Ransom Paid In Bitcoin

[bryant.coleman]

Lots of things are getting used by criminals. Would you believe criminals use guns? They even use cars. Some of them even eat bread.

Exactly. Some of the new clones of cryptolocker are using Moneypak and QIWI wallet to accept ransom payments, and for money laundering. Earlier they were using options such as Liberty Reserve. If we ban Bitcoin claiming that it is being misused by the criminals, then they'll just discover a new method, which can't be banned.

[AT101ET]

This is one of the downsides in BTC. Coins are quite hard to chase and to match up to the owners meaning people can often get away with doing anything. The hackers could easily use a mixer to 'hide' the 'tainted' coins and then use a few exchanges and gambling sites to clean the coins. Eventually there'd be no concrete evidence who the extortionists are...

[manselr]

This is one of the downsides in BTC. Coins are quite hard to chase and to match up to the owners meaning people can often get away with doing anything. The hackers could easily use a mixer to 'hide' the 'tainted' coins and then use a few exchanges and gambling sites to clean the coins. Eventually there'd be no concrete evidence who the extortionists are...

Yeah it would be pretty much mission impossible to guess the actual criminals after a couple of mixing. You could put the wrong people in jail so it's pointless. Actually after just putting the coins inside a exchange and moving them back it's pretty much impossible, it would a lot of people

[bryant.coleman]

Yeah it would be pretty much mission impossible to guess the actual criminals after a couple of mixing. You could put the wrong people in jail so it's pointless. Actually after just putting the coins inside a exchange and moving them back it's pretty much impossible, it would a lot of people

I remember the discussion I had with a merchant, who was looking forward to accepting Bitcoins as a mode of payment. He asked me how he could identify the "tainted" coins, and thereby reject the payment. Unfortunately, I didn't knew the answer. I don't know what happened in the end. Probably he shelved the idea, fearing that he will face legal action as a result of getting these tainted coins. 

[Hazir]

Yeah it would be pretty much mission impossible to guess the actual criminals after a couple of mixing. You could put the wrong people in jail so it's pointless. Actually after just putting the coins inside a exchange and moving them back it's pretty much impossible, it would a lot of people

I remember the discussion I had with a merchant, who was looking forward to accepting Bitcoins as a mode of payment. He asked me how he could identify the "tainted" coins, and thereby reject the payment. Unfortunately, I didn't knew the answer. I don't know what happened in the end. Probably he shelved the idea, fearing that he will face legal action as a result of getting these tainted coins. 

By tainted coins you refer to coins obtained by any frauds, thievery and from black markets? And you were right there is no way to identify these kind of money, but isn't it the same way with normal FIAT?
How can you be sure that money you are receiving are not obtained by fraudulent methods? Yes! You can't be sure! So rejecting bitcoin acceptance just because there is possibility of 'tainted coin's is pretty dumb imo.

[manselr]

Yeah it would be pretty much mission impossible to guess the actual criminals after a couple of mixing. You could put the wrong people in jail so it's pointless. Actually after just putting the coins inside a exchange and moving them back it's pretty much impossible, it would a lot of people

I remember the discussion I had with a merchant, who was looking forward to accepting Bitcoins as a mode of payment. He asked me how he could identify the "tainted" coins, and thereby reject the payment. Unfortunately, I didn't knew the answer. I don't know what happened in the end. Probably he shelved the idea, fearing that he will face legal action as a result of getting these tainted coins. 

By tainted coins you refer to coins obtained by any frauds, thievery and from black markets? And you were right there is no way to identify these kind of money, but isn't it the same way with normal FIAT?
How can you be sure that money you are receiving are not obtained by fraudulent methods? Yes! You can't be sure! So rejecting bitcoin acceptance just because there is possibility of 'tainted coin's is pretty dumb imo.

Yeah, ideally, there shouldn't be "tainted" coins, because it breaks fungibility. The origin of the Bitcoins shouldn't matter, otherwise it would be a big mess, but I can understand the concern. This is the problem of a public ledger.

[countryfree]

I'd like to know how the criminals got away with the ransom. Did they use a mixer, or what? Even if they did, it should be possible to find, at least, the IP address they used in the transaction to the mixer.

[Amph]

I'd like to know how the criminals got away with the ransom. Did they use a mixer, or what? Even if they did, it should be possible to find, at least, the IP address they used in the transaction to the mixer.

IP can be masked pretty easily, with plenty of tools, so it's a bit pointless to know it, they can even do it via mobile and attach their phone to a wifi with some sort of a proxy, then change location

you don't even need a mixer in that case, they may force you to split the stolen sum into multiple addresses

[Nikinger]

It's possible in some stores in some countries to register an USB wifi device to a random address.
When done, the criminal could go on with his live CD launched MAC altered laptop and lock in himself in the public toilet of a large train station and start his ransom over additional anonymous VPN protection.
Selling bitcoins is easy for criminals too, mixer then localbitcoins.
This is how a criminal can get away with his ransom and this is one valid point how bitcoin gets his reputation straight into the hell.