“A Man of Many Perversions” – Federal Cybersecurity Head Convicted of Child Porn Charges

The following story is a warning as to why centralized power is so dangerous. It doesn’t matter whether the power is political or corporate, overly centralized power in all forms must be resisted whenever it appears. The worst of all worlds is when centralized political and corporate power unite in an unholy alliance, which is what has happened to America in recent decades. When this occurs, the combined forces of oligarchy simply begin to rapaciously feast on the citizenry with zero accountability. This is a fair description of the United States in 2014.

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Silk Road 2.0 Has Been Born…New Website Mocks the Feds

The “authorities” can shut down website after website, but the tide of new technology and the human spirit itself cannot and will not be overcome. This is the hard lesson that statists and collectivists will be learning the hard way in the years to come, as decentralization and freedom stage a gigantic, peaceful revolution. A revolution that is already in full swing and gaining tremendous momentum with each passing day.

It took only a little over a month for Silk Road 2.0 to launch on the “dark web,” and there are already close to 500 illegal drug listings. As part of the new service there is even a new security feature that allows users to use their PGP encryption key as an extra authentication measure. The login page itself is even a parody of the Department of Justice’s seizure of the original site in early October. This is what you see when you visit:

Screen Shot 2013-11-06 at 2.21.58 PM

More from Forbes:

On Wednesday morning, Silk Road 2.0 came online, promising a new and slightly improved version of the anonymous black market for drugs and other contraband that the Department of Justice shut down just over a month before. Like the old Silk Road, which until its closure served as the Web’s most popular bazaar for anonymous narcotics sales, the new site uses the anonymity tool Tor and the cryptocurrency Bitcoin to protect the identity of its users. As of Wednesday morning, it already sported close to 500 drug listings, ranging from marijuana to ecstasy to cocaine. It’s even being administered by a new manager using the handle the Dread Pirate Roberts, the same pseudonym adopted by the previous owner and manager of the Silk Road, allegedly the 29-year-old Ross Ulbricht arrested by the FBI in San Francisco on October 2nd.

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Welcome to the Silk Road: A Mind-Blowing Interview with Dread Pirate Roberts

An entrepreneur as professionally careful as the Dread Pirate Roberts doesn’t trust instant messaging services. Forget phones or Skype. At one point during our eight-month preinterview courtship, I offer to meet him at an undisclosed location outside the United States. “Meeting in person is out of the question,” he says. “I don’t meet in person even with my closest advisors.” When I ask for his name and nationality, he’s so spooked that he refuses to answer any other questions and we lose contact for a month.

All my communications with Roberts are routed exclusively through the messaging system and forums of the website he owns and manages, the Silk Road… “The highest levels of government are hunting me,” says Roberts. “I can’t take any chances.”

– From Forbes’ recent article on the Silk Road

Most of my readers have probably heard of the Silk Road. No, not the historical trade routes that linked Europe to Asia, but rather the online illegal drug marketplace accessible only via anonymity browsing software Tor, and where the only currency accepted is Bitcoin.

Those of you who have heard about it, probably know far less about the man that runs it. A character who only goes by the name Dread Pirate Roberts. He’s a character who usually stays firmly in the shadows for obvious reasons, but who has come out and done an excellent interview with Andy Greenberg of Forbes. What follows are some of the more interesting exchanges. From Forbes:

An entrepreneur as professionally careful as the Dread Pirate Roberts doesn’t trust instant messaging services. Forget phones or Skype. At one point during our eight-month preinterview courtship, I offer to meet him at an undisclosed location outside the United States. “Meeting in person is out of the question,” he says. “I don’t meet in person even with my closest advisors.” When I ask for his name and nationality, he’s so spooked that he refuses to answer any other questions and we lose contact for a month.

All my communications with Roberts are routed exclusively through the messaging system and forums of the website he owns and manages, the Silk Road. Accessing the site requires running the anonymity software Tor, which encrypts Web traffic and triple-bounces it among thousands of computers around the world. Like a long, blindfolded ride in the back of some guerrilla leader’s van, Tor is designed to prevent me–and anyone else–from tracking the location of Silk Road’s servers or the Dread Pirate Roberts himself. “The highest levels of government are hunting me,” says Roberts. “I can’t take any chances.”

By the measure of Carnegie Mellon researcher Nicolas Christin, Roberts’ eBay-like service was grossing $1.2 million a month in the first half of 2012. Since then the site has doubled its product listings, and revenue now hits an annual run-rate of $30 million to $45 million by FORBES’ estimate.

Roberts also has a political agenda: He sees himself not just as an enabler of street-corner pushers but also as a radical libertarian revolutionary carving out an anarchic digital space beyond the reach of the taxation and regulatory powers of the state–Julian Assange with a hypodermic needle.

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Bruce Schneier: “The Internet is a Surveillance State”

Last week, I wrote an article on “encryption” that highlighted Kim Dotcom’s effort to create an encrypted email service and Bitcoin’s successful foray into the creation of a decentralized crypto-currency.  Some of the feedback I received from several tech savvy people I know is that the spying is so pervasive there’s really no chance at true anonymity at the moment no matter what we do.  A few days later, this article by legendary American cryptographer and computer security specialist, Bruce Schneier came out.  Here’s what he had to say:

Increasingly, what we do on the Internet is being combined with other data about us. Unmasking Broadwell’s identity involved correlating her Internet activity with her hotel stays. Everything we do now involves computers, and computers produce data as a natural by-product. Everything is now being saved and correlated, and many big-data companies make money by building up intimate profiles of our lives from a variety of sources.

This is ubiquitous surveillance: All of us being watched, all the time, and that data being stored forever. This is what a surveillance state looks like, and it’s efficient beyond the wildest dreams of George Orwell.

This isn’t something the free market can fix. We consumers have no choice in the matter. All the major companies that provide us with Internet services are interested in tracking us. Visit a website and it will almost certainly know who you are; there are lots of ways to betracked without cookies. Cellphone companies routinely undo the web’s privacy protection. One experiment at Carnegie Mellon took real-time videos of students on campus and was able to identify one-third of them by comparing their photos with publicly available tagged Facebook photos.

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