U.S. Federal authorities have seized more than $3 million worth of Bitcoins after closing down Silk Road, the online marketplace that allegedly allowed more than a billion dollars of illegal drugs and illicit services to be bought using the virtual currency.
As part of the raid, the Federal Bureau of Investigation arrested Silk Road's alleged proprietor, the 29-year-old Ross William Ulbricht who goes by the name "Dread Pirate Roberts." He appeared in a San Francisco court on Wednesday, charged with conspiracy in narcotics trafficking, computer hacking and money laundering
The shutdown of Silk Road, which has drawn ire from regulators and politicians in recent years for allegedly aiding illegal activities, is a major blow to Bitcoin. The price of Bitcoin, which has been lauded by its proponents as a possible alternative to government-controlled currencies, fell 8.6 percent to $128 on Wednesday.