Coinbase Temporarily Disables Ross Ulbricht’s Account, Hires Silkroad Prosecutor

Yesterday, cryptocurrency exchange Coinbase disabled alleged Silkroad founder Ross Ulbricht’s account. They reactivated it later, citing security concerns. After this happened, some people pointed out Coinbase just hired Silkroad prosecutor, Kathryn Haun, which exacerbated worries that Coinbase may be targeting the Ulbricht campaign. 

Also read: Top German Banker Warns Cryptocurrencies Could Precipitate a Financial Crisis

When people mentioned Haun had been hired, it caused some individuals to level verbal assaults, saying Coinbase should not hire the enemy.

It appeared the community was prepared to wage a pitched battle against the Coinbase team. However, the situation was quickly neutralized when Coinbase brought the account back online.

The Ross Ulbricht campaign tweeted about the issue when the account was shut down, saying:

And disabled the account after receiving 16.5 today. Now can’t pay lawyers.

Then today, @Free_Ross tweeted the account had been restored and everything was back in working order.

The Silkroad Prosecutor; Ulbricht’s Campaign

The timing of hiring Haun was also rather strange, but likely a coincidence. It turns out that the prosecutor was not the Federal attorney that convicted Ulbricht. Haun was the one who put the agents that stole his bitcoin behind bars.

Coinbase Temporarily Disables Ross Ulbricht's Account, Hires Silkroad Prosecutor
Ross Ulbricht

Nonetheless, it is understandable why some individuals in the community would be sensitive to this kind of issue. It leaves a bad taste in people’s mouths when federal prosecutors, who were deeply involved in a bitcoin consensual crime case, are suddenly awarded a corporate position with a deeply entrenched bitcoin exchange platform.

In the end, the story turned out to be not as bad as it initially sounded. Still, it remains to be seen what will become of Ross Ulbricht, who does not belong behind bars according to many. At least his family and friends can continue funding his campaign, and perhaps some day they will receive some semblance of justice.

Do you think Coinbase did something wrong in all of this? Do you believe Ulbricht should be freed from prison? Share your thoughts below!

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  • Not surprising for Coinbase… think they back-tracked out of good-will? They just found out they couldn’t get away with it.

  • mike copple

    Why is Ross Ulbricht still imprisoned? He should have never been arrested in my opinion. He should be free, celebrated with meaningful employment. He was obviously railroaded by the justice department. The Silk Road severely threatened the established corrupt order of things. Come on President Trump…how about an immediate presidential pardon and could you please tell AG Sessions to lay off the cannabis infatuation and start seriously concentrating on the meth/heroin epidemic.

    • There are hundreds of thousands to millions that you never see. The justice system is a giant machine that you do not want to be caught up in, yet we have the highest per-capita rate in the world (by far). We even have the highest total incarceration rate, exceeding nations 4x our population in count.

      And AG Sessums is the most anti-pot dude you could put in that office, It is scary!

      • drowninbleach

        Amen, the Land of the Free…..what a shame.

  • Coinbase is always going to flip, they operate in the US.

  • Never trust the FEDs or your lawyers and never store your coins in the USA. KYC and AML will allow the Statist the control over them. Take your coins out, now. Go to a better country, use altcoins and rotate when possible. There is nothing illegal in treating your coins like raw gold. Place them in paper wallets whenever possible, tell no one how safely and deeply you hide them. Make the FEDs use all their dirty tactics they bear no remorse in using them. Gold changes everyone so have those looking, to look through the refuse and rubbage of the world they think they control.

  • They [Coinbase] actually have a near monopoly as an entry//exit point for cryptocurrencies in the USA. Not total. But very close. And I think that is how the powers that be want it. Probably the regulation is so onerous and expensive that Coinbase was the only one able to afford to get it, then ate up competitors (like Circle). So, for them to mention it makes sense, as it is — unfortunately — a monopoly. I would love to see anti-trust action against Coinbase, but that is some fantasy, lol.

    • Dr. Bubó

      Didn’t know that. What’s stopping US citizens to use other exchanges based abroad?

      • Their own local regulations AFAIK. Then there is the issue of getting the money to them. It is, at the very least, if not impossible, a whole lot less feasible. I have yet to even find a *single* other way to buy Bitcoin online in the USA. The few sites that exist don’t support my ‘State’ (Tennessee) or other crud, none work. It is as if I’ve been black-listed, but w/o any chance for defense!

        • Dr. Bubó

          Why is it impossible to send money abroad and buy bitcoin for pound or euro??? I have never been in the US but I own US shares and have income from the US and can buy anything from the US. Why can’t you??? Even people in Russia and China can get their money out, why can’t you?? You sure you living in the USA not North Korea?

          • I was careful *not* to say impossible. It is an order of magnitude more cumbersome and inefficient.

          • Dr. Bubó

            OK, but still don’t get it. Bitcoin is often moving 10-20% a day, so what if it cost 3% more to buy it for the long term? But with my currency card I can pay in foreign currency with no extra cost at all and there is Revolut and so on, so…