Drugs, the Internet, Money-Laundering and Shell Companies Tom Bergin
Jan 02, 2016
Drugs, the Internet, Money-Laundering and Shell Companies
Tom Bergin
• Online Drug dealing• Internet Payment Systems• Shell companies
Drug dealing online
• “FBI shuts alleged online drug marketplace, Silk Road”
• “Silk Road: The eBay of Illegal Drugs”• “After Silk Road's demise, online drug dealing
moves to new sites”
Source: Reuters, WSJ, The Verge
Life cycle of online drug market•Early 2011 – Silk Road begins operations•March 2011 – Gawker reports on the site.•June 2011 – U.S. Senators ask Attorney General to crack down on Silk Road•Nov 2011 – Secret Service co-operating with overseas agencies on investigation•Oct 2013 – FBI shuts Silk Road
Challenges of online drug dealing
• Secrecy• User Confidentiality• Traceability of shipments• Trust
Internet payment systems
Liberty Reserve“'Black Market Bank' Accused of Laundering
$6 Billion” – ABC News
Liberty Reserve
Mr. A Money
Ex. Bank Mr. B MoneyEx.
Account A Account B
LRsLRs
LRs
Online Money Exchange
(Unregulated)Bank
(Unregulated)
B Co. (Caribbean)
Ltd.
OnlineMoney
Exchange (Regulated)
Technocash concedes 'one got through net' - The Australian
Shell Companies