Their chats took a turn when one of Ulbricht's employees was arrested in January, authorities say. They say Ulbricht worried that the employee would blow his cover and asked the undercover agent to have him killed.
Ulbricht said he had "never killed a man or had one killed before, but it is the right move in this case," an agent wrote in court papers.
The agent led Ulbricht to believe that the killing had been carried out, including sending staged photos of the employee being tortured, authorities say. On March 1, they say, Ulbricht wired $80,000 from an account in Australia to an account controlled by authorities.