Who Is Ross Ulbricht?
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Table of Contents

Who Is Ross Ulbricht?

Ross Ulbricht is the imprisoned founder of Silk Road, the darknet marketplace

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Nathan Reiff
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Nathan Reiff has been writing expert articles and news about financial topics such as investing and trading, cryptocurrency, ETFs, and alternative investments on Investopedia since 2016.
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Updated May 23, 2024
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Erika Rasure
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Reviewed by Erika Rasure
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Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest.

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Ross Ulbricht is a former darknet market operator most famous for creating and running the Silk Road market. He was arrested in 2013, and two years later a Manhattan federal jury found him guilty on seven charges including conspiracy to launder money, conspiracy to commit computer hacking, conspiracy to traffic narcotics through the internet, and continuing a criminal enterprise, the kingpin charge. Ulbricht used the pseudonym "Dread Pirate Roberts" and was sentenced to life in federal prison in 2015.

Key Takeaways

  • Ross Ulbricht, the "Dread Pirate Roberts" of the internet, founded and operated the darknet marketplace Silk Road from 2011 until 2013.
  • The site was a marketplace for drugs paid for with cryptocurrency.
  • Ulbricht was indicted on seven charges including conspiracy to launder money, conspiracy to commit computer hacking, conspiracy to traffic narcotics by the means of the internet, and continuing a criminal enterprise.
  • In 2015, Ulbricht was sentenced to life in prison.
Ross Ulbricht

Investopedia / Ellen Lindner

Silk Road

Ulbricht grew up near Austin, Texas, studying physics at the University of Texas at Dallas and then enrolled at Pennsylvania State University to pursue a master's program in materials science.Ulbricht founded Silk Road in 2011, calling himself "Dread Pirate Roberts" online.

He envisioned the site as a "means to abolish the use of coercion and aggression amongst mankind," according to his LinkedIn page. Ulbricht was "creating an economic simulation to give people a first-hand experience of what it would be like to live in a world without the systemic use of force." By adopting encryption and cryptocurrency, the marketplace provided anonymity and security for its participants, using Tor encryption and Bitcoin.

"Silk Road" became popular over a short period. When numerous media outlets picked up stories on the market in mid-2011, interest grew, and traffic increased exponentially. Silk Road remained a shrouded marketplace where legal and highly unlawful activity occurred through 2013. The site was used by over 100,000 users who bought and sold $200 million worth of illegal goods and services.

Ulbricht, a first-time offender, did not sell illegal drugs and other items but created and operated a site where others did.

Found Guilty

The FBI investigated site users, eventually identifying Ulbricht as the founder and owner of Silk Road. Ulbricht was arrested and the FBI seized his laptop on October 1, 2013. The Silk Road website generated over $13 million worth of Bitcoin in commissions. The FBI seized 144,336 bitcoins from a shared digital wallet on Ulbricht's laptop. They were sold in a series of auctions generating proceeds worth $48.2 million.

Ross Ulbricht was convicted on all seven counts in February 2015. The trial was a highly publicized and charged event, with the presiding judge reportedly receiving death threats from presumed Silk Road supporters, although that was never proven.

Before his sentencing, Ulbricht stated, in a letter provided to the judge, that his actions were linked to his libertarian ideals and that "Silk Road was supposed to be about giving people the freedom to make their own choices." On May 29, 2015, Ulbricht was sentenced to two life imprisonment terms plus 40 years to be served concurrently.

On Sept. 23, 2013, the Silk Road home page advertised 13,000 listings for controlled substances, listed under such categories as “Cannabis,” “Dissociatives,” “Ecstasy,” “Intoxicants,” “Opioids,” “Precursors,” “Prescription,” “Psychedelics,” and “Stimulants." 

Appeals

Ulbricht attempted to appeal, and in May 2017, the United States Court of Appeals for the Second Circuit denied his attempt. Also in 2017, Ulbricht appealed to the Supreme Court, with attorneys arguing that his case involves unresolved constitutional questions regarding the Fourth Amendment and the digital age. In June 2018, the court declined to hear Ross’s case.

In late 2020, national media reported that former President Donald Trump was considering commuting Mr. Ulbricht's sentence, but ultimately he did not.Since Ulbricht's incarceration, more than 570,000 have signed an online petition created by Lyn Ulbricht, Ross' mother, to commute his double life sentence.

How Long Is Ross Ulbricht's Prison Sentence?

On May 29, 2015, Ulbricht was sentenced to two life imprisonment terms, plus 40 years, to be served concurrently without the possibility of parole.

Was Ross Ulbricht Involved in Creating Bitcoin?

While darknet sites were early adopters of Bitcoin, Ross Ulbricht did not develop any cryptocurrency.

Does Silk Road Marketplace Still Exist?

The FBI shut down Silk Road shortly after Ross Ulbricht's arrest, seizing 144,336 bitcoins.

The Bottom Line

Ross Ulbricht is infamous for creating and running the Silk Road market and a federal jury found him guilty on seven charges, including conspiracy to traffic narcotics. He was sentenced to spend the rest of his life in prison. 

Article Sources
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  1. Federal Bureau of Investigations. "Ross William Ulbricht's Laptop."

  2. United States Attorney's Office, Southern District of New York. "Ross Ulbricht, A/K/A “Dread Pirate Roberts,” Sentenced In Manhattan Federal Court To Life In Prison."

  3. United Nations Office on Drugs and Crime (UNDC). "Case Law Database: United States of America v. Ross William Ulbricht, No. 15-1815-cr (2d Cir. May 31, 2017)."

  4. LinkedIn. "Ross Ulbricht."

  5. Federal Reserve Bank of Cleveland. "Bitcoin’s Decentralized Decision Structure."

  6. Australian Government. "Defending Against the Malicious Use of the Tor Network."

  7. United States Attorney's Office, Southern District of New York. "Ross Ulbricht, A/K/A “Dread Pirate Roberts,” Sentenced In Manhattan Federal Court To Life In Prison."

  8. Federal Bureau of Investigation. "Ross William Ulbricht's Laptop."

  9. United States Attorney's Office, Southern District of New York. "Acting Manhattan U.S. Attorney Announces Forfeiture Of $48 Million From Sale Of Silk Road Bitcoins."

  10. Supreme Court of the United States. "Ross William Ulbricht vs. United States of America."

  11. Coindesk. "Silk Road's Ulbricht Being Considered for Pardon by Trump: Report."

  12. Change. "Clemency for Ross Ulbricht, Serving Double Life for a Website."

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