Two Australian law enforcement agencies are crowing about their arrest of a man who attempted to import illicit drugs into Australia using the online drug marketplace Silk Road. In a press release brought to our attention by CSO, the Australian Federal Police (AFP) and the Australian Customs and Border Protection Service warn Australians that users of Silk Road and services like it "will not always remain anonymous and when caught, they will be prosecuted."

Silk Road uses two cryptographic technologies to shield itself from law enforcement scrutiny. The site is only available on Tor, the cryptographic network that obfuscates the source and destination of Internet traffic. And payments are only accepted using Bitcoin, a cryptocurrency whose peer-to-peer design makes it difficult for governments to regulate or monitor.

“Criminals are attempting to exploit the international mail system through online networks, but the recent arrest demonstrates that we are one step ahead of them," said AFP official Peter Sykora. “The AFP will continue to identify, investigate and prosecute individuals or groups importing narcotics into Australia, including via illicit e-commerce platforms such as Silk Road."

The press release doesn't explain how Australian officials caught the suspect, who "was charged with 10 offenses relating to the importation, trafficking and possession of narcotics and prohibited weapons." While the government tries to give the impression that it is monitoring transactions on Silk Road itself, it's possible it caught the suspect through more traditional means.

The incident highlights Bitcoin's role as the currency of choice for activities at the fringes of society. Last month we noted that in addition to its use in drug markets, Bitcoin has also proven a popular currency for pornography and gambling.