Federal agents arrested for alleged bitcoin theft in Silk Road

Two federal agents have been arrested on fraud charges for allegedly misappropriating funds denominated in bitcoin while on assignment in the illegal online black market Silk Road case.

The U.S. Department of Justice (DOJ) has alleged that Shaun Bridges, special agent with the US Secret Service (USSS), "diverted" more than $800,000 in bitcoin to his personal account without permission during the investigation.

Similarly, Drug Enforcement Agency (DEA) agent Carl Mark Force IV has reportedly "solicited and received" bitcoin as part of the investigation into Silk Road, using "fake online personas" to "steal from the government and targets of the investigation".

Both the agents have been charged with money laundering and wire fraud. The full complaint incorporates the statement of Tigran Gambaryan, special agent with the criminal investigation division of the Internal Revenue Service's (IRS) Cyber Crimes Unit Liason.

"Force and Bridges abused their positions as federal agents and engaged in a scheme to defraud a variety of third-parties, the public and the government, all for their own financial enrichment", Gambaryan said.