logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 

Equities – Your destination to connect with the growth investment community.

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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Signup for our daily newsletter and get our best articles emailed right to you!

Results for FB
LloydCreekStocks
6 May 15 05:24:41
$FB EU Announces Plans for Digital Single Market -- 2nd Update http://t.co/NZIE0x1Vcu
Mother of Sin
6 May 15 05:22:31
RT @OptionsFlux: $FB Jul. 17, 2015 CALL 80.00 : +5.637 contracts add to OI
The Cardiac Kid
6 May 15 05:22:16
$FB - EU Announces Plans for Digital Single Market -- 2nd Update http://t.co/PZotzZxi2X
Pathy Nkondolo
6 May 15 05:22:15
$FB - EU Announces Plans for Digital Single Market -- 2nd Update http://t.co/35ywAJcqua
Solo traders
6 May 15 05:22:14
$FB - EU Announces Plans for Digital Single Market -- 2nd Update http://t.co/T3IDRWtiuS
john smith
6 May 15 05:22:12
$FB - EU Announces Plans for Digital Single Market -- 2nd Update http://t.co/fnwrzjprvV
Live Stock News
6 May 15 05:22:11
$FB - EU Announces Plans for Digital Single Market -- 2nd Update http://t.co/yv1VeFYGad
HOVA
6 May 15 05:22:10
RT @TweakTown: .@Oculus Rift CV1 to be released in Q1 2016 $FB http://t.co/iKP73usSHM http://t.co/ycIxJfix6I
NASDAQ
6 May 15 05:22:05
$FB - EU Announces Plans for Digital Single Market -- 2nd Update http://t.co/VdTezELLHG
homecookme
6 May 15 05:22:02
RT @mytweetmark: Going to sell some $fb today. Bought at $27. Cc #startups #sxsw #money @howardlindzon @StockTwits @LarryChiang http://t.co…
Stock_Huntress
6 May 15 05:21:36
http://t.co/HN5r9Es8zL <- THIS GUY CAN MAKE YOU RICH TRADING PENNYSTOCKS #stocks #pennystocks #trading $TWTR $STUDY $FB
flyingoverasphalt22
6 May 15 05:20:41
RT @ACInvestorBlog: $FB $IBM Facebook and IBM Team Up to Supercharge Personalized Ads http://t.co/lshMfLudvT
Cutlass
6 May 15 05:20:39
RT @OptionsFlux: $FB Jul. 17, 2015 CALL 80.00 : +5.637 contracts add to OI
Dave Neville
6 May 15 05:20:09
Facebook's Oculus Rift virtual reality headset will ship in early 2016 http://t.co/346W03BkQ9 $FB
OptionsFlux
6 May 15 05:19:45
$FB Jul. 17, 2015 CALL 80.00 : +5.637 contracts add to OI
Otmane El Rhazi
6 May 15 05:18:24
$MACRO on http://t.co/SY9X8QKHF0, $FB #Facebook #Stock Shareholders Pressure Facebook Inc (FB) Eliminate Supervoting Stock.
Samer Kamal
6 May 15 05:18:04
Finally. $FB Oculus Rift to ship in early 2016 http://t.co/8Vzue28Phd
SmallCaps
6 May 15 05:15:32
http://t.co/UWhEDnhL6i <- THIS GUY CAN MAKE YOU RICH TRADING PENNYSTOCKS #stocks #pennystocks #trading $TWTR $STUDY $FB
Guru Algo Trading
6 May 15 05:11:31
RT $TSLA Algos triggered BUY in SIGMA-X, CROSSFINDER, ATS, LX @ 08:11. P/T 236.00 $GOOG $TWTR $BIDU $GPRO $NFLX $AAPL $FB $QQQ #HFT #Quant
Stock_Huntress
6 May 15 05:08:32
The Best Investment You can Make Right Now http://t.co/ywkSp858En $STUDY $TWTR $FB $YHOO $LBIX $LIVE $ZPIN
Allen Wastler
6 May 15 05:06:46
Top stock lookups on http://t.co/dw39TK5QXW ysty: $AAPL, $DIS, $BAC, $FB, $BABA, $TSLA, $TWTR, $CRM, $GE, $NFLX, $UWTI, $HLF, $MSFT, $GILD
Ophir Gottlieb
6 May 15 05:04:21
$LNKD vs. $FB vs. $GOOGL Compared Across 9 Critical Measures http://t.co/jFqOZggsRp http://t.co/qUPfRPWCNk
Hotpage News
6 May 15 05:03:46
#IBM And #Facebook Team Up To Make Ads That Know Even More About You - $IBM $FB http://t.co/0KwGh9PXvw
Hotpage
6 May 15 05:03:46
#IBM And #Facebook Team Up To Make Ads That Know Even More About You - $IBM $FB http://t.co/n63jWnqNkn
The Stock Professor
6 May 15 05:03:04
Sandberg's Emotional Tribute To Tragic Husband: http://t.co/nocDEdYxmE $FB $TWTR $LNKD $BAC
Guru Algo Trading
6 May 15 05:02:59
RT $TSLA Algos triggered BUY in SIGMA-X, CROSSFINDER, ATS, LX @ 08:00. P/T 236.00 $GOOG $TWTR $BIDU $GPRO $NFLX $AAPL $FB $QQQ #HFT #Quant
nasdaqfan
6 May 15 05:02:05
VPMAX Vanguard Primecap Short Sales Click Here -> http://t.co/XUnMeg6gmh Trending $VPMAX $GILD $SDRL $FB #VPMAX #tradeideas #stock
PolgarStocks
6 May 15 05:01:22
$UCO Investor Opinions Updated Wednesday, May 6, 2015 07:07:18 AM $GLW $FB $EWH $BBH http://t.co/j7zjlKam3j
PolgarStocks
6 May 15 05:01:19
$EBAY Percent Change Updated Wednesday, May 6, 2015 07:07:18 AM $PBR $PBR $FB $T http://t.co/JKsDHzvSCl
lookn4wins
6 May 15 05:01:13
UPRO ProShares UltraPro S&P 500 Filings Click Here -> http://t.co/l5eEPdKbxD Trending $UPRO $DIA $FB $RAX #UPRO #invest #invest
Cutlass
6 May 15 05:01:07
RT @OptionsHawk: $FB – July $80 Call OI to 11,301 from 5,674 - good buy flow in those y'day as it hit the 200 day MA
Sentiquant
6 May 15 05:00:05
#toptickertweets $AAPL $PTBI $TWTR $TSLA $DAX $GEVA $FB $SPY $GOOG $USD #sentiquant 20150506 08:00:05:345
Sentiquant
6 May 15 05:00:05
#sentishiftdown $WMT $T $H $TWTR $FB $MSFT $SCTY $TLT $LNKD $SNY #sentiquant 20150506 08:00:05:139
Stock Hobbit
6 May 15 04:59:12
Logging in now to live stock chat http://t.co/ndv5bWOOj4 $GOOG $AAPL $FB $EBAY #options #stocks #daytrading http://t.co/ICmKMV71xh
Justin Wittrock
6 May 15 04:58:28
RT @ncallaghan1: Microsoft To Replace http://t.co/mGwrBpkYo7 With Office 365 - $MSFT $GOOG $GOOGL $FB http://t.co/GsoJCSa1yI via @ValueWalk…
James Felton Keith
6 May 15 04:58:23
Facebook $FB and IBM $IBM are entering into a partnership to combine #bigdata #analytics. http://t.co/cLwfVHJCoz
Stock_Tracker
6 May 15 04:56:34
RAX Rackspace Hosting Inc. Current Price Click Here -> http://t.co/txO28RcJEk Trending $RAX $WMIH $FB $GLD #RAX #invest #investing
mobile box
6 May 15 04:56:24
RT @ProTraderMike: $PTBI better than any $FB $TWTR can do -MOJO picks rock trading off the mobile app - come trade with me http://t.co/LSWR…
mobile lovers
6 May 15 04:55:57
RT @ProTraderMike: $PTBI better than any $FB $TWTR can do -MOJO picks rock trading off the mobile app - come trade with me http://t.co/LSWR…
Forex First Aids
6 May 15 04:55:16
RT @ProTraderMike: $PTBI better than any $FB $TWTR can do -MOJO picks rock trading off the mobile app - come trade with me http://t.co/LSWR…
MOJO DAY TRADING
6 May 15 04:55:13
$PTBI better than any $FB $TWTR can do -MOJO picks rock trading off the mobile app - come trade with me http://t.co/LSWRq7PN4w
Guru Algo Trading
6 May 15 04:54:43
RT $TSLA Algos triggered BUY in SIGMA-X, CROSSFINDER, ATS, LX @ 07:51. P/T 236.00 $GOOG $TWTR $BIDU $GPRO $NFLX $AAPL $FB $QQQ #HFT #Quant
PolgarStocks
6 May 15 04:52:12
IEV Europe 350 iShares Bid Click Here -> http://t.co/ySiQ5PwehV Trending $IEV $EXPD $FB $OIL #IEV #stockmarket #stockmarket
StockNewsWires
6 May 15 04:52:04
$GOOG $FB $AMZN: EU to review the behavior of web giants as it launches a digital ...: http://t.co/DCz1txQ7El
leahanne
6 May 15 04:51:06
GOOGL Google Inc. - Class A % Change Click Here -> http://t.co/7tM3vtxvNw Trending $GOOGL $NUGT $FB $DGAZ #GOOGL #stockmarket #invest
TickerLens Facebook
6 May 15 04:49:55
Facebook Inc (NASDAQ:FB) Makes Progress with Its Targeted Marketing Experiences http://t.co/hNK5ZO8Ulg $FB
TickerLens Facebook
6 May 15 04:49:48
Facebook Inc (NASDAQ:FB) Conducts Feasibility Study To Acquire Nokia’s Here Maps http://t.co/qIwvj2K9Jj $FB
Emylers
6 May 15 04:49:07
FB Facebook, Inc. Exchange Click Here -> http://t.co/gDOtdzWlsI Trending $FB $FNMA $UPRO $MU #FB #stockmarket #invest
Rosner Stocks
6 May 15 04:49:06
EXPD Expeditors Intl of Washington, Inc. Short Sales Click Here -> http://t.co/XZM2DjPghT Trending $EXPD $NSAV $RIGH $FB #EXPD…
Cameron Wilmot
6 May 15 04:45:06
.@Oculus Rift CV1 to be released in Q1 2016 $FB http://t.co/vz1IPQZ0gi http://t.co/RVPd8Ekl6b
				
				
  +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.

Login or Register

LOG IN