PirateAt40's Money Laundering Operations: GPUMAX and BST

[ninjaat40]

drugs mostly.  make a purchase with the top sellers on SR and then trace them.

Lol. Can't believe I missed this.

You're obviously full of shit. All SR transactions go through a tumbler which uses thousands of transactions to make it hard to trace, but more importantly Silk Road never gives sellers coins from their buyers, they switch them with other buyers (and vice versa).

There is absolutely no need to launder Silk Road money, Silk Road take a 10% cut to do that & provide escrow.

SR tumbles your coins with other dirty ones.  this disintermediates the transaction, but does not actually give you clean coins. even if you accept other people's dirty coins, you are trusting the operators of silk road to keep your info safe.

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[Tuxavant]

I wish everyone would shut the fuck up about money laundering. Each and every one of us uses encryption in some way to protect our private information. Why the fuck is financial data any different?

Bad guys: If you're doing "bad things" in the real world, and you're unlucky or a big enough target, you're eventually going to get boned by the cops and a cell mate.

Cops: Stop fucking invading my financial privacy to make your fucking job easier. Don't you already get like unlimited vacation days for shooting innocent civilians?

[imsaguy]

SR tumbles your coins with other dirty ones.  this disintermediates the transaction, but does not actually give you clean coins. even if you accept other people's dirty coins, you are trusting the operators of silk road to keep your info safe.

You mentioned buying from a SR seller and following the coins, from what you described there you can see it doesn't work.

Thats true you do get other people's dirty coins, but if you use a wallet service, like blockchain.info, they essentially do the same thing. If you analyze your BTC addresses you are bound to have money from allinvain, the 50k pizza, the linode hacks and Bitcoinica hacks. There is a thread on it I will link it to you.

Silk Road doesn't keep anybodies info. Sellers don't provide anything other than username, password, tormail account & a PGP key. When buyers order stuff their address is encrypted with the sellers PGP key, so only the seller has access to the buyers address. Don't see how the operators of silk road could expose your details.

There are also services on Onionland that mine fresh blocks and sell them for 50BTC + 1-2% fee, not near the fees pirate must be charging

ninjaat40 is a troll.  There's nothing to back up his claims.  All of his claims have been debunked.  My guess is its someone that's butthurt about not getting invited into gpumax or btcst yet.

[Blazr]

I think we need a petition thread.  The vote will tell us the truth.

I hope you're not being serious? A vote doesn't constitute as evidence.

[imsaguy]

I think we need a petition thread.  The vote will tell us the truth.

I hope your not being serious? A vote doesn't constitute as evidence.

you're*

and of course he isn't being serious. derp.

[imsaguy]

imsaguy (who is an annoying twat)

lulz

[notme]

you are right.  i don't have the balls to publicly identify myself as the snitch and take the stiches i deserve.

I think the role of Captain Obvious has already been claimed, so I'll run the risk of being Major Obvious, but if you have this kind of information, wouldn't that reveal enough information for pirateat40 to know who you are?

It doesn't matter if I know, or imsaguy (who is an annoying twat), or anyone else knows, if you're truly worried about repercussions.  In the hypothetical situation where your statements are true, I suspect the intersection of people who know pirate's shady doings, are aware of the bitcoin community to the degree that you appear to be, and know pirate's purchasing habits would put you on a very short list.  zux0r, is that you?  

In such case, your concerns appear to be disingenuous.  You obviously have another account and have probably posted in the past.  You are just as obviously hiding from the wrong people (us).  There are many possible reasons for this, but they amount to you securing some sort of gain at the expense of pirate.  I don't know what your game is, but I wouldn't be surprised if you were hoping the disclosure of the "theft by check" would have done the trick, and you have now felt forced to make a bolder move.

It's just conjecture, though.  I don't know if you're a competitor of some sort, but I seriously doubt this thread was created out of your community-preserving altruism.

Maybe someone shorted BTCST and believes if they cause a bank run pirate will default?

[Maged]

SR tumbles your coins with other dirty ones.  this disintermediates the transaction, but does not actually give you clean coins. even if you accept other people's dirty coins, you are trusting the operators of silk road to keep your info safe.

You mentioned buying from a SR seller and following the coins, from what you described there you can see it doesn't work.

It works just fine if you buy from a major seller multiple times. If you make up any reasonable portion of the sales on SR, it is beyond trivial to remove the SR mixer from the equation. This evidence does not need to be enough to convince a jury to convict you - it just needs to be enough to find you. The actual evidence will fall in place easily enough from there.

Thats true you do get other people's dirty coins, but if you use a wallet service, like blockchain.info, they essentially do the same thing. If you analyze your BTC addresses you are bound to have money from allinvain, the 50k pizza, the linode hacks and Bitcoinica hacks.

I think you mean like MtGox, since blockchain.info doesn't mix coins. That being said, e-wallets - especially MtGox - are trivially easy to detect in the blockchain. From there, you just have to ask the e-wallet where the user's funds then moved.

Silk Road doesn't keep anybodies info. Sellers don't provide anything other than username, password, tormail account & a PGP key. When buyers order stuff their address is encrypted with the sellers PGP key, so only the seller has access to the buyers address. Don't see how the operators of silk road could expose your details.

He's not talking about address info. Rather, he's referring to the Bitcoin addresses that are withdrawn to. Even if Silk Road claims they don't keep those records, Silk Road could easily just be a front for the DEA. It's impossible to know for sure.

There are also services on Onionland that mine fresh blocks and sell them for 50BTC + 1-2% fee, not near the fees pirate must be charging

Are there services that can process 10k BTC/day? Because that's about the volume we're talking about, and that was as of a few months ago. I have no idea what Pirate's volume is at now.

[notme]

It works just fine if you buy from a major seller multiple times. If you make up any reasonable portion of the sales on SR, it is beyond trivial to remove the SR mixer from the equation.

I don't see how that works as SR never gives sellers their buyers coins.

e-wallets - especially MtGox - are trivially easy to detect in the blockchain. From there, you just have to ask the e-wallet where the user's funds then moved.

Was using that to point out how quickly/easily dirty money can get dispersed.

Are there services that can process 10k BTC/day?

10k btc? doubt it, but does being able to process such large amounts allow you to charge at least 15x more money for laundering it?
You could use a couple of these services to launder the money and do it over a few days/weeks.

Some people aren't willing to have their money in limbo that long.

[Blazr]

Some people aren't willing to have their money in limbo that long.

They're willing to pay 15x more to have it a few days earlier?

[notme]

Some people aren't willing to have their money in limbo that long.

They're willing to pay 15x more to have it a few days earlier?

That sort of discount is more common among counterfeiters than money launderers.

Oh no!  Fake bitcoins!

[Maged]

I don't see how that works as SR never gives sellers their buyers coins.

Oh, really? That actually makes it easier to track. Thanks for that. The only way it would make it harder is if Pirate is SR's mixer, which is one theory that I subscribe to.

Was using that to point out how quickly/easily dirty money can get dispersed.

And my point was that once dirty funds hit an e-wallet, it no longer matters how dirty the funds are on the blockchain.

Are there services that can process 10k BTC/day?

10k btc? doubt it, but does being able to process such large amounts allow you to charge at least 15x more money for laundering it?
You could use a couple of these services to launder the money and do it over a few days/weeks.

Absolutely. Say you make 5k BTC per day. Imagine getting the following choice:
1) Safely cash out 1k BTC/day with only a 2% fee. Bank the other 4k BTC/day and cry in a corner.
2) Safely cash out all 5k BTC/day and pay 50% in fees.

Tell me, which one is better, given that you need USD to pay your supplier?

Edit: Oh, and I forgot to mention that holding BTC for even one extra day could result in a 50% loss anyway. Remember, until recently, this was quite often the case.

[jgarzik]

It is shocking, shocking that an outsized return from an investment with zero transparency is related to major illegal operations.  Who would have thought?

[imsaguy]

imsaguy (who is an annoying twat)

lulz

Good evening, what are you ladies discussing again? It seems like I saw this thread a few times already.

Cheeseburger.

[sturle]

ninjaat40 is a troll.  There's nothing to back up his claims.  All of his claims have been debunked.

So you are implying that pirate is lying when he claims that his operation is illegal, and uses that as an excuse to not reveal his identity, or do you have knowledge or evidence of other illegal activities?  Since you seems to know that much about pirate, can you please reveal some real information about pirates illegal business?

It is well known that pirate is a crook.  He even claims to be a crook himself.  I'm glad someone finally reveal some details about exactly what he does.  The claims have not been debunked.  Not in this thread.

[Clipse]

If its used to launder for drug money, power to him. Isnt the government laundring your hard earned money every single day ?

Some of us actually dont think anyone should be handled like a mass murder if they want to buy/sell drugs, some of us still believe that a person should be responsible for his own undoing and not left to the government regulations and retarded rules.

Take a look at all the crimes government employees(some who actually write the new law amendments) do and they end up getting either suspended with full pay and benefits or at worse a slap on the wrist, the law makers seem to be above the law so its time citizens start to live their life the way they choose albeit without harming anyone else directly/indirectly(its fine if you want to harm yourself ie. overlord drug use).

[Scott J]

watching 

[terrytibbs]

ninjaat40 is a troll.  There's nothing to back up his claims.  All of his claims have been debunked.

So you are implying that pirate is lying when he claims that his operation is illegal, and uses that as an excuse to not reveal his identity, or do you have knowledge or evidence of other illegal activities?  Since you seems to know that much about pirate, can you please reveal some real information about pirates illegal business?

It is well known that pirate is a crook.  He even claims to be a crook himself.  I'm glad someone finally reveal some details about exactly what he does.  The claims have not been debunked.  Not in this thread.

Thank you for this post. It's about time someone put him in his place.

[imsaguy]

ninjaat40 is a troll.  There's nothing to back up his claims.  All of his claims have been debunked.

So you are implying that pirate is lying when he claims that his operation is illegal, and uses that as an excuse to not reveal his identity, or do you have knowledge or evidence of other illegal activities?  Since you seems to know that much about pirate, can you please reveal some real information about pirates illegal business?

It is well known that pirate is a crook.  He even claims to be a crook himself.  I'm glad someone finally reveal some details about exactly what he does.  The claims have not been debunked.  Not in this thread.

Please quote for me where pirate claimed to be a crook.

GPUMAX

GPUMAX is the ultimate form of money laundering because your coins don't come from anyone. they are printed out of thin air.  Miners are happy to be paid 150% without asking questions.  anyone who has been paid out from GPUMAX has recieved dirty coins (unless you were a really early tester).  He can send fresh clean coins to anyone who pays him in bitcoin.  we know that even people who don't have a relationship with us are using it to launder.

What about all those that have paid to use gpumax?  There's a persistent line of people asking "when's my purchase going to start?" so are you saying pirate's making all those puppet accounts just to ask those stupid questions that have been asked and answered over and over and over again.  The mere fact that tainted happen to get paid out of gpumax doesn't mean anything.  People buy their time from gpumax by sending them coins, clean or dirty.  If that makes pirate a crook, then where are the accusatory posts against all the other services that don't use a strict 1:1 reserve of bitcoins for their clients.  MtGox, Intersango, GLBSE, you name it, all mix the coins.  You can't blacklist every single coin that's touched a theft because there wouldn't be any left due to the divisibility of bitcoin.

The whole "I can't say anything because that will reveal who I am" doesn't hold water.  If pirate only told a small set of people, then he only has a small set of people to consider who is talking which means he probably already has an idea of who it is.  If pirate has told a large set of people, then any number of them could be talking and it wouldn't be immediately clear who is talking.  That means you've got nothing to worry about if you talk.  So which is it?

[imsaguy]

ninjaat40 is a troll.  There's nothing to back up his claims.  All of his claims have been debunked.

So you are implying that pirate is lying when he claims that his operation is illegal, and uses that as an excuse to not reveal his identity, or do you have knowledge or evidence of other illegal activities?  Since you seems to know that much about pirate, can you please reveal some real information about pirates illegal business?

It is well known that pirate is a crook.  He even claims to be a crook himself.  I'm glad someone finally reveal some details about exactly what he does.  The claims have not been debunked.  Not in this thread.

Thank you for this post. It's about time someone put him in his place.

lulz