Virginia Fusion Center, VFC Intelligence Bulletin 13-02: TOR, Bitcoins, Silk Road, and the Hidden Internet , April 19, 2013. Unclassified.
National Security Archive
Virginia’s Fusion Center warned detectives in 2013 that Tor’s Navy roots and Bitcoin’s unregulated cash were giving criminals a new, hard‑to‑trace marketplace.
Source: Virginia Fusion Center, VFC Intelligence Bulletin 13-02: TOR, Bitcoins, Silk Road, and the Hidden Internet , April 19, 2013. Unclassified. Date: Apr 19, 2013 Archive: This bulletin explained to law enforcement ways in which the "hidden internet" was being used by criminals. Collection: Cyber Vault: OPM Responsible for 2015 Hack of Personal Info? Sep 27, 2017
Editorial Analysis
Original analysis by the DriftSeas editorial desk. The complete primary-source document, transcribed from the National Security Archive scan, appears in full below.
A Law‑Enforcement Primer for a New Dark‑Web Era
The Virginia Fusion Center’s April 19 2013 intelligence bulletin was drafted at a moment when three converging technologies – Tor, Bitcoin and the Silk Road marketplace – were reshaping the calculus of criminal investigations. The Fusion Center, a state‑level information‑sharing hub created after 9/11 to fuse local, state, federal and private intelligence, issued the bulletin as a quick‑reference guide for detectives who were suddenly confronted with evidence that traditional subpoenas and IP logs could no longer pierce. Its purpose statement makes that clear: to give “awareness and a basic understanding of the ‘Hidden Internet’” and to illustrate how it could be exploited by “criminal elements.”
The document arrives just weeks after the FBI’s first public acknowledgment that Silk Road, the illicit drug market hidden behind a Tor onion address, was operating at scale. By early 2013, Silk Road’s monthly volume had eclipsed $100 million, and the site’s founder, known only as “Dread Pirate Roberts,” was already the subject of a multi‑agency task force. The bulletin therefore serves as a snapshot of the law‑enforcement community’s first systematic attempt to codify knowledge about a network originally funded by the U.S. Naval Research Laboratory.
From Naval Research to Criminal Marketplace
The bulletin’s opening paragraph on Tor is a rare admission that the anonymity network was a U.S. government project. It notes that Tor was “initially designed and implemented as a third generation onion routing project by the United States Naval Research Laboratory” and that its original mission was to protect “sensitive communications for the United States Navy.” By foregrounding this lineage, the authors implicitly remind readers that the technology itself is not illicit; rather, it is the intent of the user that determines legality. The text stresses that “the use of TOR is not illegal in and of itself,” a diplomatic phrasing that seeks to avoid alienating legitimate privacy advocates while warning investigators that the presence of Tor on a suspect’s computer “may be an indicator that not all of the individual’s internet browsing history will be obtainable through traditional means.”
Bitcoin: The Currency of Anonymity
The second half of the bulletin shifts to Bitcoin, framing it as the financial counterpart to Tor’s technical anonymity. It describes Bitcoin as a “digital currency, a protocol, and a software” that enables “instant peer‑to‑peer transactions” without a regulated intermediary. The authors stress the same legal nuance: buying, holding, or spending Bitcoin is not a crime per se, but the combination of Bitcoin with hidden services creates a “great challenge” for investigators. By citing Mt. Gox as the dominant exchange and quoting circulation figures—over 1.3 billion dollars in value at the time—the bulletin underscores the scale of the problem and the need for law‑enforcement officers to become conversant with wallet software, transaction tracing, and the limits of subpoenas.
What the Bulletin Reveals Between the Lines
While the bulletin is ostensibly a neutral instructional sheet, several subtextual messages emerge. First, the emphasis on “law‑enforcement sensitive” markings and distribution restrictions signals an awareness that the very knowledge about how to navigate Tor could be weaponized if it fell into the wrong hands. Second, the inclusion of simple diagrams of onion routing reflects an assumption that many field agents lacked even a rudimentary technical background—an admission of the learning curve law‑enforcement faced when confronting cyber‑enabled crime. Third, the document’s tone—cautiously neutral about Tor and Bitcoin—mirrors the broader federal debate of the era, where agencies such as the NSA and the Department of Justice were simultaneously championing encryption for national security while lobbying for backdoors to combat illicit markets.
Legacy and Continuing Relevance
The 2013 bulletin is an early artifact of a policy arena that has since exploded: the tension between privacy‑enhancing technologies and criminal investigations. Within two years, the FBI would seize Silk Road’s servers, arrest its operator, and later dismantle a successor, Silk Road 2.0. Meanwhile, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued guidance on virtual currencies, and courts began to accept blockchain analysis as admissible evidence. The Virginia Fusion Center’s primer foreshadowed those developments by insisting that investigators treat Tor and Bitcoin as tools—neutral in themselves but potentially dangerous in combination.
Today, the same bulletin would need updates for newer anonymity networks (e.g., I2P), decentralized exchanges, and privacy coins like Monero. Yet its core lesson endures: effective policing in the digital age requires not only legal authority but also a baseline technical literacy that bridges the gap between a suspect’s encrypted browser and the forensic tools of the state. The document stands as a reminder that the “hidden internet” is not a static threat but an evolving ecosystem, and that law‑enforcement agencies must continually adapt their knowledge base to keep pace.
VIRGINIA FUSION CENTER VIRGINIA STATE POLICE Phone (804) 674-2196 Fax (804) 674-2983 Terrorism Hotline (877) 4VA-TIPS VFC@vsp.virginia.gov
This is LAW ENFORCEMENT SENSITIVE information and is protected by Code of Virginia Title 52-48 and 52-49 unless otherwise noted. Further distribution of this document outside your organization is prohibited; prior written approval shall be obtained from VFC for dissemination to other agencies. Persons or organizations violating distribution restrictions may be prosecuted and will be prohibited from receiving future documents. NO REPORT OR SEGMENT THEREOF MAY BE RELEASED TO ANY MEDIA SOURCES. Please contact the Virginia Fusion Center at (804) 674-2196 if you have any questions or need additional information.
April 19, 2013 VFC Intelligence Bulletin 13-02 TOR, Bitcoins, Silk Road, and the Hidden Internet
Purpose The purpose of this bulletin is to provide awareness and a basic understanding of the "Hidden Internet" to investigators in the field, as well as provide some examples of how the Hidden Internet can be exploited by criminal elements.
While the term "Hidden Internet" can be used in a broader context and refer to other internet terms such as the "Deep Web" or "Deepnet," for the purpose of this bulletin the term "Hidden Internet" will refer to the hidden services provided by the TOR project to internet users, specifically relating to the Silk road website and use of Bitcoins.
TOR Project The TOR project was initially designed and implemented as a third generation onion routing project by the United States Naval Research Laboratory. While the inception and design was for the purpose of protecting sensitive communications for the United States Navy, today it is utilized by over 500,000 users every day for both legal and illegal activities.¹
The TOR project's primary goal is to increase privacy and security for internet users, as stated in their own 2012 Annual Report. This is accomplished through the onion routing system that utilizes TOR volunteers which are used as relays. As users connect through TOR, their data is routed through a series of relays, is encrypted, and as a result does not provide the users location, other identifying information, or original IP address.
The following diagrams can be seen on the TOR project's website and provide an explanation of how TOR works.
¹ (OS) TOR Project: Annual Report, 2012 LAW ENFORCEMENT SENSITIVE- No Further Distribution Without Permission 1
VIRGINIA State Federal Local Private FUSION CENTER SCIENTIA EST POTENTIA
VIRGINIA FUSION CENTER VIRGINIA STATE POLICE Phone (804) 674-2196 Fax (804) 674-2983 Terrorism Hotline (877) 4VA-TIPS VFC@vsp.virginia.gov
VIRGINIA STATE POLICE
How Tor Works: 1 Tor node unencrypted link encrypted link
Alice Step 1: Alice's Tor client obtains a list of Tor nodes from a directory server. Dave Jane Bob
How Tor Works: 2 Tor node unencrypted link encrypted link
Alice Step 2: Alice's Tor client picks a random path to destination server. Green links are encrypted, red links are in the clear. Dave Jane Bob
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VIRGINIA FUSION CENTER
VIRGINIA STATE POLICE
Phone (804) 674-2196
Fax (804) 674-2983
Terrorism Hotline (877) 4VA-TIPS
VFC@vsp.virginia.gov
**How Tor Works: 3**
Tor node
unencrypted link
encrypted link
Alice
Step 3: If at a later time, the user visits another site, Alice's tor client selects a second random path. Again, **green links** are encrypted, **red links** are in the clear.
Dave
Jane
Bob
It is important to note that the use of TOR is not illegal in and of itself. Further, the use of TOR provides a service that can be a useful tool both to individuals personally, for governments, and law enforcement personnel. For example, TOR can provide an investigator a level of anonymity while conducting investigations covertly on the internet, such as attempting to monitor a suspect's Facebook or Myspace account without the risk of identifying the investigators location or IP address.
If electronic evidence is seized and subsequently searched for digital evidence during an investigation, the discovery of the TOR software on a computer **may** be an indicator that not all of the individual's internet browsing history will be obtainable through traditional means, i.e. subpoena, to the individual's internet service provider.
**Bitcoins**
While TOR provides individuals the ability to remain anonymous on the internet, it would not be possible to establish a cyber black market without the ability to exchange currency. Bitcoins are a virtual currency traded online over peer-to-peer networks allowing both the providing and receiving parties to remain anonymous to one another.
LAW ENFORCEMENT SENSITIVE- No Further Distribution Without Permission
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VIRGINIA FUSION CENTER
VIRGINIA STATE POLICE
Phone (804) 674-2196
Fax (804) 674-2983
Terrorism Hotline (877) 4VA-TIPS
VFC@vsp.virginia.gov
A Bitcoin is “a digital currency, a protocol, and a software that enables; Instant peer to peer transactions, and Worldwide payments²” which allows users to conduct online transactions without the use of standard regulated world currencies. For law enforcement, the use of Bitcoins in conjunction with the Hidden Internet, poses a great challenge.
Bitcoins can be purchased several ways, including online exchanges (Mt. Gox being the most common), private companies, or individuals who have Bitcoin holdings already. To begin trading in Bitcoins all a user needs to do is choose a wallet and install it on a computer or smartphone/tablet. Once the user has the wallet they are able to send and receive Bitcoins.
Bitcoins are not regulated or insured by any government or banking system. As such, the use of Bitcoins, the terminology, and execution are extremely technical and will not be covered in this bulletin but the explanations and descriptions are widely available on the Internet.
Since the inception of Bitcoins in 2009 there has been a continuous rise in the usage and total value of Bitcoins in circulation. There are over 50,000 Bitcoin transactions daily equaling millions of U.S. dollars. The total value of all Bitcoins in circulation is over 1.3 billion³.
As is the case with the use of TOR, the purchase, receipt, and use of Bitcoins is not illegal in and of itself and perfectly legitimate transactions are made such as paying for clothing, hotels, restaurants, and allowing individuals or groups to make anonymous donations⁴. However, with the limited exposure to detection and high potential for profit, the use of TOR and Bitcoins has laid the foundation for the exploitation of these services by criminal elements.
**Silk Road**
The Silk Road is a hidden website that can only be accessed using TOR or other services (such as Onion.to) that will route through TOR. The hidden net address for The Silk Road Anonymous Marketplace is: http://silkroadv5p5cbl6.onion/.
The Silk Road is the largest, most utilized, and most well-known website dealing in illegal items on the Hidden Internet. The Silk Road is known for the sale and distribution of illegal drugs and substances. The Silk Road’s founder/owner is known as “The Dread
² (OS) Bitcoin.org: An open source P2P digital currency, April 2013
³ (OS) Bitcoin.org: About Bitcoin, April 2013
⁴ (OS) Scottish Police College, Interview, April 3, 2013
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VIRGINIA FUSION CENTER VIRGINIA STATE POLICE Phone (804) 674-2196 Fax (804) 674-2983 Terrorism Hotline (877) 4VA-TIPS VFC@vsp.virginia.gov
Pirate Roberts,” and once into the site he provides an overview of the Silk Road, its history, and its purpose as laid out below:
Greetings and welcome to Silk Road!
I'd like to take a moment to share with you what Silk Road is and how you can make the most of your time here. Let's start with the name. The original Silk Road was an old world trade network that connected Asia, Africa and Europe. It played a huge role in connecting the economies and cultures of these continents and promoted peace and prosperity through trade agreements. It is my hope that this modern Silk Road can do the same thing, by providing a framework for trading partners to come together for mutual gain in a safe and secure way.
You may be shocked to find listings here that are outlawed in your jurisdiction. That doesn't mean Silk Road is lawless. In fact, we have a very strict code of conduct that, if given a chance, most people I think would agree with. Our basic rules are to treat others as you would wish to be treated, mind your own business, and don't do anything to hurt or scam someone else. In the spirit of those rules, there are some things you will never see here, and if you do please report them. They include child pornography, stolen goods, assassinations and stolen personal information, just to name a few. We also hold our members to the highest standards of personal conduct and work tirelessly to prevent, root out and stop any scammers that may try to prey upon others.
However, the best way to stay safe and make sure your experiences here are enjoyable is to educate yourself on how Silk Road works, and take advantage of all the tools and guidelines we have made for you. A link to a complete guide can be found on your account page, but here are a few tips to get you started:
- Always use the escrow system! This can't be stressed enough. 99% of scams are from people who set up fake vendor accounts and ask buyers to pay them directly or release payment before their order arrives. This behavior should be reported immediately. If you do choose to do this, we will be completely unable to help you in the event of fraud.
- Read the forum and the wiki. They contain a wealth of information and many in our forum community are eager to help a new member with a respectful attitude.
- Start small. Do a few small trades until you are comfortable with the process before throwing all of your Bitcoins at a big purchase.
The old saying, “with freedom comes responsibility,” couldn't be more true here. You will find easy access to things that could get you in trouble with your authorities and are downright terrible for your health. So, just because you can, doesn't mean you should. However, I'm not your daddy and it's your job to judge what is good and bad for you. No one else can do that.
Stay safe, have fun, and come say hi on the forums!
Sincerely, Dread Pirate Roberts
For the purposes of this bulletin, the Virginia Fusion Center (VFC) established, through the use of TOR, a Silk Road account. The following are screen shots of the site from initial logon, to browsing. For any individual who is comfortable with the internet the entire process can take only minutes.
The following screenshots show the initial account set up screen, login screen, as well as browsing screen shots of items that could be purchased from the site. For the purposes of this bulletin, a covert screen name was utilized. The screenshots are simply samples of the items listed on the site, and in no way are all inclusive.
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VIRGINIA
FUSION
CENTER
State
Federal
Local
Private
SCIENTIA EST POTENTIA
VIRGINIA FUSION CENTER
VIRGINIA STATE POLICE
Phone (804) 674-2196
Fax (804) 674-2983
Terrorism Hotline (877) 4VA-TIPS
VFC@vsp.virginia.gov
VIRGINIA
STATE
POLICE
Screenshot 1: Registration/Account set up
TorBrowser
register | Silk Road
+
silkroadvb5piz3r.onion/silkroad/register
Startpage
user name
passphrase
repeat
PIN
repeat
DO NOT forget your PIN!
Select new
location ?
touch91
Go
Warning:
DO NOT forget or lose your PIN and passphrase!!! Your PIN is required to
make purchases, withdraw funds, and make important changes to your
account. If you forget your PIN or passphrase, or give it to the wrong people on
a phishing site, for example, there will be NO WAY to recover your account. All
money deposited to your account and reputation associated with it will be lost!!!
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VIRGINIA FUSION CENTER
VIRGINIA STATE POLICE
Phone (804) 674-2196
Fax (804) 674-2983
Terrorism Hotline (877) 4VA-TIPS
VFC@vsp.virginia.gov
Screenshot 2: Initial login/user password
TorBrowser
How And Why To Get To Silk Road - ...
login | Silk Road
silkroadvb5piz3r.onion/silkroad/home
Startpage
user name
passphrase
mu11816
Go
- click here to join
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VIRGINIA FUSION CENTER VIRGINIA STATE POLICE Phone (804) 674-2196 Fax (804) 674-2983 Terrorism Hotline (877) 4VA-TIPS VFC@vsp.virginia.gov
Screenshot 3: Marijuana/Cannabis Listings
Silk Road anonymous market messages 0 orders 0 account B0.00 Search Go a few words from the Dread Pirate Roberts Hi hoochie4me logout
Shop by Category Drugs 10,580 Cannabis 2,521 Clones 2 Concentrates 170 Cuttings 2 Edibles 119 Hash 404 Oils 48 Seeds 47 Synthetic 275 Topicals 9 Weed 1,109 Dissociatives 219 Ecstasy 1,019 Opioids 634 Other 532 Precursors 89 Prescription 2,418 Psychedelics 1,130 Stimulants 1,491 Apparel 345 Art 113 Biotic materials 2 Books 836 Collectibles 13 Computer equipment 71 Custom Orders 39 Digital goods 639 Drug paraphernalia 360 Electronics 99 Erotica 622 Fireworks 4 Food 10 Forgeries 71 Hardware 31 Herbs & Supplements 10 Home & Garden 9 Jewelry 94 Lab Supplies 54 Lotteries & games 95 Medical 45
sort by: bestselling Domestic only update
Budsupplies 5gr S5 Haze AAA quality seller: budsupplies(99) ships from: Germany B0.55 add to cart
NorthWestDirect OZ - 28g - MMJ - ANY STRAIN LISTED - NWD seller: NorthWestDirect(99) ships from: United States of America Current Strain: Sweet Skunk B1.24 add to cart
***** 7g PRIMO BUDS ***** Sour Diesel Pineapple Thai Purple Kush (Dark) Girl Scout Cookies Purple Kush seller: NorCalKing(100) ships from: United States of America B0.60 add to cart
LECKERMANN WEEKLY SKUNK IS BACK STRONG WEED 5 GRAM seller: Wehkampf(98) ships from: Belgium B0.30 add to cart
10G 1st (Manali) Morocco Rif Hash - FairTrade seller: atlas2012(100) ships from: Germany B0.75 add to cart
10G SamplePack 3/3/4 Morocco Rif Hash - FairTrade
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VIRGINIA FUSION CENTER VIRGINIA STATE POLICE Phone (804) 674-2196 Fax (804) 674-2983 Terrorism Hotline (877) 4VA-TIPS VFC@vsp.virginia.gov
Screenshot 4: Stimulants/Cocaine Listings
Silk Road anonymous market messages 0 orders 0 account B0.00 Search Go a few words from the Dread Pirate Roberts Hi hoochie4me logout
Shop by Category Drugs 10,579 Stimulants 1,490 4-MEC 31 6-APB 11 A-PVP 40 Caffeine 6 Cocaine 456 Crack 45 Ephedrine 19 Ethylphenidate 9 FAs 33 FMAs 22 FMCs 1 MDPPP 18 MDPV 72 Mephedrone 105 Meth 144 Pentedrone 29 Prescription 95 Speed 208 Cannabis 2,520 Dissociatives 219 Ecstasy 1,020 Opioids 634 Other 532 Precursors 89 Prescription 2,418 Psychedelics 1,130 Apparel 345 Art 113 Biotic materials 2 Books 836 Collectibles 13 Computer equipment 71 Custom Orders 39 Digital goods 639 Drug paraphernalia 360 Electronics 99 Erotica 622 Fireworks 4 Food 10
sort by: bestselling Domestic only update
1 GR. Pure Cocaine seller: FrankMatthews(96) ships from: Netherlands B1.08 add to cart
1 gram pure Cocaine seller: Sukey(98) ships from: Germany B1.33 add to cart
1 gram high quality cocaine seller: Lloydbrothers(97) ships from: United Kingdom B1.85 add to cart
.10g Flaky Shiny Fish-Scale Cocaine seller: bcpito(98) ships from: United States of America B0.10 add to cart
3.5 Grams (Ball) Pure Crystal Methamphetamine seller: chaleta(99) ships from: United States of America B2.07 add to cart
1 Gram of Cocaine
Note: All listings are in Bitcoins only
With the launch of the Silk Road website in 2011, use has increased. By some accounts, it is believed that the Silk Road conducts approximately $2,000,000 per month in transactions believed to net “The Dread Pirate Roberts” approximately $140,000 per month, all in Bitcoins.
While the Silk Road is believed to be the largest and most well-known of the hidden sites, there are others such as “Black Market Reloaded”, “Deep Web Weapons”, “Gun Guys Den”, and “Behind Bloodshot Eyes”, amongst others.
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VIRGINIA FUSION CENTER VIRGINIA STATE POLICE Phone (804) 674-2196 Fax (804) 674-2983 Terrorism Hotline (877) 4VA-TIPS VFC@vsp.virginia.gov
Conclusion The VFC believes this will be an escalating challenge for law enforcement as awareness in the general public increases about these services. The VFC will continue to analyze and attempt to identify the impact of the hidden internet and its services in Virginia. It is requested that any information related to the TOR, use of Bitcoins, and the Silk Road or other hidden internet sites that are seen as a result of investigations or official duties be forwarded to the Virginia Fusion Center at vfc@vsp.virginia.gov.
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NATIONAL SECURITY ARCHIVE
National Security Archive, Suite 701, Gelman Library, The George Washington University, 2130 H Street, NW, Washington, D.C., 20037, Phone: 202/994-7000, Fax: 202/994-7005, nsarchiv@gwu.edu