logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Virtual Currency Plummets Following Fed Seizure of Black Market Website

  +Follow October 2, 2013 11:58AM
Share:
Tickers Mentioned:

The digital currency Bitcoin, which just yesterday came under intense scrutiny of banking regulators in New York, tanked in value following a massive government crackdown on an illegal marketplace that exclusively utilized the digital cryptocurrency.

The Silk Road, an online market where users could buy drugs, guns, and falsified identification documents using the anonymous Bitcoins, was shut down by the FBI and ICE on Oct 1, and its operator was arrested on federal narcotics charges.  

Ross William Ulbricht, known by his nom de plume “Dread Pirate Roberts,” had been running the illegal site since 2011, and had long avoided authorities by staying cloaked in the “Deep Web,” or anonymous underbelly of the internet, via safeguards and secret servers. While arresting Ulbricht and shutting down Silk Road, the government also seized 26,000 bitcoins from Ulbricht’s virtual wallet. This amounts to .002 percent of the total amount of bitcoins in circulation.

The total bitcoin market is worth approximately $16.4 billion.

Of more pressing issue than Ulbricht's bitcoin stash to the viability of bitcoins as a functioning currency was the amout of trade the Silk Road website provided. Authorities estimate that $1.2 billion in bitcoins traded hands on the site in the last two years.

While the digital currency has its roots in the internet black market, some on the fringes of Wall Street have begun to take it seriously, and made attempts to legitimize it. The Winklevoss twins of Facebook Inc. (FB) fame have referred to Bitcoins as “the internet of money,” and “gold 2.0” and have filed with the SEC to start a Bitcoin ETF.

But as the Ulbricht case has shown, the non-fiat currency is still extremely volatile. The currency swung wildly on Wednesday, losing a third of its value as users sold off bitcoins in a panic.

In August the Department of Homeland Security seized $5 million from bitcoin vault Mt. Gox, alleging the site was operating as a money transmitting company illegally without the regulations placed on companies like Western Union (WU)

Despite critics deriding the currency as reflecting a "sub-kindergarten-level monetary understanding" as Forbes contributor Nathan Lewis asserted, Bitcoin remains popular, and continues to entice investors.

Following the panic following Ulbricht’s arrest, the currency stabilized, regaining three-quarters of the value lost in the morning panic.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for FB
Craig March
3 Sep 14 00:12:46
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Daniel Mierzwinski
3 Sep 14 00:10:04
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Rémy Trichard
3 Sep 14 00:08:48
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
theoptiondon
3 Sep 14 00:08:05
9/3: Trade Setups: $FB $FSLR $BIDU $NFLX {MEMBERS} http://t.co/bGVqcGd3Do
Giuseppe De Giorgi
3 Sep 14 00:06:08
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
OTPicks.com
3 Sep 14 00:05:12
http://t.co/hjgLwIcNgz DennyT: BIIB Bussinessweek $BIIB $NFLX $FB $RBY $UUP: DennyT http://t.co/WulEhilkJ6 http://t.co/hjgLwIcNgz
OTPicks.com
3 Sep 14 00:05:10
http://t.co/QkCFZ8H3V8 DennyT: BIIB Bussinessweek $BIIB $NFLX $FB $RBY $UUP: DennyT http://t.co/DX19BOenvJ http://t.co/QkCFZ8H3V8
Anders Planting
3 Sep 14 00:02:05
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
P. Lee
3 Sep 14 00:01:09
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Quantpost Technology
2 Sep 14 23:59:46
$FB News Alert: http://t.co/7NDrQwc6WU Updated options view: https://t.co/ZuQkHYXYuK All options views: https://t.co/gu71urtdg5
Seeking Alpha
2 Sep 14 23:59:44
Using Yahoo As A Unique Way To Capitalize On The Upcoming Alibaba IPO http://t.co/gg8wyfIdkp $V $BABA $FB $GOOG $MA $GOOGL $YHOO
Alexander
2 Sep 14 23:57:48
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
inactive bc study
2 Sep 14 23:57:45
RT @sellyrockit: #FOLLOWTRICK $rt $follow me, @1DCaterpillar @Lukke5SOSx @harryfxcksme @azalea4life $all who rts $fb who follow u $gian t…
Johan Jessen
2 Sep 14 23:56:30
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
James Pember
2 Sep 14 23:55:59
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
inactive bc study
2 Sep 14 23:55:11
RT @sellyrockit: #FOLLOWTRICK $rt $follow me,@harryfxcksme @My5sosArmyy @lazykidrauhl @avonsespinosa $all who rts $fb who follow u $gian …
Henrik Erlingson
2 Sep 14 23:54:11
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Erik Hultgren
2 Sep 14 23:52:16
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Niels PaarupPetersen
2 Sep 14 23:51:45
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
vladimir maliarov
2 Sep 14 23:51:42
Enormous Cash Influx For Yahoo Will Come In September $YHOO $FB $GOOG $GOOGL $BABA http://t.co/bxfKn18l0j
Philipp Kloeckner
2 Sep 14 23:51:40
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Jonas Nordström
2 Sep 14 23:51:20
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Hampus Jakobsson
2 Sep 14 23:49:48
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Bitcoin IT News
2 Sep 14 23:42:31
RT @SeekingAlpha: IBM Vs. Social Media: Real Financial Engineering http://t.co/i11kfakm33 $FB $TWTR $IBM
Prateek Shukla
2 Sep 14 23:41:07
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Alysia Sarkisian
2 Sep 14 23:38:56
RT @SeekingAlpha: IBM Vs. Social Media: Real Financial Engineering http://t.co/i11kfakm33 $FB $TWTR $IBM
Erfan
2 Sep 14 23:38:45
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Quantpost Technology
2 Sep 14 23:38:37
$FB News Alert: http://t.co/EuScoCJD1K Updated options view: https://t.co/LAailo5AAk All options views: https://t.co/gu71urtdg5
John Michael
2 Sep 14 23:38:36
RT @SeekingAlpha: IBM Vs. Social Media: Real Financial Engineering http://t.co/i11kfakm33 $FB $TWTR $IBM
Seeking Alpha
2 Sep 14 23:38:34
IBM Vs. Social Media: Real Financial Engineering http://t.co/i11kfakm33 $FB $TWTR $IBM
Mike Galarza
2 Sep 14 23:36:12
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
cachloman
2 Sep 14 23:34:10
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
BUZZ Just-In
2 Sep 14 23:33:32
Don't ignore transactions costs- they add up- US Tech Giants http://t.co/TPs272NYdZ $MSFT $TWTR $AAPL $FB $GOOG #spreadbetting #cfd
Sidhma
2 Sep 14 23:32:46
"@SidhmaBV : Biggest U.S. tech companies founded by 1st/2nd gen immigrants: $AAPL, $GOOG, $IBM, $ORCL, $FB, $AMZN, $QCOM, $EMC, $EBAY, $VMW"
Imane E.A.
2 Sep 14 23:32:24
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Chris Lefevre
2 Sep 14 23:31:42
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
WallStreetsGemini
2 Sep 14 23:31:22
$YHOO $FB calls. *$INTC watching for open lets see if it can bounce off the 20ema daily, not convinced off the 1m yet
Ronald Mannak
2 Sep 14 23:31:00
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
bramha
2 Sep 14 23:30:55
RT @theoptiondon: 9/3: Trade Setups: $FB $FSLR $BIDU $NFLX {MEMBERS} http://t.co/kvzp6dBLHG
Germain Saval
2 Sep 14 23:29:49
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Sujoy Gupta
2 Sep 14 23:29:14
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Jussi Järvinen
2 Sep 14 23:26:58
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Renzo
2 Sep 14 23:25:40
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Soo Youn
2 Sep 14 23:24:16
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Lassi Kurkijärvi
2 Sep 14 23:23:43
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Idea Katalyst
2 Sep 14 23:22:45
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Fangzhou Ark Xu
2 Sep 14 23:20:21
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
sardar waseem
2 Sep 14 23:19:54
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Market Monitor
2 Sep 14 23:19:40
$FB: Facebook Inc (FB), WhatsApp Deal Questioned By EU Watchdogs http://t.co/TvbYGwAljf http://t.co/z142Y6D7KH
Sterling Wong
2 Sep 14 23:17:50
RT @ValaAfshar: Biggest U.S. tech companies founded by 1st/2nd gen immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
				
				
  +Follow October 2, 2013 11:58AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.