American Kingpin – Catching the Billion-Dollar Baron of the Dark Web

Ross Ulbricht has recognized that his Liberterian ethos was taking him further and further into the abyss. He was not driven by power, money and respect, but by his political convictions. However, it drove him to the moral high ground and eventually landed him in prison for twice life plus 40 years.

Nick Bilton’s book about the 26-year-old American Ross Ulbricht’s meteoric rise as drug lord “The Dead Pirate Roberts” is more thrilling than any crime novel I’ve read in recent times. At the same time, it describes a number of fundamental issues and challenges in American society and the rapid development of IT technology. Ross Ulbricht was a student at Penn State University where, as a so-called libertarian, he actively advocated that the state (what we now call government) should interfere as little as possible in what the individual can and cannot do. It’s an old discussion where Americans seem a few hundred years behind Europe.

Among other things, Ross was of the opinion that we each have to decide which drugs we want to enjoy. As a consequence, he also believed that all trade in narcotics and drugs should be liberalized and left to the free market. This would be a quick way to get rid of the violent crime that surrounds drug trafficking. Moving the drug trade online at the same time would create a transparent market that would remove all intermediaries between producer and consumer, drive down prices and ensure that the transaction itself could take place without the parties having to physically meet. User reviews would ensure that cheats were spotted and pushed out of the market. Ross saw nothing but advantages and couldn’t see any disadvantages.

The personal consequences of any abuse, including whether some groups of people might be more vulnerable than others, was something he, based on his Liberterian view of life, could completely ignore. Of course, there was the problem that all trade in drugs and narcotics is illegal in the US, but Ross was convinced that if liberalization could be achieved, everyone would see the benefits and lawmakers would be pressured to unleash the market. Ross saw himself as the knight in shining armour who would open society’s eyes to the blessings of liberalization.

The Silk Road on the Dark Web

When Ross Ulbricht discovered that there is a version of the Internet where you can’t track an individual’s activity, he saw an opportunity to realize his vision. He created The Silk Road webshop where sellers and buyers of narcotics and drugs could meet and trade. The goods were delivered by an (initially) unsuspecting postal service and payment was made in anonymous Bitcoins. Ross Ulbricht cashed in a percentage of each trade. The same concept as when Danske Bank helped wash Russian money clean in their Estonian branch. If the traffic is high enough, even small commissions can turn into huge sums.

Driven by his political convictions, Ross got to grips with how The Dark Web technically works, but soon realized that he couldn’t do it all alone. As it always goes when someone has to work together to commit crime, the processes were complicated by a combination of greed and lack of trust. Soon Ross had to deal with the consequences of someone trying to cheat him. On the wrong side of the law, only the law of the jungle applies, and Ross took many small but sure steps in the wrong direction, eventually taking very big steps indeed.

Ross came a long way with his project, was driven by the environment into more and more exotic corners of the black market and had to deal with increasingly difficult facets of his political beliefs. Should the portal also allow trade in highly addictive drugs such as heroin and methamphetamine, weapons and human organs? Ross had only himself to discuss the dilemmas with and always chose the most Liberterian interpretation. It was only the inconvenience of sending weapons and organs by post that limited this part of the business.

Over time, the business grew so large that the police became aware of the activity. The book’s description of how US law enforcement went about finding the mastermind and disabling the portal is a thriller in itself. Even the law doesn’t always work on the side of the law. The pursuit of fame and glory is often prioritized over the actual goal of the case.

The fundamental conditions

The notion that ethics are on your side when you choose to break the law based on political or religious beliefs is neither new nor limited to a narrow group. Even in ancient democracies, where it’s difficult to argue that the law should favor special populations, there are still people who believe that their individual beliefs are ethical enough to override the law. Once the movement is set in motion, many are happy to follow.

Ross Ulbricht has recognized that his Liberterian ethos was taking him further and further into the abyss. He, unlike many other criminals, was not driven by power, money and the respect (which in reality is fear and not respect) that both can buy in those environments, but by his political convictions. In turn, it drove him to the moral high ground and eventually landed him in prison for twice life plus 40 years.

The Dark Web is a technology that protects privacy and can ensure that we cannot be monitored in all our online activities. It wasn’t until Bitcoin technology was introduced that Ross Ulbricht was able to realize his vision of the internet-based drug market. You can’t cheat with Bitcoins, but you can make completely anonymous payments, which is at the heart of almost all crime. The book’s description of what it took to capture and expose Ross Ulbricht is a frightening example of what we are up against.