Who is Ross Ulbricht, founder of drug marketplace Silk Road, now pardoned by Trump?
The creator of a dark web market that sold illegal drugs, stolen passports and hacking equipment using Bitcoin has been pardoned by President Donald Trump.
Ross Ulbricht was sentenced to life in prison, without the possibility of parole, in 2015 in connection with his ownership and operation of the hidden website. The then-26-year-old was also ordered to forfeit $183.9m (£120.2m).
“Make no mistake: Ulbricht was a drug dealer and criminal profiteer who exploited people’s addictions and contributed to the deaths of at least six young people,” said Preet Bharara, US Attorney for the Southern District of New York said at the time of his incarceration.
What was Silk Road?
According to documents presented at his trial, Ulbricht created Silk Road in January 2011 and owned and operated the underground website until it was shut down by the police in October 2013.
Silk Road took its name from a network of historic trading routes that were active in the second century.
It emerged as the most sophisticated and extensive criminal marketplace on the internet, where a variety of illegal drugs were bought and sold.
Silk Road was used by thousands of drug dealers, distributing hundreds of kilograms of illegal drugs to more than 100,000 buyers, totaling more than $200m (£131m). Ulbricht was accused of making more than $13m (£10.53m) in commission.
Ulbricht was accused of using a Bitcoin-based payment system to facilitate illegal activity on the site, and he used a special network to conceal the identities and locations of its users.
Read more: How users accessed Silk Road
The FBI said the site had just under a million registered users, but it’s not clear how many of those were active, or which country they were in.
Silk Road
Murder for hire and six deaths
Prosecutors also claimed Ulbricht was willing to use violence to protect his criminal enterprise.
They said he solicited six murders-for-hire – including one against a former employee – although there was no evidence any of these actually took place and Ulbricht was never tried for them.
The former employee has also voiced support for the campaign to free Ulbricht, and said he did not believe he was dangerous.
Six deaths were connected to drugs sold on the site. Among them, was a 27-year-old Microsoft employee who was found unresponsive in front of his computer, which was logged into Silk Road. He had died of a heroin and prescription drug overdose.
Two sixteen-year-old boys, one from Australia and one from California, both died from taking 25i-NBOMe, a powerful synthetic drug designed to mimic LSD (and commonly referred to as “N-Bomb”) that they had bought on the site.
Read more: Seized Silk Road Bitcoins auctioned by US
Ulbricht during his trial. Pic: AP
Caught by a Gmail account
It was a painstaking process to identify the man behind Silk Road, known online as Dread Pirate Roberts (DPR), a reference to a character in the 1987 film The Princess Bride.
It began with a post made on a web forum where users discussed magic mushrooms. A user nicknamed Altoid started publicising the site, linking off to its dark web location.
Altoid then appeared on another site, discussing virtual currency. In a post asking for an IT expert with a knowledge of Bitcoin, he asked people to contact him via rossulbricht@gmail.com.
This email address was the breakthrough that ultimately linked Ulbricht to Silk Road.
An undercover agent linked this address to a series of social networks, including a YouTube account, which had favourited several clips from the Ludwig von Mises Institute, an Austrian school of economics. DPR would later make several references to the institute on Silk Road discussion forums.
A further lead came in the form of a routine border check of a package from Canada that contained several forged documents, all with Ulbricht’s photo, being delivered to his flat share in San Francisco.
Another slip-up came when Ulbright posted on a question-and-answer site for programmers, asking questions about an intricate code that later become part of the source code for Silk Road. He accidentally identified himself as Ross Ulbricht, before quickly correcting it.
Ross Ulbricht taken from his Google + page
Life in prison
Ulbricht spoke after sentencing expressing remorse for what he had done.
“I’ve essentially ruined my life and broken the hearts of every member of my family and my closest friends,” he said. He walked out of the courtroom carrying with him photographs of those who died as a result of drugs purchased on his website.
Now aged 39, he most recently wrote to President Joe Biden in October 2022, pleading for release.
“Over countless hours, I have searched my soul and examined the misguided decisions I made when I was younger,” he wrote.
“I have dug deep and made a sincere effort to not just change what I do, but who I am. I am no longer the type of man who could break the law and let down so many.”
He said he had worked with prisoners to overcome addictions and come to understand “the damage I caused by helping promote drugs”.
He said he longed to have a future once more and hoped to start a family with his fiance, who “stood by me for all these years”.
A group of supporters had been campaigning for his release. Pic: AP
Freedom
On the second day of his presidency, Mr Trump said he had called Ulbricht’s mother to let her know “it was my pleasure to have just signed a full and unconditional pardon of her son”.
He called those who had convicted Ulbricht “scum”, citing his own convictions: “[They] were some of the same lunatics who were involved in the modern day weaponization of government against me.”
Pic: Truth Social
The ‘Free Ross’ X account posted an image of Ulbricht leaving prison a short while later.
US
Financial markets were always going to respond to Trump tariffs but they’re also battling with another problem
Stock markets around the world fell on Thursday after Donald Trump announced sweeping tariffs – with some economists now fearing a recession.
The US president announced tariffs for almost every country – including 10% rates on imports from the UK – on Wednesday evening, sending financial markets reeling.
While the UK’s FTSE 100 closed down 1.55% and the continent’s STOXX Europe 600 index was down 2.67% as of 5.30pm, it was American traders who were hit the most.
Trump tariffs latest: US stock markets tumble
All three of the US’s major markets opened to sharp losses on Thursday morning.
The S&P 500 is set for its worst day of trading since the COVID-19 pandemic. File pic: AP
By 8.30pm UK time (3.30pm EST), The Dow Jones Industrial Average was down 3.7%, the S&P 500 opened with a drop of 4.4%, and the Nasdaq composite was down 5.6%.
Compared to their values when Donald Trump was inaugurated, the three markets were down around 5.6%, 8.7% and 14.4%, respectively, according to LSEG.
Worst one-day losses since COVID
As Wall Street trading ended at 9pm in the UK, two indexes had suffered their worst one-day losses since the COVID-19 pandemic.
The S&P 500 fell 4.85%, the Nasdaq dropped 6%, and the Dow Jones fell 4%.
It marks Nasdaq’s biggest daily percentage drop since March 2020 at the start of COVID, and the largest drop for the Dow Jones since June 2020.
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The latest numbers on tariffs
‘Trust in President Trump’
White House press secretary Karoline Leavitt told CNN earlier in the day that Mr Trump was “doubling down on his proven economic formula from his first term”.
“To anyone on Wall Street this morning, I would say trust in President Trump,” she told the broadcaster, adding: “This is indeed a national emergency… and it’s about time we have a president who actually does something about it.”
Later, the US president told reporters as he left the White House that “I think it’s going very well,” adding: “The markets are going to boom, the stock is going to boom, the country is going to boom.”
He later said on Air Force One that the UK is “happy” with its tariff – the lowest possible levy of 10% – and added he would be open to negotiations if other countries “offer something phenomenal”.
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How is the world reacting to Trump’s tariffs?
Economist warns of ‘spiral of doom’
The turbulence in the markets from Mr Trump’s tariffs “just left everybody in shock”, Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, told Reuters.
He added that the economy could go into recession as a result, saying that “a lot of the pain, will probably most acutely be felt in the US and that certainly would weigh on broader global growth as well”.
Meanwhile, chief investment officer at St James’s Place Justin Onuekwusi said that international retaliation is likely, even as “it’s clear countries will think about how to retaliate in a politically astute way”.
He warned: “Significant retaliation could lead to a tariff ‘spiral of doom’ that could be the growth shock that drags us into recession.”
Read more:
Do Trump’s ‘Liberation Day’ tariff numbers add up?
Tariffs about something more than economics: power
It comes as the UK government published a long list of US products that could be subject to reciprocal tariffs – including golf clubs and golf balls.
Running to more than 400 pages, the list is part of a four-week-long consultation with British businesses and suggests whiskey, jeans, livestock, and chemical components.
Meanwhile, Prime Minister Sir Keir Starmer said on Thursday that the US president had launched a “new era” for global trade and that the UK will respond with “cool and calm heads”.
It also comes as Canadian Prime Minister Mark Carney announced a 25% tariff on all American-imported vehicles that are not compliant with the US-Mexico-Canada trade deal.
He added: “The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.”
Tanking stock markets, collapsing world orders, devastating trade wars; economists with their hair ablaze are scrambling to keep up.
But as we try to make sense of Donald Trumps’s tariff tsunami, economic theory only goes so far. In the end this surely is about something more primal.
Power.
Understanding that may be crucial to how the world responds.
Yes, economics helps explain the impact. The world’s economy has after all shifted on its axis, the way it’s been run for decades turned on its head.
Instead of driving world trade, America is creating a trade war. We will all feel the impact.
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PM will ‘fight’ for deal with US
Donald Trump says he is settling scores, righting wrongs. America has been raped, looted and pillaged by the world trading system.
But don’t be distracted by the hyperbole – and if you think this is about economics alone, you may be missing the point.
Above all, tariffs give Donald Trump power. They strike fear into allies and enemies, from governments to corporations.
This is a president who runs his presidency like a medieval emperor or mafia don.
It is one reason why since his election we have seen what one statesman called a conga line of sycophants make their way to the White House, from world leaders to titans of industry.
The conga line will grow longer as they now redouble their efforts hoping to special treatment from Trump’s tariffs. Sir Keir Starmer among them.
President Trump’s using similar tactics at home, deploying presidential power to extract concessions and deter dissent in corporate America, academia and the US media. Those who offer favours are spared punishment.
His critics say he seeks a form power for the executive or presidential branch of government that the founding fathers deliberately sought to prevent.
Whether or not that is true, the same playbook of divide and rule through intimidation can now be applied internationally. Thanks to tariffs
Each country will seek exceptions but on Trump’s terms. Those who retaliate may meet escalation.
This is the unforgiving calculus for governments including our own plotting their next moves.
The temptation will be to give Trump whatever he wants to spare their economies, but there is a jeopardy that compounds the longer this goes on.
Read more:
Do Trump’s numbers on tariffs really add up?
Trump hits island home only to penguins with 10% tariffs
Could America’s traditional allies turn to China? Pic: AP
Malcolm Turnbull, the former Australian prime minister who coined the conga line comparison, put it this way: “Pretty much all the international leaders I have seen that have sucked up to Trump have been run over. The reality is if you suck up to bullies, whether it’s global affairs or in the playground, you just get more bullying.”
Trading partners may be able to mitigate the impact of these tariffs through negotiation, but that may only encourage this unorthodox president to demand ever more?
Ultimately the world will need a more reliable superpower than that.
In the hands of such a president, America cannot be counted on.
When it comes to security, stability and prosperity, allies will need to fend for themselves.
And they will need new friends. If Washington can’t be relied on, Beijing beckons.
America First will, more and more, mean America on its own.
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