Not really the same. If you had bitcoins stored with SR, presumably they are long gone.

I've never used the road, but rather I fear it was central to the high value of Bitcoins. I would love to be wrong but I can see my investment dropping and I don't have the guts to sell back into fiat.

I guess it depends on whether you believe cryptographic currencies have significant use cases outside of criminal enterprise.

If, on the other hand, you believe that the greatest value of bitcoins comes from their use by criminals, doesn't that make your investment in them a touch morally questionable?

Unless one believes the enterprise on SR is criminal but not immoral.

Dropped from 140 to 114 in just the few hours since the story broke.

I'm buying tomorrow, after the non-tech world has a chance to digest the morning papers.

Who is to say that isn't just a temporary panic reaction to the story and the long term viability of bitcoins is just fine?

Yep. Value of Bitcoin has tanked since this announcement.