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Ross Ulbricht, known as Dread Pirate Roberts to users of the SilkRoad website, was arrested last week, the FBI seized 26,000 Bitcoins belonging to Silk Road customers. But it also attempted, unsuccessfully, to claim the nearly 600,000 – thought to be worth around $80m – which Ulbricht himself is thought to be holding.

Silk Road is a notorious black market website which helped dealers to sell drugs under the cloak of anonymity.

Bitcoin is a digital currency based on a methods of cryptography similar to those used to protect confidential emails. Due to its decentralised nature – the currency does not rely on any centralised agency to process payments, instead relying on work done by users’ computers – it is popular for a number of fringe-legal and illegal uses. One of those uses was Silk Road, where Bitcoin was required for all transactions. 1 Bitcoin is equivalent to $138 usd.

According to the FBI’s complaint, the arrest led to the seizure of $3.6 million in bitcoins—the virtual currency Silk Road users employed to buy and sell illegal drugs online.

Though the FBI’s seizure was the second most valuable act of bitcoin confiscation ever, the Feds were actually unable to appropriate the vast majority of bitcoins associated with the Silk Road enterprise, Ulbricht’s personal stash. Roughly $80 million worth of bitcoins—the personal fortune Ulbricht amassed by running Silk Road—remains untouched by the government

So why can’t the FBI get its hands on the money? The reason has to do with the design of bitcoins themselves. A bitcoin cannot be transferred  from one user to another without the first users “private key,” or password to verify the transaction. Unless Ulbricht hands over his password, the FBI will be unable take possession of the money.

source: Forbes

The Federal Bureau of Investigation this week released its compiled 2012 crime data from 9,941 reporting agencies across the country.

Violent crimes are considered homicide, rape, robbery and aggravated assault.

Top Five Most Violent Cities in the U.S. (with more than 100,000 residents):

5. Memphis, Tenn.
> Violent crimes per 100,000: 1,750.0
> Population: 657,436
> 2012 murders: 133
> Poverty rate: 27.2%
> Percentage of adults with high school degree: 83.4%

Memphis had the third highest rate of aggravated assault in 2012, with 1,151.9 cases per 100,000 residents. This was up from the 1,032.3 cases per 100,000 in 2011. The city’s murder rate of 20.2 per 100,000 people and robbery rate of 514.4 per 100,000 people were also up from 2011. The high levels of crime has people in the Memphis area feeling uneasy. According to a recent Gallup survey, roughly 43% of Memphis area residents reported feeling unsafe walking at night, the highest percentage of all the 50 largest metropolitan areas in the country and significantly higher than the 28% across the United States.

4. St. Louis, Mo.
> Violent crimes per 100,000: 1,776.5
> Population: 318,667
> 2012 murders: 113
> Poverty rate: 27.0%
> Percentage of adults with high school degree: 83.9%

There were 1,120.6 aggravated assaults per 100,000 people in St. Louis in 2012, higher than all but three other cities. Moreover, the murder rate of 35.5 cases per 100,000 was the fifth highest of all cities. Although St. Louis’s violent crime was still among the highest in the country, it has improved. There were 80 less violent crimes per 100,000 people in 2012 compared to 2011 — the best improvement of any city on this list, with the drop mostly attributable to 106 less robberies per 100,000 people in 2012 compared to the previous year. Law enforcement officials attributed some of the drop to an increased police presence in high-crime neighborhoods.

3. Oakland, Calif.
> Violent crimes per 100,000: 1,993.1
> Population: 399,487
> 2012 murders: 126
> Poverty rate: 21.0%
> Percentage of adults with high school degree: 79.9%

There were 1,085.9 robberies per 100,000 residents in Oakland in 2012, higher than any other city. This was also significantly higher than the 851.2 robberies per 100,000 just a year earlier. The rates of murder and aggravated assaults also increased in 2012 compared to 2011. Violent crime was not the only issue in Oakland, either — there were 6,594 property crimes per 100,000 residents in 2012, more than all but eight other cities, and up from 5,287.9 in 2011. Crime in the city has increased ever since the city’s police department went through a round of layoffs in 2010 due to $30.5 million deficit.

2. Detroit, Mich.
> Violent crimes per 100,000: 2,122.6
> Population: 707,096
> 2012 murders: 386
> Poverty rate: 40.9%
> Percentage of adults with high school degree: 77.4%

Detroit’s murder rate of 54.2 per 100,000 residents was the second highest in the country last year. The homicide rate in Detroit, which included 386 criminal murders and an additional 25 justifiable homicides, reached the highest level in nearly 40 years. In addition, the city’s aggravated assault rate of 1,320.8 cases per 100,000 people was also the second highest in the United States, although this was an improvement from the 1,333.6 cases per 100,000 residents in 2011. Detroit has struggled economically in recent years. The city’s 2012 unemployment rate was a whopping 18.6%, much higher than the 8.1% across the nation last year. The median household income of $25,193 was less than half the national median for 2011.

1. Flint, Mich.

> Violent crimes per 100,000: 2,729.5
> Population: 101,632
> 2012 murders: 63
> Poverty rate: 40.6%
> Percentage of adults with high school degree: 82.9%

With a staggering 2,729.5 violent crimes per 100,000 residents, no city had a higher violent crime rate than Flint. The city of just 101,632 people had 63 total murders and 1,930 aggravated assaults, both the highest relative to the city’s population. Flint also had nationwide highs in burglary rates and arson per 100,000 people. The sheriff of Genesee County, where Flint is located, proposed a plan to create a violent crime mobile response unit that would cost $3 million. However, Governor Rick Snyder rejected the plan because he believed resources would be better “integrated into the ongoing efforts to make Flint safer.” Like Detroit, Flint has suffered economically in recent years. The median household income was just $23,380 in 2011, the second-lowest of all 555 cities measured by the U.S. Census Bureau.

source: Yahoo

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The number of wiretaps secured in federal criminal investigations jumped 71 percent in 2012 over the previous year, according to newly released figures.

Federal courts authorized 1,354 interception orders for wire, oral and electronic communications, up from 792 the previous year, according to the figures, released Friday by the Administrative Office of the United States Courts. There was a 5 percent increase in state and local use of wiretaps in the same period.
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Footage from the raid on Megaupload founder Kim Dotcom’s New Zealand home has finally been released and it’s adding more controversy to a case that is not going smoothly for U.S. authorities.

The raid was carried out on January 20, 2012 by New Zealand’s Elite Special Tactics Group in response to U.S. charges of criminal copyright infringement. The team used two helicopters, four police vehicles, police dogs and officers armed with semi-automatic Colt Commando 5.56 guns according to Business Insider.com.

Dotcom was at home with his pregnant wife, three children, some guests and staff when the raid occurred.  Checkout Video below:

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Source: Washington Post

A year long investigation by Washington, D.C. police and the Bureau of Alcohol, Tobacco and Firearms has resulted in the seizure of 161 weapons and $7.2 million in drugs. The crazy thing is that they pulled this off by posing as a fictional rap label.

The team operated out of the “Manic Enterprises” studio, which was run by fictional rapper “Richie Valdez” (D.C. Police Sgt. Dale Sutherland) and located inside of a Northeast DC rowhouse. The “studio” opened in November of 2010, and featured normal studio equipment, as well as some addition technology-hidden audio and video gear.

According to authorities, many of the 70 suspects admitted they would kill police or innocent people if they deemed it necessary. Naturally, that didn’t sit well with the undercovers. Also, if you’re wondering what that $7 million in drugs consisted of, it included 80 pounds of meth, 21 pounds of coke, 1.25 gallons of PCP and 24 pounds of marijuana, heroin and ecstasy.

In addition to recovering the weapons-which included a rocket launcher-and drugs, a trip to Atlanta during the investigation yielded a connection to the Mexican Drug Cartel “La Familia,” who allegedly introduced the feds to a Georgia gun supplier.

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