Seized eXch.cx funds, risk score removed when btc sold by government?

[nonlogs]

Hello good day everyone,

I have a very serious question. They have seized the eXch funds ETH and BTC and now probably hold more than $46 million. Would they return these to the bybit victims, or would the government sell them? What would happen to the risk score? Would the tainted Bitcoin become untainted? How can the government decide that? eXch was used by people all over the world. Who gives the German government the right to decide that those Bitcoins are safe now?

Here are some screenshots:

[OmegaStarScream]

eXch had their own liquidity, just because they let the hackers use their exchange, does not mean the seized funds belong to the Bybit exchange or the victims. I don't believe eXch ever froze them, did they?

Given that it's the goverment, they won't have any issues selling it OTC or through an exchange whether they're tainted or not.

[nonlogs]

eXch had their own liquidity, just because they let the hackers use their exchange, does not mean the seized funds belong to the Bybit exchange or the victims. I don't believe eXch ever froze them, did they?

Given that it's the goverment, they won't have any issues selling it OTC or through an exchange whether they're tainted or not.

Yes but eXch funds where mainly accumulated through fees and i believe that was seized but if you look at blockchair they call it high risk funds: https://blockchair.com/bitcoin/address/bc1qcatv4gxq24z8hwt67sftjlnlm6dxnk04saz5zw

So you mean Govt can do anything, no risk no AML ?

[OmegaStarScream]

So you mean Govt can do anything, no risk no AML ?

Now I don't know the legalities of it but we have seen the german and U.S goverments selling bitcoin before (from silk road for example) so I would say such a score have no meaning for them yes. Who's going to punish the exchange for allowing "dirty" funds? the same goverment who wants to sell?

[Zwei]

So you mean Govt can do anything, no risk no AML ?

"high risk funds" aka "tainted coins" is something the government and AML/risk scoring companies came up with, it's all bullshit.
and obv, the bullshit doesn't apply to the bullshitter. so yep, those coins magically become "clean" once they want to sell them, which just proves that it is all bullshit even more.

[Z-tight]

They have seized the eXch funds ETH and BTC and now probably hold more than $46 million. Would they return these to the bybit victims, or would the government sell them?

Of course they will sell it, maybe through auction. Why would they give the funds to bybit, who says it belongs to them. Governments seize cryptocurrencies all the time, and they sell the coins they call 'tainted' or 'dirty' without any problems, and once they reintroduce it back into the market, it becomes 'clean', so this shouldn't be any different. A coin is only tainted or clean when they say it is, you can imagine how ridiculous that is right.

[Stalker22]

AML wasnt invented to stop the government.  It is a system of laws created by them, for them, to control everyone else.  The laws dont apply when they are the ones doing the money laundering.

[Darker45]

Adlai Stevenson used to speak of a politician who, after cutting down a tree, used the stump as a platform for his conservation speech. That's what the government does all the time. Their standards are always double.

They label coins as dirty, but it's only because they're in the hands of other people. If they're transferred to their custody, they magically turn clean. They can sell them, auction them, keep them as strategic reserve, whatever.

[nonlogs]

So you mean Govt can do anything, no risk no AML ?

"high risk funds" aka "tainted coins" is something the government and AML/risk scoring companies came up with, it's all bullshit.
and obv, the bullshit doesn't apply to the bullshitter. so yep, those coins magically become "clean" once they want to sell them, which just proves that it is all bullshit even more.

As long as you pay political party for election campaigns your funds are clean, okay, got it.

[NotATether]

I'm pretty sure the muppets doing chain analysis are still listing my eXch profits as high risk even though they banned me from doing business with them waaaay before the hack.

Just goes on to show you how serious they are.

[examplens]

Apart from a few posts here, do we even have any clearer confirmation that eXch coins were really seized, or was it just bragging rights?

How can the government decide that? eXch was used by people all over the world. Who gives the German government the right to decide that those Bitcoins are safe now?

Governments like the US and Germany write AML rules, thereby giving themselves the right to adapt them to their own actions. It has long been clear that they are the biggest money launderers, because no matter how "dirty" the money is, once it passes through their hands, it becomes perfectly clean.

I'm pretty sure the muppets doing chain analysis are still listing my eXch profits as high risk even though they banned me from doing business with them waaaay before the hack.

Just goes on to show you how serious they are.

Even before the Bybit hack, the analytics tools of competing exchanges marked eXch addresses as risky, and the coins on them were tainted. It helped that eXch always used the same address.

[NotATether]

Even before the Bybit hack, the analytics tools of competing exchanges marked eXch addresses as risky, and the coins on them were tainted. It helped that eXch always used the same address.

So this is an abuse of power. How come risk scoring isn't regulated? I thought trigger-happy EU would jump at regulating yet another industry.

[Lucius]

As long as you pay political party for election campaigns your funds are clean, okay, got it.

It is not only donations, but also work in the field and convincing people that a political option is better than another. In other words, all those who cooperate with the authorities in any way will always have an advantage over those who oppose them. For the authorities today, any attempt to create privacy is a threat, especially if it touches their centralized fiat system that actually keeps things under control.

The authorities are actually the biggest mixer, but if you make the rules and write the laws, you can do whatever you want.