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You are here: Home / Bitcoin Industry News / Silk Road Founder Ross Ulbricht, Who Proved the Case for Bitcoin, Can Do So for NFTs

December 5, 2021

Silk Road Founder Ross Ulbricht, Who Proved the Case for Bitcoin, Can Do So for NFTs

Ross Ulbricht, the founder of Silk Road online marketplace that hosted everything from children’s books to ketamine, is selling a non-fungible token (NFT) with the proceeds going to his legal fund and children of incarcerated parents.

Founded in 2011, Silk Road is often cited as the first true “use case” of bitcoin. It proved that fully decentralized digital money could be used reliably and without being censored. The marketplace became something of a media curiosity – drugs were being sold quite openly – and was shut down by the feds.

This article is excerpted from The Node, CoinDesk’s daily roundup of the most pivotal stories in blockchain and crypto news. You can subscribe to get the full newsletter here.

Ulbricht is now serving two consecutive life sentences, plus 40 years, without the option of parole. He’s risen to a near-mythic status within the crypto community for putting his life on the line to make the libertarian case that individuals should be able to decide who to interact with and what to buy – a similar aim of the Bitcoin network.

Now, his latest auction might demonstrate the same utility for NFTs. At heart, NFTs are a way to prove the uniqueness of particular digital items. They are mostly used for in-game items and art, but have applicability across the internet. Like with bitcoin, the idea is that anyone can use, own or trade these assets.

See also: Crypto: The Gift That Keeps On Giving | The Node

A jaw-dropping amount of wealth has been generated in NFT markets, which is quickly forming its own identity apart from the general cryptocurrency economy. They have permeated into mainstream culture – with celebrities and corporations alike hawking their projects – as both a tool for freedom and something of a joke.

Charitable efforts, too, have caught on. On the 20th anniversary of 9/11, the New Yorker magazine issued an NFT series with proceeds going to victims. Given the harrowing cause, I look at that auction as a sea change; NFTs are serious, and they are likely here to stay. New York’s toniest magazine wouldn’t besmirch the legacy of survivors with a fad.

Ulbricht’s series has similar potential by showing that this is a powerful tool even for causes you may personally object to. That’s important. For whatever else crypto may be now or may become, it’s vital to have a digital form of money you can use like cash. (Visa and Mastercard have made online shopping a breeze, but they are the ultimate gatekeepers of what you can buy.)

Auction of the Ross Ulbricht Genesis Collection, which compiles original artwork, political statements, poetry and animations produced by digital artist Levitate into a single token, began yesterday at an Art Basel event in Miami and will run until Dec. 8. The token lives on the Ethereum network, and the art can be viewed and purchased on the curated NFT marketplace SuperRare.

Ulbricht is no doubt a complicated and controversial figure. He was convicted of money laundering, computer hacking and conspiracy to traffic narcotics. There’s a strong case that the criminal justice system has failed him – laying out an unconscionable sentence in a misguided attempt to make an example out of him – and thousands of other people. According to the U.S. Sentencing Commission, the average sentence for a drug trafficker is 77 months. He’s not a hero, but he deserves justice.

At this point, his mother Lynn Ulbricht, and his defense organization have basically run out of legal options. In his own words, “Decades of incarceration stretch out in front of me.” He found God, found purpose and is now an advocate for the countless others done wrong by the U.S. penal system.

See also: No Visits, No Parole: Ross Ulbricht Is More Alone Than Ever During COVID-19

“As I face that future, my eventual old age and death in this cage, I find myself looking for meaning and purpose. Why am I here? What good can I do with the time I have left and from where I am? I hope that helping my fellow prisoners through my art is one way,” he wrote in a Medium post announcing the NFT launch.

The series has already drawn a tremendous amount of attention and support, though some uppity bitcoin-only crypto investors – once his most vocal and generous supporters – have criticized the project. It doesn’t matter what they think. Their worldview is already irrelevant, if they cannot see how closely most of crypto advances their cause toward credibly neutral platforms.

Current bidding stands above 250 ETH, the native currency of the Ethereum blockchain, worth about $1.1 million. That money may not free Ross, but it could go to good use. Money should be free, and (most) people, too.

UPDATE (05:20 UTC – 12/5/2021): Clarifies language around digital artist Levitate’s contribution to the project.

Author: Daniel Kuhn

Filed Under: Bitcoin Industry News

Expert Witness

Ty Sagalow head shotTy Sagalow's unique background in legal, underwriting, policy drafting and claims – and his designation as a “qualified insurance expert” by the United States District Court for the Southern District of California – offers attorneys an unparalleled resource in D&O, E&O and Cyber insurance coverage disputes. He was also named "Most Helpful Expert" in a recent $8.7M coverage decision.

Mr. Sagalow served as Chief Underwriting Officer and General Counsel for AIG Executive Liability (formerly National Union Fire Insurance Company of Pittsburgh, PA), the world’s largest carrier of Directors and Officers Liability and Professional Liability Insurance. As General Counsel, Mr. Sagalow personally wrote or led teams that wrote all the D&O policies and many of the professional liability policies that AIG produced between 1988 and 2000 – policies which continue to serve as the foundational wording for the D&O and professional liability policies in the market today. As AIG Executive Liability’s Chief Underwriting Officer, Mr. Sagalow was charged with all underwriting interpretations and decisions for AIG D&O/E&O policies. In 2009, Mr. Sagalow headed up the team that rewrote all D&O policies for Zurich North America.

Ty is a cum laude graduate of Georgetown University Law Center and holds a LLM from New York University School of Law.

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Combining his talents as a network security insurance expert and an insurance product development expert, Ty Sagalow is the leading expert on the unique risk and insurance needs of the bitcoin industry.

With the successful sale of BitSecure(tm), the first bitcoin theft insurance policy in February of 2015, he is the first to create a sustainable, robust insurance policy to cover the theft of bitcoins and other virtual currency backed by an A-Rated, global “top 10” Property and Casualty insurance company.

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Innovation Insurance Group is an insurance consulting firm and insurance brokerage founded by 30-year insurance executive, Ty R. Sagalow, former Chief Underwriting Officer, General Counsel and Chief Innovation Officer at AIG, and former Chief Innovation Officer at Zurich, NA and Tower Group. IIG focuses on three core practice groups: product development, expert witness services (primarily in the Management and Professional Liability areas), and bitcoin industry brokerage services.

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