Silk Road vs AlphaBay: Before and After Law Enforcement Seizure
It is now an undeniable fact that Silk Road and AlphaBay, although operating in different periods, were the largest and arguably the top players in the international darknet market scene. First came Silk Road (2011), followed later by AlphaBay (2014). The arrest of Silk Road’s founder, Ross William Ulbricht (note: we recently posted a book about him and his story—see above in the channel), may have opened the door for smaller players to emerge, one of which grew into AlphaBay. In any case, we may never know the full story.
Why Did the Closure of Silk Road Lead to the Rise of Other Darknet Markets?
The answer is simple. Silk Road was the first unique project that revolutionized the concept of black markets on the internet. It was the world’s very first underground marketplace, with thousands of customers buying various goods. When the site was shut down, the demand remained. And as we know, demand creates supply, so many new enthusiasts and copycats quickly appeared. Some vendors even decided to launch their own sites on the Tor network. (You can read more about the consequences here.)
What Happened to Silk Road Users’ Money?
Users suffered financially as well. When Silk Road, which operated from February 2011 to October 2013, was seized by law enforcement, 26,000 bitcoins were confiscated. At the time, those bitcoins were worth about $3.6 million, but today, the same amount is valued at over $500 million.
What Happened to AlphaBay?
AlphaBay, launched at the end of 2014 and seized in mid-2017, grew much larger in just three years: by some estimates, its operations were ten times the scale of Silk Road. The marketplace was shut down after a massive operation involving law enforcement agencies from several countries and various international organizations.
Similarities and Differences Between the Two Darknet Markets
Although both Silk Road and AlphaBay were seized by authorities, their founders faced different fates. Silk Road was a pioneer and mainly operated in the US and Europe, while AlphaBay was a truly global platform, with its network stretching across the EU, Australia, and the US, and even offering deliveries to Russia.
The Fates of the Founders
While Ross Ulbricht, the man behind the first major Tor-based market, was sentenced to life in prison, AlphaBay’s administrator, Alexandre Cazes, ultimately committed suicide in a Thai jail before his trial began.
Ross Ulbricht, who was 29 at the time of his arrest, operated under the pseudonym “Dread Pirate Roberts” or “DPR.” He faced seven charges, including identity theft, money laundering, drug trafficking, and running a criminal enterprise. Alexandre Cazes, in a way, was “lucky,” as he was likely facing the same fate as Ross. His death occurred just after Ross’s appeal was denied and his life sentence was upheld. Apparently, Cazes realized he wouldn’t survive in prison and chose a different path.
A Bit About the Seizure Operation
The operation to take down AlphaBay was much larger than the one against Silk Road. Multiple government agencies from around the world (including the US, Germany, Finland, and Australia) participated, as AlphaBay’s activities were truly global. The takedown also led to the fall of another darknet market called Hansa, making it one of the most significant criminal investigations of 2017.
What Happened to AlphaBay Users’ Money?
Interestingly, in the case of AlphaBay and Hansa, it’s unknown how many bitcoins were seized by federal agents and other agencies involved in the operation. It certainly wasn’t a small amount—it was a massive chunk of digital assets, likely worth billions of dollars. By the time AlphaBay was nearing its closure, it had also started accepting other cryptocurrencies like Monero and Ethereum, leaving no doubt that darknet markets played a significant role in the growth of cryptocurrencies today.
P.S. If you’re interested in how darknet marketplaces in Europe are being shut down one after another and how their users are being caught, we recommend reading this article.