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In this episode of American Greed, Silk
Road is an online illegal drug bazaar
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00:00:08,230 --> 00:00:10,270
where millions of dollars change hands.
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00:00:11,410 --> 00:00:16,010
And its mastermind is a shadowy figure
hiding within a secret part of the
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00:00:16,010 --> 00:00:18,270
internet called the Deep Web.
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00:00:18,650 --> 00:00:22,250
If the creator was known and if it was
above board, the guy would have been on
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00:00:22,250 --> 00:00:23,250
the cover of Forbes.
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00:00:23,410 --> 00:00:28,030
This webmaster claims to be an
intellectual with high principles.
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But in reality, there's no honored among
thieves.
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Scattered amongst all those mundane
entries were his criminal activities,
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including ordering the killings of six
different people.
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00:00:40,190 --> 00:00:44,050
Ultimately, it's not only the leader of
Silk Road who loses his way.
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00:00:44,890 --> 00:00:48,910
It's the law enforcement officers sworn
to bring him to justice.
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00:00:50,110 --> 00:00:55,070
The DEA agents and the Secret Service
guys who were ripping off at Silk Road
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00:00:55,070 --> 00:00:56,310
were just in it for the money.
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00:01:13,040 --> 00:01:18,760
You want heroin, opium, cannabis,
ecstasy, psychedelics, stimulants,
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And here they are. They're all listed in
the light of day. It's unbelievable
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00:01:24,760 --> 00:01:27,940
because this whole thing makes you
scratch your head and wonder.
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00:01:28,140 --> 00:01:33,560
The website New York Senator Charles
Schumer is describing is called Silk
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an elaborate online drug marketplace
available to anyone with an Internet
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connection.
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You can see that it was just like eBay
or Etsy or something.
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This was an easily usable and inviting
kind of e -commerce site.
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00:01:50,060 --> 00:01:55,980
Andy Greenberg is a senior head writer
for Wired magazine, who follows Silk
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00:01:55,980 --> 00:01:59,500
Road's development since shortly after
its launch in 2011.
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There were precursors of MDMA and all
kinds of marijuana and stimulants and
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00:02:07,660 --> 00:02:08,660
acid.
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00:02:09,449 --> 00:02:14,190
When Senator Schumer calls for law
enforcement to shut down Silk Road in
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2011, it's much more easily said than
done.
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As Greenberg describes, the difference
between Silk Road and eBay, besides the
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products being sold, is that Silk Road
can't be accessed through a Google
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or a typical Internet browser.
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00:02:32,130 --> 00:02:34,870
Silk Road lives on a hidden part of the
Internet.
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often called the deep web, and can only
be found using a particular type of
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00:02:40,080 --> 00:02:45,680
browser called Tor, which is
specifically designed to hide the user's
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00:02:46,480 --> 00:02:52,240
This is the regular web via Chrome, and
then this is the Tor browser.
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It's almost identical.
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The only difference is you can see that
I think I'm in Germany.
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00:02:58,120 --> 00:03:02,960
Tor used to stand for the onion router,
and it uses this process called onion
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routing,
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bundled up in layers of encryption,
three layers in fact, and then bounced
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00:03:09,680 --> 00:03:15,620
around through three computers in this
network of volunteer nodes all around
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world.
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And that's what the Silk Road did. This
was something that you could only visit
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using Tor, but the Silk Road itself also
ran Tor so that nobody knew who ran the
45
00:03:25,360 --> 00:03:31,520
site. The IP address of anyone buying or
selling on Silk Road and the person
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running it is completely disguised by
Tor's system, making it almost
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for law enforcement to trace.
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00:03:40,220 --> 00:03:45,100
The only method of payment accepted on
Silk Road is the digital currency
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Bitcoin, which uses long alphanumeric
keys to make transactions.
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No usernames or identification are
required, keeping the buyers and sellers
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anonymous.
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00:03:58,220 --> 00:04:00,580
It puts law enforcement in a quandary.
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00:04:01,210 --> 00:04:04,470
This isn't a typical investigation of a
narcotics ring.
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Joshua Behrman is a journalist who
writes a feature on Silk Road for Wired
55
00:04:11,330 --> 00:04:16,910
magazine, and he notes that Silk Road is
both open to the world, yet closed to
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00:04:16,910 --> 00:04:18,510
the scrutiny of law enforcement.
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So it's out in the open, but yet
invisible. It would be sort of like if
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00:04:22,810 --> 00:04:23,810
a drug deal.
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00:04:24,000 --> 00:04:27,700
on the corner, and it turns out they're
a hologram and invisible, and you can't
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00:04:27,700 --> 00:04:31,160
actually put your hands on them. So then
on a grand scale, that's sort of what
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00:04:31,160 --> 00:04:35,440
the company was, too. It was out in the
open, and its creator was very vocal,
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00:04:35,560 --> 00:04:36,560
but was unknown.
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00:04:37,820 --> 00:04:42,260
He writes, I am Silk Road. The market,
the person, the enterprise.
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Everything. I need a name.
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00:04:44,940 --> 00:04:48,740
Drumroll, please. My name is Dread
Pirate Roberts.
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00:04:51,600 --> 00:04:55,380
The name refers to the book and film The
Princess Bride.
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00:04:56,500 --> 00:04:59,420
I know who you are. Your cruelty reveals
everything.
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00:05:00,020 --> 00:05:03,140
You're the Dread Pirate Roberts. Admit
it. We're fried.
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00:05:04,020 --> 00:05:09,240
In the film, the name is passed from one
person to the next, and the idea behind
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00:05:09,240 --> 00:05:12,060
the name means more than the person
using it.
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00:05:12,580 --> 00:05:17,280
And to users of Silk Road, the meaning
behind the name is everything.
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00:05:18,060 --> 00:05:21,320
The Silk Road was not some sort of cyber
criminal scheme.
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It wasn't a kind of drug cartel or just
a mere money -making narco market. It
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00:05:27,620 --> 00:05:28,980
was a political movement.
75
00:05:29,220 --> 00:05:34,140
The Dread Pirate Roberts was this
ideological figurehead who talked about
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embarking on this new era of human
freedom. And I think that the people on
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site really bought into that.
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He was a hero for this community. He was
a kind of leader of a revolution to
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them. Some people have said that they
came for the drug and they stayed for
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revolution. It's a well -funded
revolution.
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The government estimates the site
exchanges as much as $214 million worth
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Bitcoin in just more than two years.
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00:06:01,400 --> 00:06:05,920
But former U .S. prosecutor Thomas Brown
doesn't see the nobility.
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00:06:06,320 --> 00:06:11,900
I think the idea of calling Silk Road a
revolution, I think, vastly overstates.
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00:06:12,540 --> 00:06:17,180
What was actually going on? It was
effectively a criminal speakeasy, really
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lowered the barriers to entry for
illegal activity.
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You could be a 12 -year -old, download
the necessary software, go access Silk
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Road and go buy yourself some heroin,
which I don't really regard as a
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worthwhile revolution, but that's just
me.
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00:06:29,980 --> 00:06:35,020
But Brown's opinion is going to matter
greatly as law enforcement's primary
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00:06:35,020 --> 00:06:37,040
becomes finding Mr.
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Dread Pirate Roberts.
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00:06:40,080 --> 00:06:42,000
Theoretically, he could be anywhere in
the world.
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Little do they know, he's right here in
the USA.
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00:06:48,840 --> 00:06:50,320
When American Greed returns,
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00:06:51,300 --> 00:06:56,580
Silk Road may say it stands against the
drug war, but it ultimately can't avoid
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cartel -style violence.
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00:06:59,120 --> 00:07:03,220
As with so many revolutionaries, he
became a tyrant very quickly.
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00:07:03,440 --> 00:07:05,420
We have to oppose the tyranny of the
government.
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00:07:05,960 --> 00:07:07,180
And then here he is.
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00:07:07,880 --> 00:07:10,020
A year later, saying, well, we've got to
kill this guy.
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Silk Road traffics hundreds of millions
of dollars a year in the sale of
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narcotics and other contraband.
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Yet its leader is entirely unknown to
the general public.
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Achieve scale with no marketing, you
know, with just word of mouth and the
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quality of the service, which in fact
was quite good.
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If the creator was known and if it was
above board, the guy would have been
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like, you know, on the cover of Forbes.
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Strangely enough, in September 2013, he
is.
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I became really determined to not to
figure out who he was.
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I didn't think I could do that, but just
to talk to him.
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Writing a piece for Forbes magazine,
Greenberg gets his wish.
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The man law enforcement can't find
spends five hours with Greenberg on an
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encrypted chat.
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He struck me as a very intelligent and
highly idealistic guy who didn't seem to
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care too much about money but was
incredibly ambitious in terms of what he
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00:08:24,530 --> 00:08:28,310
building. We know he was making millions
of dollars now, but he didn't change
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his lifestyle at all. And he told me
that...
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He had very simple tastes.
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00:08:33,280 --> 00:08:38,659
He enjoyed smoking a bowl of very nice
marijuana at the end of a long work day,
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but he wasn't living in a mansion.
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Then DPR drops a bombshell.
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He told me a story that he wasn't the
creator of the Silk Road. The Dread
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Roberts I was speaking to had acquired
it from the Silk Road's actual creator.
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It fits the Dread Pirate Roberts
mythology perfectly.
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00:09:00,480 --> 00:09:03,220
that one DPR passes the title to the
next.
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00:09:04,060 --> 00:09:05,360
But is it true?
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00:09:06,760 --> 00:09:12,160
The person Greenberg chats with seems to
think he'll always be one step ahead of
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00:09:12,160 --> 00:09:13,139
law enforcement.
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00:09:13,140 --> 00:09:18,560
He totally felt that he was invincible.
He, at least to me, said that he was
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00:09:18,560 --> 00:09:23,820
very confident that all of the three
-letter agencies hunting him weren't
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any progress.
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00:09:24,840 --> 00:09:26,500
Or so he wishes.
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A task force in Baltimore is determined
to get Dread Pirate Robert's hands off
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00:09:32,170 --> 00:09:33,810
the keyboard and into cuffs.
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00:09:34,730 --> 00:09:39,410
And to do so, they resort to a familiar
tactic in investigating drug rings.
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The undercover agent.
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The DEA had an agent on the Silk Road,
undercover.
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His name was Carl Forrest. He was out of
the Baltimore office.
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00:09:49,670 --> 00:09:55,350
And he creates this identity as a sort
of fictional cartel
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middleman. whose identity on Silk Road
was called Knob.
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00:10:00,700 --> 00:10:04,060
As Knob, Special Agent Force makes an
offer.
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Mr. Silk Road, I am a great admirer of
your work.
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Brilliant, utterly brilliant.
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I will keep this short and to the point.
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I want to buy the site.
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JPR rejects Knob's offer, but the two
begin to communicate almost daily.
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And Knob's next offer, DPR accepts.
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00:10:27,720 --> 00:10:32,340
Knob tells DPR that he wants to unload a
large quantity of cocaine.
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00:10:33,860 --> 00:10:38,040
DPR arranges a sale that will be shipped
through one of Silk Road's
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00:10:38,040 --> 00:10:44,160
administrators, Curtis Clark Green, who
goes by the username Flush.
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When the drugs are delivered, Special
Agent Force will be ready to pounce.
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When the drugs were delivered, there the
Baltimore task force was waiting to go
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in with a SWAT team, and they arrested
Curtis Clark Green, and Curtis Clark
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Green immediately indicated that he
wanted to cooperate with law
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00:11:05,600 --> 00:11:10,740
Katherine Hahn is an assistant U .S.
attorney in San Francisco and lectures
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the Stanford University School of Law on
cybercrime and cybercurrencies.
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And she says things are about to get
worse for Green.
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A week after his arrest, he has a proper
session with Special Agent Carl Force
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and other members of the Baltimore Task
Force.
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00:11:29,020 --> 00:11:35,220
That night, 20 ,000 bitcoins suddenly go
missing from accounts on Silk Road.
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DPR solicits the help of a Silk Road
lieutenant to find out how.
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Quickly, the two of them concluded it
was Curtis Clark Green because it was
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Curtis Clark Green's username,
credentials, and password that had been
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target each one of these vendors.
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00:11:53,810 --> 00:11:59,370
So Green is now not only a potential
snitch, he's a potential snitch who
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00:11:59,370 --> 00:12:02,630
to have stolen $350 ,000 worth of
Bitcoin.
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00:12:03,770 --> 00:12:08,510
DPR wants an associate to make Green pay
the ultimate price.
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00:12:09,710 --> 00:12:14,950
He asked them to locate him, beat him
up, try to get the money back.
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00:12:16,270 --> 00:12:19,790
But that eventually turned into, I want
you to find him and assassinate him.
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00:12:20,670 --> 00:12:23,450
But in a twist that may save Green's
life,
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DPR is asking the wrong guy to carry out
the hit.
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Ironically, very ironically, I would
say, he reached out to Knob, who, of
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course, was Karl Mark Forth.
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In reality, an undercover DEA agent.
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With Green and Carl Force's custody, the
DEA agent sees an opportunity and
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decides to play along.
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Apparently at Curtis Clark Green's home,
they staged the hit.
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Special Agent Force, acting as Knob,
sends gruesome pictures to DPR.
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00:13:00,460 --> 00:13:06,240
Apparently satisfied, DPR pays Knob $80
,000 for the murder.
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00:13:06,960 --> 00:13:08,540
It's a turning point for DPR.
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00:13:08,800 --> 00:13:13,680
The peaceful revolution of a utopian
marketplace appears to be over.
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00:13:14,400 --> 00:13:17,080
He was getting hit by hackers.
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00:13:17,480 --> 00:13:21,120
The site was getting taken down by
hackers. He was being extorted for
185
00:13:21,440 --> 00:13:26,860
People were threatening to identify him,
to identify his users.
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00:13:27,500 --> 00:13:33,080
And he was constantly fighting off both
them and the threat of every law
187
00:13:33,080 --> 00:13:34,960
enforcement agency in the world.
188
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was also hunting him and ready to put
him in prison.
189
00:13:39,860 --> 00:13:46,180
According to the government, DPR orders
as many as five other murders, though it
190
00:13:46,180 --> 00:13:48,240
appears none of them ever actually
occur.
191
00:13:49,580 --> 00:13:53,380
Despite their descent into violence, DPR
seems to be out of reach of law
192
00:13:53,380 --> 00:13:54,380
enforcement.
193
00:13:55,040 --> 00:13:59,540
They know he runs an online drug
marketplace, and they know he's
194
00:13:59,540 --> 00:14:01,660
ordered the murder of one of his
employees.
195
00:14:03,370 --> 00:14:07,570
What they don't know is who in the world
this person actually is.
196
00:14:09,410 --> 00:14:14,710
In the spring of 2013, New York's
cybercrime unit gets involved.
197
00:14:16,230 --> 00:14:21,590
Instead of tracking the drugs like
traditional narcotics investigations,
198
00:14:21,590 --> 00:14:22,590
track the site.
199
00:14:24,330 --> 00:14:27,370
Even though the website was hiding in
plain sight, it still had to be hosted
200
00:14:27,370 --> 00:14:30,930
a physical server. So that physical
server was located somewhere in the
201
00:14:31,090 --> 00:14:33,210
And someone has to maintain the server.
202
00:14:34,110 --> 00:14:39,470
Find the server the cybercrime unit
believes, and they can find who operates
203
00:14:41,250 --> 00:14:46,710
When American Greed returns, law
enforcement gets a lead on the dreaded
204
00:14:46,710 --> 00:14:47,710
Pirate Roberts.
205
00:14:49,130 --> 00:14:52,170
But could a fun -loving surfer and
pacifist...
206
00:14:52,650 --> 00:14:53,990
really be the guy?
207
00:14:55,370 --> 00:15:01,170
When it was revealed that he was this 29
-year -old, good -looking Texan kid, it
208
00:15:01,170 --> 00:15:02,270
was pretty shocking to me.
209
00:15:11,170 --> 00:15:17,030
In an anonymous online community,
sellers, buyers, and even Silk Road's
210
00:15:17,030 --> 00:15:20,650
mastermind could be anyone, anywhere.
211
00:15:21,740 --> 00:15:27,240
But while most agencies are looking for
a person, the FBI Cybercrime Unit in New
212
00:15:27,240 --> 00:15:29,360
York is looking for a machine.
213
00:15:30,080 --> 00:15:32,880
The idea was if you find the server, you
can hopefully find the person operating
214
00:15:32,880 --> 00:15:36,740
it. Hopefully the person who's operating
it is the same person who owns it,
215
00:15:36,780 --> 00:15:37,780
which would be DPR.
216
00:15:38,760 --> 00:15:43,360
Even though Silk Road operates through
the labyrinth of Tor, there are rumors
217
00:15:43,360 --> 00:15:48,360
that the site's IP address sometimes
leads and is visible to those who know
218
00:15:48,360 --> 00:15:49,360
they're looking for.
219
00:15:49,580 --> 00:15:50,940
And at some point...
220
00:15:51,210 --> 00:15:53,350
The cybercrime unit catches a break.
221
00:15:53,610 --> 00:15:57,710
They located the server in Iceland, were
able to go to Iceland and seize that
222
00:15:57,710 --> 00:16:01,830
server. With all of its communications,
they could see every transaction that
223
00:16:01,830 --> 00:16:05,970
had ever happened, every message that
had ever been sent through the Silk
224
00:16:05,970 --> 00:16:06,969
messaging system.
225
00:16:06,970 --> 00:16:11,470
One of the most crucial puzzle pieces
the cybercrime unit lifts from the
226
00:16:11,470 --> 00:16:16,350
is the name of the computer DPR uses to
access the site.
227
00:16:16,870 --> 00:16:19,190
There is a DRIP department out there.
228
00:16:19,680 --> 00:16:24,820
who uses the username Frosty on a
computer that he named Frosty. All the
229
00:16:24,820 --> 00:16:29,620
communications from the server are still
referenced by anonymous usernames, but
230
00:16:29,620 --> 00:16:35,280
one key piece of information gives the
FBI its best lead yet on a possible
231
00:16:35,280 --> 00:16:42,220
location. One of the servers that we
conducted a search on ended up giving an
232
00:16:42,220 --> 00:16:45,840
IP address that a user connected from
San Francisco area.
233
00:16:47,310 --> 00:16:51,110
The IP address is from a cafe in Glen
Park, San Francisco.
234
00:16:52,250 --> 00:16:58,070
So they know at some point DPR connected
to the Silk Road server as Frosty at
235
00:16:58,070 --> 00:17:00,110
Frosty from this particular cafe.
236
00:17:01,130 --> 00:17:02,510
But that's all they know.
237
00:17:04,310 --> 00:17:09,010
Tom Kiernan is a former computer
scientist with the FBI's Cyber Crime
238
00:17:09,490 --> 00:17:15,050
And he says even a cyber investigation
can use an old -fashioned bulletin
239
00:17:15,760 --> 00:17:18,859
It was the picture of DPR from The
Princess Bride.
240
00:17:19,480 --> 00:17:23,660
That was our top of it. You know, a
little picture on the computer with the
241
00:17:23,660 --> 00:17:28,220
Frosty on it, pointing to DPR. We had
the internet cafe with another hand
242
00:17:28,220 --> 00:17:29,740
line to DPR.
243
00:17:30,040 --> 00:17:34,360
Every lead that came in, we'd take a
little snapshot of it and throw it up.
244
00:17:34,960 --> 00:17:38,320
But of course, there's still one piece
missing from this puzzle.
245
00:17:38,760 --> 00:17:41,080
Who is Dread Pirate Roberts?
246
00:17:42,090 --> 00:17:46,450
In the end, maybe Tor's anonymity leads
to illumination.
247
00:17:46,750 --> 00:17:50,570
After all, even a hidden website needs a
map.
248
00:17:51,310 --> 00:17:56,170
Somewhere on the real web, someone has
to give you that Tor name. The idea was
249
00:17:56,170 --> 00:17:59,970
you're going to find it on the real web,
somebody mentioning it in a post or
250
00:17:59,970 --> 00:18:01,850
another chat site or a blog.
251
00:18:02,810 --> 00:18:03,810
Sure enough.
252
00:18:04,250 --> 00:18:08,770
An IRS agent runs a simple Google search
and finds someone advertising a new
253
00:18:08,770 --> 00:18:11,650
dark web drug marketplace in 2011.
254
00:18:13,010 --> 00:18:17,850
He had posted to try to drum up business
for the site, to create buzz.
255
00:18:18,090 --> 00:18:20,670
Oh, look at this interesting site where
drugs are for sale.
256
00:18:21,190 --> 00:18:24,170
The post is under the username Altoid.
257
00:18:25,010 --> 00:18:30,150
Searching other posts by Altoid, the
agent finds that Altoid once went by the
258
00:18:30,150 --> 00:18:31,630
name Frosty.
259
00:18:32,400 --> 00:18:35,040
It appears Altoid and Frosty are the
same person.
260
00:18:35,440 --> 00:18:41,320
And if this is the same Frosty accessing
Silk Road, that person is Dread Pirate
261
00:18:41,320 --> 00:18:42,320
Roberts.
262
00:18:42,740 --> 00:18:46,480
Continuing to search, the agent finds a
possible real -world lead.
263
00:18:47,560 --> 00:18:53,460
In a post by Altoid looking for
programming advice, he asks that any
264
00:18:53,460 --> 00:18:59,280
be sent to the email address rossulbrick
at gmail dot com.
265
00:19:00,520 --> 00:19:05,440
That was a key piece that allowed us to
make that connection or jump from a
266
00:19:05,440 --> 00:19:07,500
virtual computer world to a physical
world.
267
00:19:08,380 --> 00:19:13,520
Initial looks at Ross Ulbricht himself,
however, make it hard to believe he
268
00:19:13,520 --> 00:19:16,480
could be the guy behind a murderous drug
empire.
269
00:19:17,860 --> 00:19:24,600
Ross grew up in Texas and was always a
smart kid, super personable, was a
270
00:19:24,600 --> 00:19:27,420
and was pretty built and was sexy and
stuff.
271
00:19:27,760 --> 00:19:30,060
So he was like a well -liked guy.
272
00:19:30,680 --> 00:19:35,940
It may not seem like the typical profile
of a drug kingpin, but the CEO of an
273
00:19:35,940 --> 00:19:36,940
Internet startup?
274
00:19:37,120 --> 00:19:42,820
Maybe. In a way, he is, in fact, just
like all of the other young
275
00:19:42,820 --> 00:19:44,300
millennial...
276
00:19:46,159 --> 00:19:53,060
very sort of educated millennials,
especially from kind of the sciences,
277
00:19:53,060 --> 00:19:57,420
are kind of using their abilities and
smarts to go try to make a billion
278
00:19:57,420 --> 00:19:58,420
in Silicon Valley.
279
00:19:58,440 --> 00:20:03,940
I did line up from the beginning that he
fit the criteria. His LinkedIn page had
280
00:20:03,940 --> 00:20:09,780
the same kind of lofty libertarian
rhetoric that he was saying to me and
281
00:20:09,780 --> 00:20:10,780
on the Silk Road forums.
282
00:20:11,340 --> 00:20:12,980
The things that we found on the real
net.
283
00:20:13,930 --> 00:20:16,850
and then some of the stuff that we found
on the database to the server. Just
284
00:20:16,850 --> 00:20:20,750
enough to say, yeah, this looks pretty
good. This is the same thought process.
285
00:20:20,830 --> 00:20:25,550
He has the same ideology about things,
that this could be the right guy.
286
00:20:25,910 --> 00:20:26,910
The best news?
287
00:20:27,770 --> 00:20:31,930
Ross Ulbricht's last known address is in
San Francisco, California.
288
00:20:32,430 --> 00:20:36,670
Once they had a name and a location, it
was, let's get our plans together.
289
00:20:36,930 --> 00:20:38,450
We're flying out to San Fran.
290
00:20:39,130 --> 00:20:43,270
sit on the house and see if we can get
enough to actually make this arrest.
291
00:20:44,350 --> 00:20:48,690
When American Greed returns, it appears
to be an open and shut case.
292
00:20:49,310 --> 00:20:54,390
But if Ulbricht is able to shut his
laptop, law enforcement's case could be
293
00:20:54,390 --> 00:20:56,110
locked in a virtual nightmare.
294
00:20:56,790 --> 00:21:01,730
As simple as hitting a key that would
encrypt the entire hard drive and make
295
00:21:01,730 --> 00:21:05,870
very, very difficult, if not impossible,
for law enforcement to ever recover
296
00:21:05,870 --> 00:21:06,870
evidence.
297
00:21:16,400 --> 00:21:22,460
The FBI has a strong case linking Ross
Ulbricht to Dread Pirate Roberts, but
298
00:21:22,460 --> 00:21:24,440
ultimately it's circumstantial.
299
00:21:24,680 --> 00:21:29,820
To prove the case beyond a reasonable
doubt, they need to catch Ulbricht red
300
00:21:29,820 --> 00:21:30,820
-handed.
301
00:21:31,080 --> 00:21:35,380
We want to see him logged in as DPR, not
Frosty or any of these other names. He
302
00:21:35,380 --> 00:21:37,780
wanted him as DPR, as Dread Pirate
Roberts.
303
00:21:38,620 --> 00:21:43,880
And we wanted to see that screen with
his hand, you know, right on that
304
00:21:43,880 --> 00:21:45,960
to say, hey, this is him, this is the
guy.
305
00:21:46,440 --> 00:21:50,020
Fortunately, they have a way of knowing
when Ulbricht is logged in.
306
00:21:50,280 --> 00:21:54,540
A high -level administrator on Silk Road
with the username Siris has been
307
00:21:54,540 --> 00:21:55,960
arrested by Homeland Security.
308
00:21:56,500 --> 00:22:00,340
And Special Agent Jared Duryagian has
taken over Siris' account.
309
00:22:01,020 --> 00:22:05,840
Acting as Siris, he chats online with
DPR almost daily.
310
00:22:06,540 --> 00:22:10,220
We wanted Special Agent Jerry Yegan to
get into a conversation with DPR like he
311
00:22:10,220 --> 00:22:15,600
had in the past hundreds of times and
make him actually log into the Silk Road
312
00:22:15,600 --> 00:22:21,900
site so we could see him at the keyboard
with the screen there. I mean, it's
313
00:22:21,900 --> 00:22:25,040
crazy thinking at the time, but we
wanted the screen there and the chat.
314
00:22:25,040 --> 00:22:28,260
that was the goal from the moment that
we got off the plane.
315
00:22:28,560 --> 00:22:33,860
When the FBI sees DPR logged in with
Yegan, they could simply bust down
316
00:22:33,860 --> 00:22:35,680
Ulbrich's door and take the laptop.
317
00:22:36,620 --> 00:22:39,580
But in cyber cases, it's not that
simple.
318
00:22:40,020 --> 00:22:43,140
As soon as the bureau comes in the
morning, we're pretty loud when we come
319
00:22:43,140 --> 00:22:44,140
the place.
320
00:22:44,220 --> 00:22:48,400
You know something's happening, and the
laptop's closed. We believe that the
321
00:22:48,400 --> 00:22:49,440
laptop's going to be encrypted.
322
00:22:49,960 --> 00:22:53,380
It's going to be a brick, and not going
to be able to get any information off
323
00:22:53,380 --> 00:22:54,380
it.
324
00:22:54,500 --> 00:23:00,600
But from the Silk Road server, they know
that DPR often logs in using Wi -Fi
325
00:23:00,600 --> 00:23:02,180
from a cafe in Glen Park.
326
00:23:02,780 --> 00:23:04,920
If they can make the arrest in public...
327
00:23:05,370 --> 00:23:08,030
They may be able to get the laptop
before it can be encrypted.
328
00:23:08,990 --> 00:23:12,890
On October 1, 2013, they get their
chance.
329
00:23:13,370 --> 00:23:15,030
We gathered by the cafe.
330
00:23:15,310 --> 00:23:20,390
We finally get a call that Ross is
leaving his residence, and he's got his
331
00:23:20,390 --> 00:23:24,430
backpack on. He pokes his head in one of
the cafes, and then there's no place to
332
00:23:24,430 --> 00:23:28,250
sit down or anything, and then continues
on right next door to the library.
333
00:23:29,090 --> 00:23:33,270
Ulbricht sits down at a table in the
science fiction section and opens his
334
00:23:33,270 --> 00:23:34,270
laptop.
335
00:23:34,780 --> 00:23:41,140
Agent Juergen logs in, he starts a chat
with DPR, and he gets him to open up his
336
00:23:41,140 --> 00:23:46,480
browser to the actual site, and that's
when, you know, everything just went in
337
00:23:46,480 --> 00:23:48,280
little bit of slow motion there for a
couple of seconds.
338
00:23:48,920 --> 00:23:54,060
Two undercover agents walk behind
Ulbricht and fake a domestic dispute.
339
00:23:54,660 --> 00:23:58,580
They start yelling at each other,
cursing at each other, and Ross is like,
340
00:23:58,580 --> 00:24:01,480
know, just looking, turns around real
quick to see what's going on.
341
00:24:01,800 --> 00:24:05,160
And that's when I have a special agent
on the other side of him on the same
342
00:24:05,160 --> 00:24:06,720
table that grabbed the laptop.
343
00:24:07,580 --> 00:24:12,200
That's when I came out from my little
position and walked around and grabbed
344
00:24:12,200 --> 00:24:13,200
laptop from her.
345
00:24:13,260 --> 00:24:17,700
But I'm watching on the corner of my
eyes as one of the New York agents that
346
00:24:17,700 --> 00:24:23,260
were down there with actually put hands
on. And Ross, he didn't fight. I think
347
00:24:23,260 --> 00:24:25,280
he knew what was going on after that.
348
00:24:26,100 --> 00:24:30,600
The first thing Kiernan sees on the
laptop, the name Frosty.
349
00:24:31,150 --> 00:24:35,090
This appears to be the laptop that's
been running Silk Road for more than two
350
00:24:35,090 --> 00:24:41,150
years. In a computer crime case, you're
99 .99 % sure. But once you have that
351
00:24:41,150 --> 00:24:47,910
last piece there, this is him. There's
no way it's anybody else.
352
00:24:47,970 --> 00:24:50,670
This is the guy that they've been after
for two years.
353
00:24:51,210 --> 00:24:55,370
Perhaps most importantly, they have the
laptop and all the information it
354
00:24:55,370 --> 00:25:00,450
contains, including chats and a diary
that Ulbricht allegedly kept, detailing
355
00:25:00,450 --> 00:25:04,090
every step of creating and maintaining
Silk Road.
356
00:25:04,390 --> 00:25:07,510
That laptop that Ross Ulbricht had was a
treasure trove of information.
357
00:25:08,490 --> 00:25:11,150
I don't know if you've ever seen the
television show The Wire, but there's a
358
00:25:11,150 --> 00:25:13,170
famous quote from that, never keep notes
on a conspiracy.
359
00:25:13,630 --> 00:25:18,510
And Russell Albrecht kept notes on
everything, including ordering the
360
00:25:18,510 --> 00:25:22,450
of six different people. I mean, there
are organized crime figures who don't go
361
00:25:22,450 --> 00:25:23,289
that far.
362
00:25:23,290 --> 00:25:28,170
There was certainly an element of pride
in keeping this journal and logbook. I
363
00:25:28,170 --> 00:25:31,810
mean, he wrote in one entry that he
thought that his story would be told
364
00:25:31,810 --> 00:25:36,290
someday, and he wanted it to be
comprehensive to include his thoughts.
365
00:25:36,810 --> 00:25:38,010
throughout the whole narrative.
366
00:25:38,590 --> 00:25:43,330
But that's generally not a good idea, to
keep this detailed log of everything
367
00:25:43,330 --> 00:25:45,810
you're doing when you're running this
massive illegal conspiracy.
368
00:25:47,690 --> 00:25:52,750
But the conspiracy contained within
Ulbricht's laptop isn't limited to just
369
00:25:52,910 --> 00:25:55,610
much to law enforcement's surprise.
370
00:25:56,890 --> 00:25:59,950
I was in the middle of an investigation
of another case.
371
00:26:00,680 --> 00:26:06,140
And I had a lawyer representing a third
-party witness in. And at the conclusion
372
00:26:06,140 --> 00:26:12,100
of our meeting, he pulled me aside and
said that he thought that we had a rogue
373
00:26:12,100 --> 00:26:14,720
agent, I believe were the words he used,
on our payroll.
374
00:26:15,660 --> 00:26:21,160
The lawyer represents a Bitcoin currency
exchange in Europe. And he tells Hahn
375
00:26:21,160 --> 00:26:24,100
that this agent has some wires crossed.
376
00:26:24,670 --> 00:26:28,310
I've been a federal prosecutor for over
a decade, and I consider the federal
377
00:26:28,310 --> 00:26:30,910
agents I work with heroes, quite
literally.
378
00:26:31,410 --> 00:26:35,850
But I felt like we could do a really
quick check, and it would be easily put
379
00:26:35,850 --> 00:26:40,050
bed, mostly really for the agent. I was
thinking, I don't want to have this
380
00:26:40,050 --> 00:26:45,010
guy's name being smeared around, so
let's put this to bed so that we can
381
00:26:45,010 --> 00:26:46,590
this attorney you've got it wrong.
382
00:26:46,970 --> 00:26:52,490
But the attorney doesn't have it wrong.
The agent in question, DEA Special Agent
383
00:26:52,490 --> 00:26:53,970
Carl Mark Forth.
384
00:26:54,170 --> 00:26:55,750
a .k .a. Knob.
385
00:26:55,950 --> 00:27:00,870
And Force has been using his undercover
identity to his own advantage.
386
00:27:01,630 --> 00:27:06,570
In one gambit, Knob claims to have an
insider in the Department of Justice who
387
00:27:06,570 --> 00:27:10,010
is willing to sell information on the
Silk Road investigation.
388
00:27:10,770 --> 00:27:16,810
According to Force's official reports,
DPR never accepts the offer, and payment
389
00:27:16,810 --> 00:27:17,709
is never made.
390
00:27:17,710 --> 00:27:21,210
But DPR's chats tell a different story.
391
00:27:22,270 --> 00:27:26,990
One of the messages that DPR sent to
Carl said, hey, I sent you the money you
392
00:27:26,990 --> 00:27:28,510
asked for, the 525 coins.
393
00:27:29,010 --> 00:27:33,430
What I ended up doing, as IRS agents do,
is I started following the money.
394
00:27:33,850 --> 00:27:37,890
Back then, criminals were operating
under the impression that Bitcoin was an
395
00:27:37,890 --> 00:27:41,550
untraceable currency and law enforcement
would never be able to figure this out.
396
00:27:41,710 --> 00:27:46,390
Well, when you fast forward to 2014,
2015, I was no longer the kid.
397
00:27:46,970 --> 00:27:51,750
Typically, even with the new technology,
law enforcement still wouldn't be able
398
00:27:51,750 --> 00:27:54,830
to discover the person behind a Bitcoin
wallet or key.
399
00:27:55,150 --> 00:27:59,430
But it can trace transactions from one
Bitcoin wallet to the next.
400
00:27:59,650 --> 00:28:03,470
And thanks to the whistleblowing
attorney, Gambarian knows that the final
401
00:28:03,470 --> 00:28:05,730
account is controlled by Carl Force.
402
00:28:06,170 --> 00:28:12,530
We could see these four transactions
come out of Russell Briggs' account, DPR
403
00:28:12,530 --> 00:28:13,570
account on Silk Road.
404
00:28:13,830 --> 00:28:14,970
And then...
405
00:28:15,280 --> 00:28:20,440
Old movement you see right here, that's
actually Carl laundering those Bitcoins.
406
00:28:20,640 --> 00:28:24,820
But at the end of the day, it still gets
deposited into pretty much one unique
407
00:28:24,820 --> 00:28:26,920
deposit into his account for 525
Bitcoin.
408
00:28:27,300 --> 00:28:31,880
At the time, 525 Bitcoin is worth about
$50 ,000.
409
00:28:32,920 --> 00:28:37,580
But little does law enforcement know,
they're only scratching the surface.
410
00:28:39,790 --> 00:28:44,490
When American Greed returns, agent Karl
Mark Force gets creative.
411
00:28:44,730 --> 00:28:46,410
And he's not the only one.
412
00:28:46,890 --> 00:28:50,430
In the end, the greediest people in this
story, I don't think, are the Dread
413
00:28:50,430 --> 00:28:53,810
Pirate Roberts or the administrators of
Silk Road, but the law enforcement
414
00:28:53,810 --> 00:28:55,930
agents who saw the Silk Road as an ATM.
415
00:29:02,960 --> 00:29:08,180
Assistant U .S. Attorney Catherine Hahn
and IRS Special Agent Tigran Gambarian
416
00:29:08,180 --> 00:29:14,140
know that DEA agent Karl Mark Force has
squeezed DPR for money once.
417
00:29:14,500 --> 00:29:16,160
Maybe he's done it before.
418
00:29:16,820 --> 00:29:22,600
Looking through Silk Road's chat logs,
Gambarian finds a remarkable clue. A
419
00:29:22,600 --> 00:29:28,260
mistake made under the username
FrenchMaid, offering information to DPR
420
00:29:28,260 --> 00:29:32,960
price. I went back on Silk Road and read
through the chat logs and saw that
421
00:29:32,960 --> 00:29:36,960
French made contact to DPR and tried to
provide him some information.
422
00:29:38,180 --> 00:29:40,300
And sure enough, the first message is
signed Carl.
423
00:29:41,940 --> 00:29:46,280
As much as you try to be careful, even
when you're trying to commit crime,
424
00:29:46,460 --> 00:29:47,460
sometimes you slip.
425
00:29:47,900 --> 00:29:50,720
I would like to think I would never have
done that if I was in that situation,
426
00:29:50,900 --> 00:29:51,900
but you never know.
427
00:29:52,600 --> 00:29:55,960
Tracking the Bitcoin, they end up in a
familiar place.
428
00:29:57,390 --> 00:30:02,310
Indeed, we saw from the Silk Road
servers there was an approximately $100
429
00:30:02,310 --> 00:30:08,290
payment from Silk Road servers to
accounts we associated with Karl
430
00:30:08,550 --> 00:30:11,410
And it was like, boom, that's the cherry
on top.
431
00:30:11,990 --> 00:30:14,350
Really, what more do you need at that
point?
432
00:30:15,170 --> 00:30:20,710
Eventually, Hahn and Gamberian linked
force to multiple extortion efforts on
433
00:30:20,710 --> 00:30:22,090
and other thefts.
434
00:30:22,380 --> 00:30:27,960
and track more than $700 ,000 from Silk
Road paid into Force's accounts.
435
00:30:30,600 --> 00:30:32,920
Then a new thought occurs to them.
436
00:30:33,460 --> 00:30:37,620
Force is part of the team that arrests
Silk Road administrator Curtis Clark
437
00:30:37,620 --> 00:30:44,300
Green in January of 2013, who was almost
immediately accused of stealing 20
438
00:30:44,300 --> 00:30:49,720
,000 Bitcoin from Silk Road vendors.
Could Force have been involved in that
439
00:30:49,720 --> 00:30:54,780
well? Curtis Clark Green had throughout
the entire time maintained his
440
00:30:54,780 --> 00:30:59,980
innocence. He had insisted that he did
not steal those Bitcoins. Now, I've been
441
00:30:59,980 --> 00:31:03,940
in a number of proffers where criminal
defendants lie, so it was not
442
00:31:03,940 --> 00:31:07,340
inconceivable, I'm sure, that Curtis
Clark Green was simply not telling the
443
00:31:07,340 --> 00:31:09,200
truth, and he really had taken those
Bitcoins.
444
00:31:09,440 --> 00:31:12,340
But Hahn and Gamberian have their
doubts.
445
00:31:13,260 --> 00:31:19,500
The proper session lasted two days in
Utah, and so day one was on January
446
00:31:19,500 --> 00:31:21,040
and this was back in 2013.
447
00:31:21,540 --> 00:31:26,440
The theft occurred that evening, January
25th. It just did not make sense to me
448
00:31:26,440 --> 00:31:30,560
that as much law enforcement attention
as was on Green at the time, that Green
449
00:31:30,560 --> 00:31:33,680
was the one who stole that money. If
it's not Green and his account was used
450
00:31:33,680 --> 00:31:35,000
the theft, then who?
451
00:31:35,380 --> 00:31:40,440
The inclination is to believe that Carl
Force is responsible, but the facts
452
00:31:40,440 --> 00:31:42,040
don't seem to bear it out.
453
00:31:42,640 --> 00:31:46,760
A lot of people on our task force just
assumed if there was money missing from
454
00:31:46,760 --> 00:31:51,820
the Silk Road, I'm sure it was Karl Mark
Force who took it because he's done all
455
00:31:51,820 --> 00:31:52,779
of these other things.
456
00:31:52,780 --> 00:31:57,940
But I have to say that, in particular,
Special Agent Tigran Gambarian really
457
00:31:57,940 --> 00:32:03,720
came to me and said, this is a different
pattern that we're seeing here because
458
00:32:03,720 --> 00:32:06,920
it doesn't match the pattern that we
know Force was using.
459
00:32:07,660 --> 00:32:12,320
Hahn calls an expert on digital currency
at the Secret Service named Sean
460
00:32:12,320 --> 00:32:14,540
Bridges to see what she can learn.
461
00:32:15,420 --> 00:32:18,360
But she doesn't get the response she
expects.
462
00:32:19,400 --> 00:32:25,080
His immediate reaction was, why are you
in San Francisco looking into this
463
00:32:25,080 --> 00:32:27,500
internal matter unique to Baltimore?
464
00:32:27,760 --> 00:32:32,380
It was very much a kind of this is none
of your business type feeling that I was
465
00:32:32,380 --> 00:32:33,380
getting from him.
466
00:32:33,500 --> 00:32:38,380
I would have expected a response such
as, oh, my gosh, these are kind of crazy
467
00:32:38,380 --> 00:32:40,340
things. We could get to the bottom of
this.
468
00:32:40,660 --> 00:32:44,740
I certainly didn't expect a response of,
essentially, this is none of your
469
00:32:44,740 --> 00:32:45,740
business.
470
00:32:45,820 --> 00:32:49,040
Hahn decides to take a closer look at
Bridges.
471
00:32:49,680 --> 00:32:54,080
Well, who is this Secret Service agent?
Oh, that's interesting. He's also in
472
00:32:54,080 --> 00:32:57,820
Baltimore. And I later found out, well,
he's on the same task force.
473
00:32:58,640 --> 00:33:01,920
Not only is Bridges on the same task
force as Carl Force.
474
00:33:02,560 --> 00:33:07,180
He is part of the proper session where
Green explains how to use his account to
475
00:33:07,180 --> 00:33:09,040
reset usernames and passwords.
476
00:33:09,440 --> 00:33:14,060
It's the exact method that was used to
break into vendors' accounts and steal
477
00:33:14,060 --> 00:33:15,560
the 20 ,000 Bitcoin.
478
00:33:16,100 --> 00:33:19,040
Once again, Gambarian tracks the money.
479
00:33:19,900 --> 00:33:23,480
Stolen money goes out, goes to the
Bitcoin account, and then deposited into
480
00:33:23,480 --> 00:33:26,280
account that Sean Bridges controlled
through an LLC.
481
00:33:27,110 --> 00:33:31,610
For IRS agents like Gambarian, it's a
typical money laundering investigation.
482
00:33:32,430 --> 00:33:35,410
I don't know if he read a money
laundering book or something and figured
483
00:33:35,410 --> 00:33:38,610
that I should use LFB on laundering
money, but it wasn't very hard to kind
484
00:33:38,610 --> 00:33:41,830
link him to Sean's actual identity.
485
00:33:42,170 --> 00:33:46,290
You know, he's a great undercover agent,
great cyber agent, but not very good at
486
00:33:46,290 --> 00:33:47,249
money laundering.
487
00:33:47,250 --> 00:33:51,890
On May 4, 2014, Forrest resigns from the
DEA.
488
00:33:52,130 --> 00:33:54,750
And March 18, 2015...
489
00:33:55,100 --> 00:33:57,260
Bridges resigns from the Secret Service.
490
00:33:58,240 --> 00:34:02,360
But breaking the law seems to have its
own kind of addiction.
491
00:34:04,360 --> 00:34:08,739
When American Greed returns, Sean
Bridges knows he's caught.
492
00:34:09,679 --> 00:34:12,360
But that doesn't mean he'll go down
willingly.
493
00:34:13,219 --> 00:34:18,840
Sean Bridges had been attempting several
times not only to change his name, but
494
00:34:18,840 --> 00:34:21,239
also to procure a new social security
number.
495
00:34:22,430 --> 00:34:24,630
was incredibly concerning to us.
496
00:34:34,870 --> 00:34:40,010
In January 2015, the trial of Ross
Ulbricht begins.
497
00:34:40,550 --> 00:34:44,050
He pleads not guilty of being the
mastermind of Silk Road.
498
00:34:44,389 --> 00:34:48,690
But on the first day of trial, his
defense makes a startling admission.
499
00:34:49,170 --> 00:34:53,449
On the very first day, His defense
admitted that he had created the Silk
500
00:34:53,630 --> 00:34:59,050
but that it had been just this kind of
economic experiment that he quickly sold
501
00:34:59,050 --> 00:35:02,030
off to the real Dread Pirate Roberts.
502
00:35:02,410 --> 00:35:06,930
It was a remarkable defense because the
Dread Pirate Roberts had laid the
503
00:35:06,930 --> 00:35:11,330
groundwork for it with his name as the
thing that can be passed off and
504
00:35:11,330 --> 00:35:16,990
inherited. So it did fit together in
this really intriguing way, but it just
505
00:35:16,990 --> 00:35:20,290
still wasn't quite believable because
the evidence was... kind of
506
00:35:20,290 --> 00:35:24,670
incontrovertible. I mean, they had just
got everything on him from the Silk Road
507
00:35:24,670 --> 00:35:29,370
server, from his communications, to the
stuff that he just stored on his laptop,
508
00:35:29,610 --> 00:35:33,910
including a journal and a logbook of his
daily activities running the site.
509
00:35:34,130 --> 00:35:35,130
The jury agrees.
510
00:35:35,510 --> 00:35:39,130
In just a single afternoon, they come
back with a verdict.
511
00:35:39,490 --> 00:35:44,230
The jury did not take long. It was a
matter of hours before they came back
512
00:35:44,230 --> 00:35:50,180
with... completely guilty on every
count. The counts include conspiracy to
513
00:35:50,180 --> 00:35:55,720
distribute narcotics, conspiracy to
commit or aid and abet computer hacking,
514
00:35:55,720 --> 00:35:59,180
perhaps most importantly, continuing a
criminal enterprise.
515
00:35:59,780 --> 00:36:03,800
This kingpin charge, as people call it,
it's usually something that is used
516
00:36:03,800 --> 00:36:07,060
against mafia bosses and drug cartel
leaders.
517
00:36:07,700 --> 00:36:11,000
It was about as harsh as anybody could
have thought.
518
00:36:11,530 --> 00:36:15,990
When it comes time for sentencing, Judge
Catherine B. Forrest has a daunting
519
00:36:15,990 --> 00:36:16,990
challenge.
520
00:36:17,310 --> 00:36:20,810
She had been presented with all these
different Ross Ulbrichts, like the
521
00:36:20,810 --> 00:36:27,510
says he's this wonderful, nice guy, and
the FBI says, well, here he is kind of
522
00:36:27,510 --> 00:36:32,490
becoming a murderer. His own diary is a
different account, right, and different.
523
00:36:33,100 --> 00:36:35,940
And the diary at different stages say
different things about the person. So
524
00:36:35,940 --> 00:36:41,860
everybody offered a different version of
this guy, and she said, I don't really
525
00:36:41,860 --> 00:36:42,819
know which is which.
526
00:36:42,820 --> 00:36:47,360
One thing not charged is the murder -for
-hire plots that the prosecution
527
00:36:47,360 --> 00:36:49,200
alleges DPR executed.
528
00:36:50,540 --> 00:36:54,940
They include it in their narrative, but
are never required to prove it to the
529
00:36:54,940 --> 00:36:55,940
jury.
530
00:36:56,900 --> 00:37:01,480
Nevertheless, Greenberg believes that
the judge unfairly takes the evidence
531
00:37:01,480 --> 00:37:02,480
consideration.
532
00:37:02,700 --> 00:37:03,860
when assessing a judgment.
533
00:37:04,460 --> 00:37:08,020
The prosecution asked for a sentence
that was significantly beyond the
534
00:37:08,020 --> 00:37:09,020
minimums.
535
00:37:09,740 --> 00:37:11,260
They did not ask for a life sentence.
536
00:37:12,000 --> 00:37:17,300
It was the judge who took it upon
herself to put him in prison for life,
537
00:37:17,300 --> 00:37:22,160
in part on trying to set an example. She
was very explicit about the fact that
538
00:37:22,160 --> 00:37:24,080
she didn't want to see people following
his footsteps.
539
00:37:25,480 --> 00:37:30,380
And then based in part on these
accusations of violence that he was
540
00:37:30,380 --> 00:37:31,380
actually charged with.
541
00:37:32,570 --> 00:37:37,830
It seemed to me that it was this kind of
tricky thing where he was charged with
542
00:37:37,830 --> 00:37:40,370
nonviolent crimes and then sentenced for
a violent one.
543
00:37:41,530 --> 00:37:43,950
That's not how the system is supposed to
work.
544
00:37:44,530 --> 00:37:49,930
And I also think it's unfair that
anybody pays the price for some
545
00:37:49,930 --> 00:37:52,590
future criminal copycat.
546
00:37:53,410 --> 00:37:58,350
You're supposed to pay the price for
what you do. And I don't think it was
547
00:37:58,350 --> 00:38:00,410
necessary to put Ross Ulbricht in prison
for life.
548
00:38:00,990 --> 00:38:03,930
Bull Brick has appealed his case and the
results are pending.
549
00:38:04,170 --> 00:38:08,530
But former prosecutor Tom Brown believes
the assessment of the danger of Silk
550
00:38:08,530 --> 00:38:10,190
Road is warranted.
551
00:38:10,730 --> 00:38:16,510
There's a narrative out there that says
that Silk Road was simply, was a benign
552
00:38:16,510 --> 00:38:17,510
force on the internet.
553
00:38:17,690 --> 00:38:20,350
But the evidence of the trial showed
that was conclusively false.
554
00:38:20,650 --> 00:38:22,730
You had children purchasing drugs from
the website.
555
00:38:23,710 --> 00:38:25,810
You had murders that were ordered out.
556
00:38:26,360 --> 00:38:31,520
Of course, it appeared from the evidence
of trial that DPR himself was being
557
00:38:31,520 --> 00:38:34,980
defrauded and the murders never actually
occurred, but he thought they did. And
558
00:38:34,980 --> 00:38:37,840
the evidence of trial showed that he
thought he was ordering people killed.
559
00:38:38,680 --> 00:38:43,620
So I think it's beyond a stretch to say
that Silk Road was simply a benign
560
00:38:43,620 --> 00:38:47,160
website that didn't really cause any
harm.
561
00:38:48,040 --> 00:38:51,920
According to Greenberg, if the judge
thinks the sentence has discouraged
562
00:38:51,920 --> 00:38:54,720
copycats, she is severely mistaken.
563
00:38:55,630 --> 00:38:57,230
AlphaBay is the most recent one.
564
00:38:57,470 --> 00:39:03,530
You can see that it has 80 ,000 drug
listings, which is about
565
00:39:03,530 --> 00:39:07,510
four times more than the Silk Road ever
had.
566
00:39:07,870 --> 00:39:12,350
This whole crypto market world has
deteriorated in many ways, not in terms
567
00:39:12,350 --> 00:39:17,450
how much money is getting passed around
there. It's still probably more than
568
00:39:17,450 --> 00:39:22,970
$100 million a year in revenue, but
simply in terms of the morality of it,
569
00:39:22,970 --> 00:39:23,970
ideals are gone.
570
00:39:24,470 --> 00:39:27,530
Everybody's ripping off everybody else.
There's no sense of a kind of
571
00:39:27,530 --> 00:39:28,530
libertarian revolution.
572
00:39:28,770 --> 00:39:35,730
It's all just kind of replication of the
dirty world of the offline drug
573
00:39:35,730 --> 00:39:36,730
industry.
574
00:39:37,470 --> 00:39:42,870
Agent Karl Mark Forrest and Sean Bridges
are part of this dirty world. They both
575
00:39:42,870 --> 00:39:48,930
plead guilty to taking more than $1 .5
million from Silk Road Combined through
576
00:39:48,930 --> 00:39:50,070
theft and extortion.
577
00:39:51,240 --> 00:39:55,960
Upon his guilty plea, Carl Forrest is
remanded into custody and is ultimately
578
00:39:55,960 --> 00:39:57,820
sentenced to six and a half years.
579
00:39:58,700 --> 00:40:03,580
But at Bridges' plea hearing, he is
allowed to turn himself in at a later
580
00:40:04,200 --> 00:40:07,100
The prosecution adamantly objects.
581
00:40:07,720 --> 00:40:12,000
Sean Bridges had been attempting several
times over the summer.
582
00:40:13,450 --> 00:40:16,950
After he had agreed on a plea agreement
with the government, both to not only to
583
00:40:16,950 --> 00:40:21,010
change his name, but also to procure an
additional, a new social security
584
00:40:21,010 --> 00:40:26,010
number. And that information was
incredibly concerning to us. We alerted
585
00:40:26,010 --> 00:40:28,350
judge to it that day at the change of
plea.
586
00:40:28,550 --> 00:40:32,610
And on that basis, sought his remand
into custody. We considered him
587
00:40:32,610 --> 00:40:35,450
flight risk, but he was not placed into
custody.
588
00:40:36,610 --> 00:40:43,250
Bridges is asked to turn himself in in
late January 2016 to serve a 71 -month
589
00:40:43,250 --> 00:40:48,450
sentence. But a day before his surrender
date, law enforcement raids Bridges'
590
00:40:48,510 --> 00:40:52,990
apartment in Baltimore under suspicion
that he may be trying to flee.
591
00:40:53,510 --> 00:40:58,690
I had a bulletproof vest that I found in
this thing, numerous documents for
592
00:40:58,690 --> 00:41:02,010
offshore facility, Apple laptop with the
serial number scratched off.
593
00:41:02,650 --> 00:41:06,550
Kind of a go -back which had all the
stuff in there and prepaid debit cards
594
00:41:06,550 --> 00:41:10,470
whatnot for him ready to go and, you
know, potentially flee the country.
595
00:41:11,070 --> 00:41:15,370
After Bridges' arrest, he won't breathe
free air for a long time.
596
00:41:16,090 --> 00:41:20,510
In fact, he may be facing more than his
original 71 -month sentence.
597
00:41:21,410 --> 00:41:25,730
As the public filing has stated, Sean
Bridges is being investigated for
598
00:41:25,730 --> 00:41:26,730
additional crimes.
599
00:41:27,920 --> 00:41:32,440
Perhaps the Silk Road began as a utopian
libertarian dream.
600
00:41:33,120 --> 00:41:38,460
But in a criminal enterprise, greed
always rears its ugly head.
601
00:41:38,900 --> 00:41:44,480
The Silk Road case in the end, it showed
some incredibly effective law
602
00:41:44,480 --> 00:41:49,220
enforcement investigation techniques at
the same time as it showed just like a
603
00:41:49,220 --> 00:41:55,300
bizarre, comical, corrupt side of the
federal government and its agents.
604
00:41:56,170 --> 00:42:00,490
These guys who just clearly had no
principles about what they were doing
605
00:42:00,490 --> 00:42:02,610
also just weren't very good at getting
away with crime.
606
00:42:03,130 --> 00:42:06,730
The Dread Pirate Roberts, at least, was
a criminal with some principles.
607
00:42:07,750 --> 00:42:12,950
The DEA agents and the Secret Service
guys who were ripping off the Silk Roads
608
00:42:12,950 --> 00:42:14,390
were just in it for the money.
609
00:42:19,790 --> 00:42:23,510
Some of the best inventions never made.
Get a second chance.
610
00:42:23,770 --> 00:42:28,170
Holy cow. This is your choice now. The
defining moment of our life.
611
00:42:28,430 --> 00:42:31,930
Make Me a Millionaire Inventor, season
premiere next Thursday at 10.
612
00:42:32,410 --> 00:42:33,850
CNBC, get yours.
613
00:42:34,310 --> 00:42:38,750
From executive producer LeBron James,
Stephen Hustle, premiere episodes
614
00:42:38,750 --> 00:42:39,750
Wednesday.
56803
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