitcoin, Ross Ulbricht did not develop any cryptocurrency.
Does Silk Road Market still exist?
The FBI shut down Silk Road shortly after Ross Ulbricht’s arrest, seizing 144,336 bitcoins.
The bottom line
Ross Ulbricht is infamous for creating and running the Silk Road market, and a federal jury found him guilty of seven counts, including conspiracy to traffic narcotics. He was sentenced to spend the rest of his life in prison.