[2016-03-30] Homeland Security Bitcoin Task Force Is Very Real

[LiteCoinGuy]

Homeland Security Bitcoin Task Force Is Very Real

For quite some time now, there have been rumors circulating on the Internet about so-called Bitcoin “task forces” which are created to track down illegal or suspicious activities on the blockchain. A leaked screenshot of a recent arrest made in California shows how these task forces are very real. Although it is not difficult to track the origin and destination of just about any bitcoin transaction on the blockchain, law enforcement agencies are stepping up their game by the look of things.

http://themerkle.com/homeland-security-bitcoin-task-force-is-very-real/

[odolvlobo]

There is no leaked screenshot. It is an affidavit filed as part of an indictment. You can read it here on this government website: https://www.justice.gov/usao-edca/file/836576/download.

Furthermore, the affidavit does not relate at all to "illegal or suspicious activities on the blockchain". The evidence was found primarily by looking at records found on Silk Road servers.

As for the task force, it seems fairly mundane:

I am part of a digital currency task force focused on identifying the use of digital currency to launder the proceeds of criminal activity. As part of this task force, I have been involved in several investigations into unlicensed digital currency exchangers and narcotics distributors on the darkweb who use digital currency to receive payment for the sale of narcotics.

[Keyser Soze]

Apparently it looks suspicious to buy several cars, including a Mercedes S63 AMG ($143k+), and afford a house with a girlfriend plus 3 kids without having a job for 6+ years.  Combined with the Silk Road data, it seems their investigation is pretty straight forward.