Silk Road Sentence Fails to Deter Online Drug Trade

Remember The Silk Road?

The online marketplace became notorious for buying and selling illegal items, such as drugs and firearms, through a sophisticated network which promised anonymity.

The site was shut down in 2013 after it was infiltrated by US government agencies, who identified American web developer Ross Ulbricht as the founder.

Following a lengthy trial earlier this year, Ulbricht was convicted of multiple criminal offences, including drug trafficking, participating in a criminal enterprise, hacking and money laundering.

He was sentenced to life imprisonment, without any chance of parole.

Ulbricht’s criminal lawyers recently filed an appeal against the conviction and sentence, calling it ‘unreasonable, unjust and unfair,’ and arguing that it is ‘based on improper considerations that have no basis in fact or law.’

Sentencing Judge Katherine Forrest made it clear that the penalty was intended to send a strong message that ‘without equivocation… there will be severe consequences’ for engaging in the online drug trade.

But despite Judge Forrest’s warning, a recent study found that the sentence has done little to deter others from participating in such activities.

Dark Web More Popular Than Ever

Researchers at Pittsburgh’s Carnegie Mellon University conducted a study to determine how many dark websites continued to operate online in the wake of Ulbricht’s sentence.

What they found was astonishing: 35 online marketplaces were alive and well, drawing in between $100 and $180 million in sales annually – or $300,000 to $500,000 daily.

In comparison, the Silk Road was producing just $22 million in sales per year at the height of its popularity.

Based upon these figures, the researchers suggest that the closure of the Silk Road has done little to deter online drug transactions.

The Silk Road saga has, however, alerted site administrators to the dangers involved in running dark websites – which has resulted in the adoption of better security measures, such as ‘crypto software’ which allows buyers to send encrypted messages.

What are the Most Commonly Traded Drugs?

Research was also conducted into the types of drugs most commonly traded on the Dark Web.

It was found that marijuana and MDMA (‘ecstacy’) were the most common, followed by cocaine and prescription medications.

An Economic Argument

Although the Silk Road has made headlines for major drug busts, the study found that most online drug traders sell small quantities, with around 70% selling less than $1,000 worth. Just 2% sold more than $100,000 worth of products.

And while the grand total of $100 million in sales seems like a lot, researchers are quick to remind us that it is a small figure compared with the global drug trade, which reaps in an estimated $321.6 billion per year. This means that the vast majority of drug trading occurs through more traditional means, with online drug sales accounting for just 0.1% of all sales.

Despite this, law enforcement agencies continue to spend millions of dollars each year trying to shut down these websites.

According to researchers, this approach is counterproductive because online platforms lead to safer drug use and a lower risk of violence during transactions. They say that such platforms are not linked to major drug cartels and associated crime in the same way as traditional methods.

Nicholas Christin, one of the key researchers involved in the study, believes that there is much to learn from online drug trading platforms. He argues that accessibility to an online review system means that low-quality or dangerous drugs are quickly identified and weeded out. He hopes that the study will help shape ‘meaningful public policy toward online anonymous marketplaces.’

Christin believes that the enormous expenditure on shutting down these sites is unlikely to lead to their demise. He hopes that law enforcement agencies will stop wasting time and tax-payer money infiltrating these sites as:

‘economics tell us that because user demand for drugs online is present (and quite massive), enterprising individuals will seemingly always be interested in accommodating this demand.’

Ugur Nedim About Ugur Nedim
Ugur Nedim is an Accredited Specialist Criminal Lawyer and Principal at Sydney Criminal Lawyers®, Sydney’s Leading Firm of Criminal & Drug Defence Lawyers.

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