Online Black Market “Silk Road” Shut Down; FBI Connects Owner to the Mises Institute

Ash Navabi

October 2, 2013

The online black market Silk Road, that served as a haven for those interested in purchasing illicit materials (along with perfectly legal goods like books and clothes), has been seized and shut down by the FBI, along with the arrest of its founder, Ross William Ulbricht (also known as Dread Pirate Roberts, or DPR) according to Russia Today.

(On how the seizure could have taken place unconstitutionally, consider this source.)

The FBI has seized millions of dollars in Bitcoin, sending, of course, the electronic currency into freefall. Who knows what other kind of electronic information they have seized.

But especially interesting-and potentially worrisome-is that in its criminal complaint against Ulbricht, the FBI connects Ulbricht with the (American) Mises Institute, and the ideas of Murray Rothbard and Ludwig von Mises. (Hat tip to Steve Patterson.) Here is what the FBI said, on page 27 of their report:

DPR has cited the “Austrian Economic theory” and the works of Ludwig von Mises and Murray Rothbard - economists associated with the “Mises Institute” - as providing the philosophical underpinnings for Silk Road.

Of course, Mises and Rothbard were totally against state regulation of trade between consenting adults regarding drugs. Here is Mises:

Whoever is convinced that indulgence or excessive indulgence in these poisons is pernicious is not hindered from living abstemiously or temperately. This question cannot be treated exclusively in reference to alcoholism, morphinism, cocainism, etc., which all reasonable men acknowledge to be evils. For if the majority of citizens is, in principle, conceded the right to impose its way of life upon a minority, it is impossible to stop at prohibitions against indulgence in alcohol, morphine, cocaine, and similar poisons. Why should not what is valid for these poisons be valid also for nicotine, caffeine, and the like? Why should not the state generally prescribe which foods may be indulged in and which must be avoided because they are injurious?

And Rothbard:

Stephan Kinsella has pointed out ideas are free. But to the State, ideas can be dangerous. The State has a long history of harassing, intimidating, blackmailing, and coercing (and worse) those with ideas it deems unacceptable. But as Ludwig von Mises himself said, “Both force and money are impotent against ideas.” At the end of the day, we are in a battle of ideas. And good ideas do not win by themselves-they need actual human beings to serve as soldiers and generals, as defenders and strategists.

The demise of the Silk Road is a loss for freedom. But it is only a defeat if you let it be.

Tu Ne Cede Malis.