I'm saying from DPR's point, was it that bad of a move? Face total failure or $500K payment (with no guarantee of not getting hassled later), versus a $150K payment that lasted a while?
Edit: To to clear, DPR could have well assumed it was the same party and figured this was one way to negotiate, instead of saying "ok, how about $200K instead of $500K"?
Why would you believe that someone has compromised thousands of your users without evidence? It's the sort of thing you'd naturally expect someone to lie about. Furthermore, if such were the case, it would be egregiously stupid of Ulbricht not to change the way he protects user identities, and there's no indication he did that either.
After all, if friendlychemist did in fact have information on thousands of drug dealers, he ought to be able to get a pretty good asking price from the government, so why would he even contact Ulbricht in this scenario?
FriendlyChemist was a vendor who somehow had a falling out, and decided to try and extort DPR who probably yanked his account. He said he would release all the information he kept on people he shipped drugs to, for the sole purpose of creating instability and FUD in the market by dropping identities all over the forums.
What DPR should have done is had his team of admins hellban the guy everytime he tried to spam the forums with names so he could waste his time however DPR never seemed to give a shit about the forum even though it was his brand being represented there.
This is why Max Vision spied on all his buyers/users because if they ever tried to extort him in the same manner he would promptly reveal that he's been inside their systems for months and knew exactly who they were.
Does the government normally pay out hundreds of thousands of dollars for that kind of info? If so, I may need to start thinking about a career change...
Edit: To to clear, DPR could have well assumed it was the same party and figured this was one way to negotiate, instead of saying "ok, how about $200K instead of $500K"?