@daily_btc_lore | Daily Bitcoin History Threads

July 1, 2015 | 11 years ago today

Carl Force and the $700K Bitcoin TheftCarl Force and the $700K Bitcoin Theft

On July 1, 2015, a 15-year DEA Special Agent named Carl Mark Force IV walked into federal court in San Francisco and pleaded guilty to extortion, money laundering, and obstruction of justice. He had been the lead undercover agent on the United States government's investigation into Silk Road, and he had been stealing Bitcoin from it the entire time.

The Nob PersonaThe Nob Persona

Force's authorized undercover role was "Nob," a fictional drug cartel contact who built a trusted relationship with Ross Ulbricht (Dread Pirate Roberts). The DEA knew about Nob. Force reported his work through official channels and appeared to be performing the most sensitive job on the task force with distinction.

The French MaidThe French Maid

What no one on the task force knew: Force had invented a second persona called "French Maid" and was using it to sell Ulbricht inside intelligence about the government's investigation. This role was entirely unsanctioned, conducted in secret from his colleagues. Ulbricht paid him roughly $100,000 in Bitcoin for the tips.

The Fake MurderThe Fake Murder

When Ulbricht suspected an informant named Curtis Green of theft and ordered a hit on him, Force and fellow agent Shaun Bridges staged a fake murder in a Utah hotel suite, sending Ulbricht staged photographs as proof of death. Ulbricht paid $80,000 in Bitcoin for the supposed killing. Force and Bridges kept the money.

The CoinMKT Double-DipThe CoinMKT Double-Dip

Force had also secretly taken a position as Chief Compliance Officer at CoinMKT, a Bitcoin exchange, without DEA authorization. When a $337,000 account was flagged for suspicious activity, Force ordered it frozen using his federal authority and then transferred $300,000 into his personal bank account. He falsified the seizure report to show only $37,000 had been taken.

The DownfallThe Downfall

Force attempted to launder his stolen Bitcoin through Venmo and Bitstamp. Both services flagged the transactions and froze his accounts. He responded by sending an invalid DEA subpoena from his personal email address, without supervisory approval. The move drew the scrutiny that led to his arrest.

The ReckoningThe Reckoning

Force pleaded guilty on July 1, 2015. Judge Richard Seeborg sentenced him to 78 months in federal prison on October 19, 2015, and ordered $340,000 in restitution. The depth of his corruption permanently undermined the government's narrative of a clean Silk Road prosecution and became a recurring centerpiece of Ross Ulbricht's clemency arguments in the years that followed.

Further ReadingFurther Reading

• DEA Agent Who Faked a Murder and Took Bitcoins from Silk Road Explains Himself (Vice)
• Inside Silk Road's Staged Assassinations (Bitcoin Magazine)

Part of an ongoing series on Bitcoin history. This event falls on July 1, 2015.