[1]https://openwatch.net/i/200/anonymous-web-host-freedom-hosting-owner
   -arrested

Owner arrested in Ireland, FBI makes extradition request, malicious
JavaScript discovered on a number of important hidden services.

What happened?

   Eric Eoin Marques, the 28 year old owner and operator of the Tor-based
   internet host 'Freedom Hosting' has been arrested in Ireland and
   charged with distributing and promoting child pornography on the
   internet,[2]reportsthe Independent.
   Since the arrest, internet users[3]have reportednoticing[4]malicious
   JavaScriptdesigned to compromise their identities inserted into pages
   hosted by Freedom Hosting, including the 'Tormail' service, as well as
   a number of pedophile messageboards.

Why?

   'Freedom Hosting' provides hosting for anonymous 'hidden services' on
   the Tor network. These services can range from everything from
   anonymous email and library services, to online marketplaces for drug
   distribution and the production and exchange of child pornography.
   As this is part of an ongoing FBI investigation, there is no conclusive
   evidence that the injection of this JavaScript is the result of a
   government operation, however, this does fall under a known[5]pattern
   of FBI behaviorrelated to child porn sting operations. It is possible
   that the attack, which delivers a weaponized exploit to Firefox users
   running Windows systems, is the work of non-government cyber criminals,
   although the timing of the arrest and the appearance of this code on a
   number of hidden services hosted by Freedom Hosting does seem to imply
   a government operation.
   The execution of malicious JavaScript inside the Tor Browser Bundle,
   perhaps the most commonly used Tor client, comes as a surprise to many
   users. Previously, the browser disabled JavaScript execution by default
   for security purposes, however this change was recently reverted by
   developers in order to make the product more useful for average
   internet users. As a result, however, the applications has become
   vastly more vulnerable to attacks such as this.

What's going to happen next?

   Although it is difficult to gauge the size of the anonymous internet,
   Freedom Hosting did seem to be perhaps the largest anonymous web host,
   and its compromise will have serious implications for the future of Tor
   hidden services.
   We expect there will be a deeper technical analysis of the malware in
   the coming days as security researchers examine it in greater detail.
   Since the attack was designed at Firefox for Windows, which the Tor
   Browser Bundle is based upon, it seems likely that this is not a random
   occurance, and that the malware is designed specifically designed to
   compromise the identities of anonymous internet users. Although this
   would be a victory for the FBI against child pornographers who use the
   Tor network, it could also mean a serious security breach for
   international activists and internet users living in repressive states
   who use the services to practice online free speech.
   OpenWatch has been in the early stages of designing a new alternative
   to Freedom Hosting, called[6]OnionCloud, to allow anonymous Heroku-like
   application hosting. Developers interested in this idea and other
   OpenWatch technologies are invited to join the discussion by joining
   the openwatch-dev mailing list by sending an email to
   [7]openwatch-dev+subscribe@googlegroups.com

References

   1. https://openwatch.net/i/200/anonymous-web-host-freedom-hosting-owner-arrested
   2. http://www.independent.ie/irish-news/courts/fbi-bids-to-extradite-largest-childporn-dealer-on-planet-29469402.html
   3. http://www.reddit.com/r/onions/comments/1jmrta/founder_of_the_freedom_hosting_arrested_held/
   4. http://pastebin.com/pmGEj9bV
   5. http://gizmodo.com/why-the-fbi-ran-a-child-porn-site-for-two-whole-weeks-510247728
   6. https://github.com/Miserlou/OnionCloud
   7. mailto:openwatch-dev+subscribe@googlegroups.com