Ex-secret service agent responsible for bringing Ross Ulbricht, Silk Road mastermind, will plead guilty for allegedly routing thousands of bitcoin dollars worth of money to his own accounts, as revealed by federal court documents.
Shaun W. Bridges, cyber crime expert was a part of the team that was responsible for digging up the evidence leading to Ross Ulbricht and led to the eventual shut down of Silk Road in 2013. Silk Road was a black market that was operational online and dealing payments in bitcoin because of its anonymity. Ulbricht was convicted for variety of charges following the bust which included computer hacking, money laundering and trafficking of narcotics amongst several other counts. As of now, he is sentenced to life imprisonment.
Shaun Bridges making some money on the side
According to the complaint officially filed in San Francisco, Bridges apparently had much more than just evidence required for Ulbricht’s conviction.
Bridges used the interrogation information from a Silk Road customer service representation who has admin access to enter the systems of Silk Road. In 2013, after resetting passwords, he transferred up to 20,000 bitcoins from their accounts in his own. Further, he used Japan based exchange service to convert bitcoins into hard cash. After converting the money, he transferred the amount into Shell’s investment accounts.
The Damage Done
Following this incident, bitcoins suffered irreparable damage as to virtual currency’s safety and security from cyber crime and the protectors thereof. The value of bitcoin fluctuates considerably to assess the actual damage that was caused as a result. However, as per the conversion rates applicable on the time, the value of theft was anywhere close to $820,000.
After the documents were filed in court last week, Bridges gave in to the allegations and agreed to plead guilty for money laundering and wire fraud. The sentencing for the case is scheduled to happen on 31st August.
Another investigator on the case, Carl Force from Drug Enforcement Administration was also undercover in the Silk Road case. He too will be facing hearing in August for stealing from Silk Road account. He is also further convicted of blackmailing Ulbricht and was selling him investigation related intel.
Read more about the Bitcoin updated at Bitcoin News.