Bitcoin is not a safe haven for criminals

[glendall]

It is how we use bitcoin. If we have a large amount of bitcoin, we need to know how to spend our bitcoin and not spend a large amount to make a transaction. That can get attention from the local banks, investigators or some regulators to check your account.

As long as we can use bitcoin as it should be, we can stay safe and won't attract their attention. But if there are people who use bitcoin in large quantities, surely they have considered what they should do.

well that's true, local banks can be very sensitive if there are funds that don't come in as usual, sometimes we need to arrange withdrawals so that local banks are not suspicious of funds that go into our accounts
or we will deal with the bank for interrogation

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[TheNineClub]

It's not a safe haven, but it's still susceptible to a portion of those criminals who either fly below the radar and never get caught. The pair mentioned took a bite they couldn't chew, but there are tons of low-key thievery, scamming, and likewise, that just never gets resolved. In some cases, some of the perpetrators are known. And when you add all of them up, it's still a hefty number. But crypto is not the exception here, it's the norm as the same things happen outside of crypto.

[bitzizzix]

It is how we use bitcoin. If we have a large amount of bitcoin, we need to know how to spend our bitcoin and not spend a large amount to make a transaction. That can get attention from the local banks, investigators or some regulators to check your account.

As long as we can use bitcoin as it should be, we can stay safe and won't attract their attention. But if there are people who use bitcoin in large quantities, surely they have considered what they should do.

well that's true, local banks can be very sensitive if there are funds that don't come in as usual, sometimes we need to arrange withdrawals so that local banks are not suspicious of funds that go into our accounts
or we will deal with the bank for interrogation

The question is if we have a very large amount of bitcoin and it is not the result of theft or fraud, why should we do it like that?
So as long as it's the result of a good and right way and not from theft or fraud, why do you have to make withdrawals many times because making total withdrawals is also not a problem. because you have evidence and your answer doesn't match the OP's and that's tantamount to giving the thief a safe passage.

[erep]

The question is if we have a very large amount of bitcoin and it is not the result of theft or fraud, why should we do it like that?

Countries that have legalized cryptocurrencies as digital asset commodities will not have a problem with this, but various countries that are not friendly with cryptocurrencies will question it because they are suspected of making deposits from cryptocurrency activities, the solution is to make trusted P2P withdrawal transactions to prevent deposit constraints to the central bank in some countries that directly prohibit cryptocurrency activities.

[Kakmakr]

It only takes one slip up for the authorities to pick up the scent and then they are like a blood hound on a blood trail. You can use 20 Mixer services and then you push some coins through an exchange and the "amount" will raise the red flag. The exchanges have all your information and they report suspicious transactions to the authorities.

The authorities then look at your financial history to see if you have or had the ability to gather that kind of money (inheritance / Job / large sales like property / Bank statements etc.) and if they cannot find a reason why you suddenly acquired that kind of income, they simply arrest you on suspicion of a crime and then they use a search warrant to look for that reason. 

[doomloop]

It's great that criminals can't hide behind the network of decentralized computers. It's comforting to see that cyber criminals are getting caught and thrown inside prison. The cyber criminals must understand that they can't run forever and enforcement agencies have tools to track them down.

I would recommend to read this article to get better insight on how DOJ had tracked them down.

This is a really good way to prove it to critics who keeps lying about Bitcoin that everything that they have been saying is totally a lie. Some critics has always been saying that Bitcoin is being used by scammers, because it makes them anonymous and that they won’t be caught, and they’re always using this as an excuse as a way for them to push for the ban of Bitcoin. So, I believe that with news like this that it is crystal clear now that Bitcoin cannot be a tool for such thing. So, those of them carrying such news can now know that all they have been saying all this while is totally wrong.

[Sanitough]

It's great that criminals can't hide behind the network of decentralized computers. It's comforting to see that cyber criminals are getting caught and thrown inside prison. The cyber criminals must understand that they can't run forever and enforcement agencies have tools to track them down.

I would recommend to read this article to get better insight on how DOJ had tracked them down.

This is a really good way to prove it to critics who keeps lying about Bitcoin that everything that they have been saying is totally a lie. Some critics has always been saying that Bitcoin is being used by scammers, because it makes them anonymous and that they won’t be caught, and they’re always using this as an excuse as a way for them to push for the ban of Bitcoin. So, I believe that with news like this that it is crystal clear now that Bitcoin cannot be a tool for such thing. So, those of them carrying such news can now know that all they have been saying all this while is totally wrong.

If those people who made critics against bitcoin know exactly that there is more transparency in bitcoin compared to fiat, then will never stick to their own belief that bitcoin is very useful for criminals. In fact, there are more cases in fiat compared to bitcoin about money laundering and fraudulence, and most of them end up unresolved. But with bitcoin, no matter how good you are in scamming, this decentralized but transparent system will never make you succeed in the long run as you will still be traced and identified after series of investigations.

[adzino]

Recently, I went through the article about the biggest cryptocurrency fraud in history executed by a married couple.  Ilya Lichtenstein and Heather Morgan, husband, and wife, have been tracked down by the FBI for laundering 119,754 bitcoins from Bitfinex five years ago. After many attempts to rinse the money through chain hopping on numerous anonymity enhanced cryptocurrencies like monero. The FBI was able to apprehend them.

I want to know, what else does the government want to regulate the cryptocurrency blockchain for if the FBI can perform such a rigorous search on all the virtual accounts that have been created online by the couple? And found the private key linked to the wallet that received the funds, and they recovered over $3.5 billion and recorded it as the biggest seizure in the cryptocurrency niche.

“Criminals always leave tracks, and today’s case is a reminder that the FBI has the tools to follow the digital trail, wherever it may lead,” said FBI Deputy Director Paul M. Abbate.

I think the transaction the Government cannot track in the block-chain technology has not be made. FBI claim that they will endeavor to trace any fraudulent activity in the cryptocurreny network through their 21st century investigative technique. (I don't know what they mean by that)

we're able to uncover the source of even the most sophisticated schemes and bring justice to those who try to exploit the security of our financial infrastructure.

-snip-

Read:
https://www.justice.gov/opa/pr/two-arrested-alleged-conspiracy-launder-45-billion-stolen-cryptocurrency

They were stupid enough to send their ID and verify themselves on a centralized exchange and send coins to the exchange wallet where the exchange was able to link the transactions to the stolen wallet. Yes, bitcoin transactions can be traced to you, but they won't know who YOU are unless they somehow manage to link you with the address (KYC, sending documents or interacting with wallets that has been confirmed to be associated with you). They probably would have never been caught if they knew how to stay under the radar.

[carlfebz2]

It's not a safe haven, but it's still susceptible to a portion of those criminals who either fly below the radar and never get caught. The pair mentioned took a bite they couldn't chew, but there are tons of low-key thievery, scamming, and likewise, that just never gets resolved. In some cases, some of the perpetrators are known. And when you add all of them up, it's still a hefty number. But crypto is not the exception here, it's the norm as the same things happen outside of crypto.

When we do tend to count on cases in terms of those resolved cases compared to those who are still pending or not been resolved then we do see the difference in numbers which simply means that its quite evident

that it would really be still a safe haven because as long those hackers dont touch up centralized platforms or services on which they could mix those coins out then there's no way that you could really trace them up

but its true that everything couldnt really be anonymous if you are really that serious on tracing those things.

[dothebeats]

It's amazing how the Feds can get to the bottom of all these crypto heists and frauds yet cannot solve large-scale money laundering done on USD. It's as if they're choosing which currencies will they work on and scream to the world that they're the best at what they do. Anyway, with the recent bust on the $3.5B heist, this will make criminals have second thoughts on whether they should use crypto or not to launder their money. Knowing that the FBI has tools to track them, I doubt they will still prefer crypto after all.

[batang_bitcoin]

Anyway, with the recent bust on the $3.5B heist, this will make criminals have second thoughts on whether they should use crypto or not to launder their money. Knowing that the FBI has tools to track them, I doubt they will still prefer crypto after all.

I think that they'll still use it. With the bunch of scams and spams that's happening in the internet, they still prefer crypto. But maybe, those that are looking at this arrest. They might prefer to use privacy coins.

i've read a lot of articles about this couple,i bet $1000 they're just the "fall guys",i mean you're saying that you have all the knowledge to single handled hack a entire exchange and you let your private keys on a online cloud service using your REAL EMAIL address connected to other addresses used to launder the money? something just doesn't seem right...

I've never thought of this but it's possible. I remember some heists that has happened with fiat and bank fraud transactions, there's always the sacrifice if it's a large scale.

[stepwilli]

If the government is able to catch scammers who are making use of cryptocurrency Bitcoin, then there is no excuse for them to be saying that cryptocurrency can be a tool for funding terrorism or any illicit activity. By being able to capture those who are involved in this activity, then there is every possibility that the government will also be able to capture others who are involved in making use of crypto currency to fund any illicit activities. 

We have seen so many events like this take place, where the government were able to easily catch perpetrators involved in it, so that shows us that anyone who is making use of Bitcoin can be traced by the government no matter where and How they are using it.

[goldkingcoiner]

Bitcoin has never been a safe haven. It was never supposed to be a safe haven or "anonymous". It was supposed to be decentralised, public and out of control of the governments or anyone elses hands. That makes it FAIR. And it does not get fairer than that.

Does that mean there are no safe havens? There are. Monero is a very safe haven, for example. But then again, Monero is not and will never be what Bitcoin is and what Bitcoin stands for. Freedom for the people and a sanction against the corrupt and broken fiat monetary system.

Criminals will never be safe. There will always be ways that will get them caught, sooner or later. Its the criminals like bankers and fund managers who use legal methods to screw everyone else over that we want to eradicate.

[DoublerHunter]

If the government is able to catch scammers who are making use of cryptocurrency Bitcoin, then there is no excuse for them to be saying that cryptocurrency can be a tool for funding terrorism or any illicit activity. By being able to capture those who are involved in this activity, then there is every possibility that the government will also be able to capture others who are involved in making use of crypto currency to fund any illicit activities. 

We have seen so many events like this take place, where the government were able to easily catch perpetrators involved in it, so that shows us that anyone who is making use of Bitcoin can be traced by the government no matter where and How they are using it.

^ We have many agencies now that studying blockchain and how to trace wallet addresses that are linked to any exchange platform where the BTC scammed landed. It is publicly seen to anyone per transaction so it is possible hackers can be tracked. We have heard different hacks that have been solved, also terrorism will probably easiest job for those who know how to solve and trace this kind of crime. I believe that nothing is anonymous in BTC but still you can protect your privacy.

[Japinat]

Bitcoin has never been a safe haven. It was never supposed to be a safe haven or "anonymous". It was supposed to be decentralised, public and out of control of the governments or anyone elses hands. That makes it FAIR. And it does not get fairer than that.

Does that mean there are no safe havens? There are. Monero is a very safe haven, for example. But then again, Monero is not and will never be what Bitcoin is and what Bitcoin stands for. Freedom for the people and a sanction against the corrupt and broken fiat monetary system.

Criminals will never be safe. There will always be ways that will get them caught, sooner or later. Its the criminals like bankers and fund managers who use legal methods to screw everyone else over that we want to eradicate.

For me, bitcoin will never be a safe haven both for potential investors and with criminals.  As crypto is unpredictable, it won't always guarantee good profits and fixed income as anytime  prices fall down so there is less chances to become profitable. On the other hand, criminals won't end up succeeding in bitcoin. Remember that bitcoin is very transparent, and everything that happens in the dark will always be known later on and will be traced by the government. So at the end of the day, criminals will still be put in jail.

[Henrobakkara]

It's great that criminals can't hide behind the network of decentralized computers. It's comforting to see that cyber criminals are getting caught and thrown inside prison. The cyber criminals must understand that they can't run forever and enforcement agencies have tools to track them down.

I would recommend to read this article to get better insight on how DOJ had tracked them down.

This is a really good way to prove it to critics who keeps lying about Bitcoin that everything that they have been saying is totally a lie. Some critics has always been saying that Bitcoin is being used by scammers, because it makes them anonymous and that they won’t be caught, and they’re always using this as an excuse as a way for them to push for the ban of Bitcoin. So, I believe that with news like this that it is crystal clear now that Bitcoin cannot be a tool for such thing. So, those of them carrying such news can now know that all they have been saying all this while is totally wrong.

It doesn't even make any sense for them to even pursue that narrative about Bitcoin in the first place. How many scams and money laundering and many other financial vises have been done with Fiat currency, why was there no rally of banning Fiat currency? Bitcoin was just been hated upon without any meaningful reason but this will fade with more positive news coming forth about the Bitcoin ecosystem that it is not as bad as what they believe. 

[ManuelK93]

Furthermore bitcoin is only pseudoanonym..
I think exchanging Bitcoins for fiat currencies is as difficult as laundering normal drug money.
The only thing that offers more security than cash is encryption or private keys #BTC

[Maslate]

Frauds, money laundering, and any criminal acts in regards to money can be easy to trace by the authorities if they are using fiat money but if they are only using crypto like Bitcoin, that can be hard for them as they can still hide their real identity. With what OP has mentioned, they leave a trace that made them become visible and hints that it lead who are they.

Well, it has to say that they should have to pay for what they are doing.

[evilgreed]

               Government wants regulations because hunting down such crypto currency offenders isn't as easy as what they are trying to portray. It consumes a lot of time, effort and resources. Had the amount not been that big or if the victims didn't care enough about their stolen funds, I highly doubt that the FBI would do anything about it. This is just a way for the FBI to boost their reputation and scare off some people who would want to use crypto in crimes. At least that's how I understand this.

[Webetcoins]

It doesn't even make any sense for them to even pursue that narrative about Bitcoin in the first place. How many scams and money laundering and many other financial vises have been done with Fiat currency, why was there no rally of banning Fiat currency? Bitcoin was just been hated upon without any meaningful reason but this will fade with more positive news coming forth about the Bitcoin ecosystem that it is not as bad as what they believe.

There are so many criminal activities happened to fiats and people gets used to this that's why they do not question it anymore but btc is a new thing to them and maybe they don't also like the approach of btc that's why they throw any negative statements that they can think of and maybe those people compare btc to paypal because we know that paypal have a reversible function where you can easily recover your money if you think you send it from a scammer but btc cannot do it although there is still another way to track cyber criminals and this news is a proof that it is possible in btc. However, I don't think haters will stop after this but they will find another angle to continue their hate in btc.