The Silk Road 2.0 website as well as dozens of other dark market websites were seized as part of a coordinated international law enforcement action involving the U.S. Attorney’s Office for the Southern District of New York, the Department of Justice’s Computer Crime and Intellectual Property Section, and multiple European law enforcement and intelligence agencies.

The chairman of a CFTC Global Markets Advisory Committee panel discussing Bitcoin derivatives wrote an opinion article on bringing commodities regulation to Bitcoin. The article states that Bitcoin and other virtual currencies have great potential to reshape the financial-services industry, but policy-makers should act quickly to establish a framework for their regulation.

a. Silk Road 2.0.
Federal investigators arrested Blake Benthall, the alleged founder of the Silk Road 2.0 site, and filed a complaint charging him with conspiracy relating to narcotics trafficking, computer hacking, transferring fraudulent identification documents and money laundering in connection with the sale of illegal goods and services on the site.

b. Shavers Ponzi

During a status conference in Mt. Gox’s U.S. Bankruptcy case this week, the exchange’s Japanese trustee advised the bankruptcy judge that he was in the process of reviewing the final offers to purchase the exchange and currently plans to announce a decision during November. He told the judge that the guiding principles he is using

Senator Chuck Schumer released an open letter addressed to U.S. Attorney General Eric Holder. In the letter, Schumer calls for the Department of Justice to remain vigilant in its efforts to combat the growth of dark websites selling illegal drugs, and pledges to continue to fight to ensure that the DOJ has adequate resources to

FinCEN issued two advisory rulings responding to requests from a virtual currency payment processor and a virtual currency exchange platform regarding their money transmitter status under federal law.  A summary and analysis of the rulings can be found here.

An Assistant U.S. Attorney stated during a virtual currency panel discussion that the US government is examining whether certain virtual currency businesses, many of which are based in Silicon Valley, should register with FinCEN and comply with anti-money laundering regulations.