At a bustling cryptocurrency convention in Austin back in May, amidst a sea of eager entrepreneurs seeking investor funds, one figure stood out among the rest. Blake Emerson Benthall, a clean-shaven 5-foot-4 individual sporting a gray tee with his start-up’s logo, presented himself as a unique case. Unlike the others, he could boast of leading a multimillion-dollar criminal drug enterprise.
In the convention’s “Deal Flow Zone,” Mr. Benthall engaged in conversations with potential investors, showcasing his pitch. Clicking through a presentation on his laptop, he shared his experience of overseeing Silk Road 2.0. This infamous online marketplace saw 1.7 million anonymous customers using Bitcoin to purchase illegal substances like methamphetamine and heroin. He recounted his arrest by the F.B.I. and the subsequent years spent under federal government supervision.
Now, having served his sentence and completed his probation, the 36-year-old Mr. Benthall is now focused on a new venture. His two-year-old start-up, Fathom(x), aims to provide businesses and government agencies with software designed to monitor digital currency transactions and ensure compliance with the law.
While acknowledging the irony of an ex-convict advising companies on compliance, Mr. Benthall believes his unique background can help expose fraudulent activities before they escalate, referencing incidents like the downfall of FTX, a cryptocurrency exchange now defunct with its founder imprisoned.
His journey to legitimacy has been marked by surprising and sometimes bewildering turns. From a Christian upbringing and home-schooling to orchestrating a platform that raked in $8 million monthly from illicit drug sales, Mr. Benthall’s transformation involved nearly a decade of covert collaboration with the government to combat cryptocurrency-related abuses.
