1) I have cash and want drugs 2) I go on localbitcoins.com and buy bitcoins from an "independent miner" 3) I use the bitcoins to order drugs from Tor 4) The

1) I have cash and want drugs 2) I go on localbitcoins.com and buy bitcoins from an "independent miner" 3) I use the bitcoins to order drugs from Tor 4) The seller now has bitcoins, but would prefer cash 5) The seller goes on localbitcoins.com, pretends to be a small independent miner and sells their bitcoin for cash I'm happy (I got drugs for my cash), the seller is happy (they got cash for their drugs), localbitcoins.com is very happy (they made a cut on both bitcoin transactions). It's an excellent business model, but I don't understand how localbitcoins and it's ilk are able to stay online.