Bitcoin/crypto was coopted by feds and Intel agencies

[GnauzBookOfRhymes]

Russian Nationals Charged With Hacking One Cryptocurrency Exchange and Illicitly Operating Another

The Justice Department unsealed charges related to the 2011 hack of the cryptocurrency exchange Mt. Gox and the operation of the illicit cryptocurrency exchange BTC-e.

www.justice.gov

Been under surveillance since at least 2011.

 

[88m3]

is that why it failed

 

[ill]

Thread title is a bit misleading. It's been known for years the feds could track bitcoin. Indictment makes no mention of feds having an inside track.

 

[GnauzBookOfRhymes]

Thread title is a bit misleading. It's been known for years the feds could track bitcoin. Indictment makes no mention of feds having an inside track.

Sources and methods.

They knew about the original theft in 2011. Why would they wait more than 12 years to bring the hammer down?

 

[[Something Cool]]

Sources and methods.

They knew about the original theft in 2011. Why would they wait more than 12 years to bring the hammer down?

The Statute of Limitations is “tolled” for ongoing fraud. Basically, the initial act is tied to the last act in time. It’s an evidentiary fail safe. They probably had to sit on the case until case law caught up.

 

[ORDER_66]

 

[GnauzBookOfRhymes]

is that why it failed

The Statute of Limitations is “tolled” for ongoing fraud. Basically, the initial act is tied to the last act in time. It’s an evidentiary fail safe. They probably had to sit on the case until case law caught up.

I understand tolling. Wire fraud and money laundering have been illegal for decades. This was in 2011 not 1911.

 

[[Something Cool]]

I understand tolling. Wire fraud and money laundering have been illegal for decades. This was in 2011 not 1911.

Right, but it answers the initial question about why we hear about this now vs. then. This is a fraud allegation. So you can’t put the impetus on a party that is being defrauded to the Statute of Litigations which is solely based on their ability to discern the fraudulent activity in the first place.

 

[88m3]

Right, but it answers the initial question about why we hear about this now vs. then. This is a fraud allegation. So you can’t put the impetus on a party that is being defrauded to the Statute of Litigations which is solely based on their ability to discern the fraudulent activity in the first place.

they shouldn't have engaged in fraud

 

[re'up]

@GnauzBookOfRhymes

@88m3

They didn't sit on the case

The Justice DepartmentFBI/Homeland Security counter cyber crime teams in the last 7 years got really really good at tracing bitcoin, they used a technique to essentially "read" the wallets and routes of transactions, and ID the parties behind them

that's how they were able to do those clawbacks of like recent ransomware attacks, and also how they tracked the Alpha Bay founder, Alexander Cazares to Thailand.

I read a book about it last year, called "Tracers In The Dark" for anyone who is interested. My explanation leaves a lot of the tech stuff out, I would need to refresh my memory.

and also when you see dates like that in indictments, what it means usually, is the government has a cooperator who can point to the beginning of the conspiracy, like with drug cartel cases, if they are detailing an act like an execution in 2010, it's not because they were waiting, it's due to cooperators detailing that to the prosecutors.

 

[GnauzBookOfRhymes]

@GnauzBookOfRhymes

@88m3

They didn't sit on the case

The Justice DepartmentFBI/Homeland Security counter cyber crime teams in the last 7 years got really really good at tracing bitcoin, they used a technique to essentially "read" the wallets and routes of transactions, and ID the parties behind them

that's how they were able to do those clawbacks of like recent ransomware attacks, and also how they tracked the Alpha Bay founder, Alexander Cazares to Thailand.

I read a book about it last year, called "Tracers In The Dark" for anyone who is interested. My explanation leaves a lot of the tech stuff out, I would need to refresh my memory.

and also when you see dates like that in indictments, what it means usually, is the government has a cooperator who can point to the beginning of the conspiracy, like with drug cartel cases, if they are detailing an act like an execution in 2010, it's not because they were waiting, it's due to cooperators detailing that to the prosecutors.

Let's say all of the tech you just mentioned was available in 2012. You think the feds would've indicted? I don't think so if it meant having to disclose how they discovered the theft and then losing out on whatever insight they gained into who was using these networks and how. Just ordered the book. Thanks.

 

[re'up]

Let's say all of the tech you just mentioned was available in 2012. You think the feds would've indicted? I don't think so if it meant having to disclose how they discovered the theft and then losing out on whatever insight they gained into who was using these networks and how. Just ordered the book. Thanks.

It wasn't available, as far back as 2011 or 2012, but they started using the technique in Silk Road, the book had a long section on Ulbricht, but also the DEA agent and secret service agent who stole from Silk Road, they found that out through this method, as late as 2014

read in November 2022, so I would have to re read a few sections

The Alpha Bay investigation was one of the first, which began in 2014

now they do WANT people to know how good they are, and have become, to deter crime like this, as in it's not untraceable anymore

 

[ADevilYouKhow]

‘It’s not even good for money laundering’: ‘Black Swan’ author Nassim Taleb lashes out at Bitcoin and says it’s ‘transformed into a cult’

Nassim Taleb said crypto was less trustworthy than the Mafia.

fortune.com

@re'up @ogc163