Silk Road, Alphabay, And Hansa Marketplace Prosecutions
1. United States v. Ross Ulbricht (Silk Road, 2015)
Who: Ross Ulbricht, founder/operator of Silk Road.
Crime: Running an illegal marketplace selling drugs, weapons, and hacking tools.
Charges: Conspiracy to commit money laundering, narcotics trafficking, computer hacking, and continuing criminal enterprise.
Outcome: Convicted on all counts; life imprisonment without parole.
Significance: Landmark case showing serious consequences for darknet market operators.
2. United States v. Gal Vallerius (Alphabay Vendor, 2017)
Who: Gal Vallerius, Alphabay vendor selling drugs.
Crime: Drug trafficking and money laundering via Alphabay marketplace.
Charges: Narcotics distribution and conspiracy.
Outcome: Pleaded guilty; sentenced to prison.
Significance: First major vendor prosecution showing law enforcement targeting sellers, not just operators.
3. United States v. Alexandre Cazes (Alphabay Operator, 2017)
Who: Alexandre Cazes, creator and admin of Alphabay.
Crime: Running a marketplace facilitating sales of drugs, stolen data, and counterfeit goods.
Charges: Multiple charges including conspiracy and narcotics trafficking.
Outcome: Cazes was arrested but died by suicide shortly after custody.
Significance: Showed international collaboration in darknet takedown.
4. Dutch Authorities v. Hansa Market Operators (2017)
Who: Hansa Market admins.
Crime: Operating a darknet marketplace for illegal trade.
Operation: Dutch police secretly took over Hansa Market before shutting it down, gathering user data.
Outcome: Admins arrested; many users later prosecuted using collected evidence.
Significance: Innovative law enforcement tactic: running a criminal marketplace undercover.
5. United States v. Blake Benthall (Silk Road 2.0 Operator, 2017)
Who: Blake Benthall, operator of Silk Road 2.0 (successor to Silk Road).
Crime: Operating a darknet marketplace similar to Silk Road.
Charges: Drug trafficking conspiracy, money laundering.
Outcome: Pleaded guilty; sentenced to 5 years.
Significance: Showed persistence of darknet markets despite takedowns.
6. United States v. Larry Dean Harmon (Bitcoin Mixer, 2020)
Who: Larry Dean Harmon, operator of Bitcoin mixer “Helix” used by darknet market users.
Crime: Money laundering facilitation for Alphabay and others.
Outcome: Indicted and pleaded guilty; sentenced to 2 years.
Significance: Highlighted crackdown on laundering services supporting darknet crime.
Summary Table
| Case | Person(s) Involved | Crime | Outcome | Importance |
|---|---|---|---|---|
| Ulbricht (Silk Road) | Founder/operator | Narcotics trafficking, money laundering | Life imprisonment | Darknet operator liability |
| Vallerius (Alphabay vendor) | Vendor | Drug trafficking | Guilty plea, prison | Targeting sellers, not just operators |
| Cazes (Alphabay operator) | Admin | Running illegal marketplace | Arrested, died in custody | Intl. cooperation in darknet takedown |
| Dutch Police (Hansa takeover) | Admins + Law enforcement | Operating darknet market | Arrests, evidence collection | Undercover law enforcement tactics |
| Benthall (Silk Road 2.0) | Operator | Drug trafficking, money laundering | Guilty plea, 5 years | Persistence of darknet markets |
| Harmon (Bitcoin Mixer Helix) | Money launderer | Facilitating darknet money laundering | Guilty plea, 2 years | Targeting financial facilitators |
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