Jake Adelstein's "The Devil Takes Bitcoin" offers a riveting dive into the chaotic origins of cryptocurrency, exploring the dramatic collapse of Mt. Gox and the controversial rise of Silk Road, all while arguing that this tumultuous history unexpectedly paved the way for Bitcoin's current prominence.
Anyone familiar with Jake Adelstein's previous work, perhaps his acclaimed book The Last Yakuza or the compelling HBO series Tokyo Vice, likely approaches his latest literary offering with a specific expectation. You'd probably anticipate a no-holds-barred, gritty exposé of Bitcoin’s murky underbelly, brimming with tales of crime and corruption. And, to be fair, you wouldn't be far off the mark. Adelstein truly delivers a captivating narrative, unfolding as a memoir deeply entrenched in the downfall of what was once the world's largest Bitcoin exchange, Mt. Gox, alongside the intense crackdown on the notorious darknet marketplace, Silk Road. It’s a compelling look at the intricate dance between well-intentioned innovation, immense wealth, and a justice system often struggling to keep pace.
What truly elevates this book, however, isn't just the recounting of events, but the profound message woven through them. Adelstein puts forth a rather thought-provoking argument: that this "tragicomic" series of events was, in fact, the very engine that propelled Bitcoin to its current global standing. Think about it, he suggests it's a phenomenon not unlike how the adult entertainment industry, often quietly, played a crucial role in driving the early adoption and development of the internet itself. It’s a bold comparison, but one that makes you pause and consider.
Now, you might be wondering, how does crime fit into this picture? According to Adelstein, "Weirdly and unfortunately, one of the things that propelled the power of Bitcoin was crime." He goes on to explain that the early momentum of Bitcoin was largely fueled by platforms like Silk Road. People wanted a way to discreetly purchase drugs or other sensitive items they wouldn't dare order with a credit card. Mt. Gox and Bitcoin essentially became that forum, sparking an undeniable interest and driving its initial adoption. While it’s certainly "not relevant to what Bitcoin is anymore," as he points out, it's an incredibly "interesting way that it started." He even asserts, quite emphatically, "If you didn’t have the Silk Road, you wouldn’t have Bitcoin." It’s a powerful statement that forces us to confront an uncomfortable truth about innovation.
A Journey Through Early Crypto Chaos
While Adelstein crafts an undeniably engaging narrative, packed with corrupt federal agents, ambitious tech millionaires, illicit substances, and vast sums of money, the book could benefit from a bit of editing to accelerate its pace. It opens with an almost philosophical exploration of Bitcoin itself, branching into a broader discussion about the inherent evils that can stem from the "love of money." This reflective start, while interesting, might test the patience of some readers eager to jump straight into the action.
The first taste of genuine drama arrives with the prologue, a gripping scene where Japanese police arrive at the doorstep of Mark Karpeles, the former CEO of Mt. Gox, in 2015. Their suspicion? That he had been manipulating the financial records of his bankrupt cryptocurrency exchange. This immediate plunge into a high-stakes investigation sets a thrilling tone. However, just a couple of chapters later, Adelstein shifts gears quite dramatically. He embarks on his own personal quest to unmask the true identity of Satoshi Nakamoto, the enigmatic creator of Bitcoin. For many crypto veterans, this section might feel a bit like déjà vu.
Like countless others before him, Adelstein meticulously sifts through a roster of known and probable candidates, poring over old emails and Bitcoin discussion forums. And, as is almost always the case with such investigations, it yields no concrete answers, leaving the reader to ponder the ultimate purpose of this detour. It’s a well-trodden path that, while understandable for a journalist, doesn’t advance the core narrative as much as one might hope.
Dirty Cops, Darknet Markets, and Digital Cats
Around chapter four, Adelstein truly hits his stride, and this is where The Devil Takes Bitcoin becomes an unputdownable true-crime saga. He plunges into astonishing detail, charting the rise of Ross Ulbricht, the founder of Silk Road. Picture this: an American Eagle Scout and a staunch libertarian, Ulbricht started his "online Amazon" for drugs by cultivating magic mushrooms in a remote Texas cabin. His intentions, at least initially, seemed to be rooted in a belief in freedom and privacy, creating a platform for consensual transactions outside government oversight.
The story of Ulbricht is, for many, a familiar and tragic one, culminating in him receiving two consecutive life sentences plus an additional 40 years in prison. Yet, what many may not realize, and what Adelstein brilliantly exposes, is the disturbing subplot of how two corrupt U.S. federal agents managed to line their own pockets as the Silk Road drama unfolded. This is precisely the kind of governmental oversight and malfeasance that authorities likely hoped would remain buried. Adelstein, however, airs it all out, in classic true-crime fashion, meticulously detailing their illicit activities.
An Insider's Perspective
What's truly fascinating is Adelstein's unique position within these historical events. We discover that he was one of only two people present with Mt. Gox's Mark Karpeles on the very day of his arrest. Imagine being in that room! Adelstein even coached Karpeles on what to say, and crucially, what not to say, to his Japanese interrogators. This reveals a chilling aspect of Japan’s justice system, which, despite its polished facade, operates with a conviction rate hovering around 99%, often exhibiting a rather loose interpretation of the "innocent until proven guilty" principle.
And then, there’s the delightfully absurd detail about Karpeles' cats. Despite being severely allergic, Adelstein was entrusted with the task of caring for Karpeles' two feline companions during the tumultuous period of his arrest and detention. It’s a humanizing, almost comical touch in an otherwise high-stakes drama.
This personal involvement leads directly into what many consider the absolute highlight of the book. Adelstein, alongside fellow reporter Nathalie Kyoko Stucky, embarked on a determined quest to unmask the true hacker responsible for the staggering 800,000 missing Bitcoin from Mt. Gox. Sharing beers in a Japanese bar with IRS Special Agent Tigran Gambaryan, affectionately known as "The Bitcoin Wizard," the trio collaboratively devised a plan. This audacious endeavor eventually led them to identify the real culprit, providing a much-needed sense of closure and an exhilarating climax to the narrative.
The Evolution of a Story
For those who might have encountered J’ai vendu mon âme en Bitcoin (I sold my soul for Bitcoin) and understand French, you’ll find striking parallels between that earlier work and The Devil Takes Bitcoin. This isn’t a coincidence; Adelstein actually released a preliminary version of this book in French back in 2019, just a few days before Mark Karpeles' trial commenced.
So, why the new English version? Adelstein himself sheds light on this. The original French edition, he admits, had a "very unsatisfying ending" primarily because the story was still unfolding at the time of its publication. Not only that, but he hadn't yet secured permission from Tigran Gambaryan to use his name and reveal his crucial role, as Gambaryan was still actively working for the IRS. "So the level of detail that I could put in there was extremely limited," he explains. The new edition, therefore, offers a far more complete and detailed account, enriching the narrative with previously inaccessible information.
Is 'The Devil Takes Bitcoin' Worth Your Time?
For the vast majority of readers who aren't fluent in French and aren't Bitcoin OGs who lived through these legendary, often bewildering, early days, The Devil Takes Bitcoin is an absolutely worthwhile dive into some of the wildest moments in Bitcoin’s formative history. It's not just a collection of facts; it's a journey through the culture, the personalities, and the sheer audacity that defined the early crypto scene.
Perhaps most significantly, for the author of the original review, reading this book fostered a stronger sense of confidence in Bitcoin’s ultimate legitimacy. Despite its murky past, the inevitable "collapses" that have plagued its journey, and the constant media scrutiny, Bitcoin, in his view, is unequivocally changing the world for the better.
Adelstein beautifully summarizes this evolution: "I think of Mt. Gox now as a tragicomic prelude to what came next, and how it ultimately changed the economy, much like how a bad dinner date can eventually lead to a happy marriage — just not in the way you expected." He adds that "This is the story with a surprisingly happy ending for some people." He points out that Karpeles avoids a life sentence, getting out of prison, which is certainly a positive outcome for him. And Satoshi Nakamoto's identity remains shielded, which Adelstein believes is "a good thing for him."
Even Adelstein’s wife, who famously took two years to finish his previous book Tokyo Noir, apparently devoured this one in a mere three to four days. "She's like 'yeah, it wasn't boring and nobody died,'" Adelstein humorously recounts. High praise indeed, especially when compared to a crime thriller!
FAQ
Q1: What is the main argument Jake Adelstein makes in 'The Devil Takes Bitcoin'? A1: Adelstein argues that the "tragicomic" events surrounding the collapse of Mt. Gox and the crackdown on Silk Road, including the criminal activities, paradoxically played a crucial role in propelling Bitcoin's early adoption and development, ultimately leading to its current prominence.
Q2: Who are the key figures discussed in the book? A2: The book heavily features Mark Karpeles, the former CEO of Mt. Gox; Ross Ulbricht, the founder of Silk Road; and Jake Adelstein himself, often in an active, investigative role. IRS Special Agent Tigran Gambaryan also plays a significant part in the Mt. Gox investigation.
Q3: Is the book only for "crypto natives" or early Bitcoin adopters? A3: While crypto natives might recognize some of the history, the book is highly recommended for a broader audience. Adelstein's compelling narrative style makes it accessible and engaging for anyone interested in true crime, technological history, or the wild origins of digital currency.
Conclusion
So there you have it, a journey into the heart of early Bitcoin’s tumultuous beginnings, as told through Jake Adelstein’s uniquely placed lens. The Devil Takes Bitcoin is far more than just a historical recount of Mt. Gox’s dramatic implosion or Silk Road’s controversial reign. It’s a human story, filled with ambition, corruption, technological marvel, and the unexpected ways in which chaotic events can shape the future. Adelstein doesn't just present facts; he invites you to understand the messy, often uncomfortable, origins of a technology that continues to redefine our world. If you're looking for a book that reads like a gripping true-crime novel but leaves you with a deeper appreciation for the resilience and evolution of Bitcoin, then this one is definitely worth picking up.
