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s240779

Registered: 12/07/10
Posts: 12,880
Last seen: 2 months, 9 days
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Re: Feds trying to seize SR owners wallet 600,000 BTC [Re: fapjack]
#18949611 - 10/08/13 01:25 PM (10 years, 3 months ago) |
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Quote:
fapjack said: Even if Ulbricht avoids spending the remainder of his days in prison, his $80 million fortune probably won’t be waiting for him.
Entire article explains that the FBI can't access Ulbricht's bitcoins. Then all-of-a-sudden says that if he ever gets out, he probably won't be able to access his bitcoins...
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something cool
meandering

Registered: 01/30/12
Posts: 1,306
Last seen: 7 years, 4 months
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Re: Feds trying to seizre SR owners wallet 600,000 BTC [Re: Smushroom]
#18949639 - 10/08/13 01:33 PM (10 years, 3 months ago) |
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Quote:
Smushroom said: Using a single wallet would allow him to memorize the key to it so he could avoid writing it down (IRL or digitally). If he had split it up to multiple wallets he would be forced to archive the keys somewhere. This would replace the sophisticated digital protection on the wallets with very simple, very crackable physical protection.
No, he could use an equally sophisticated singular digital encryption to lock an archive holding his multiple wallet keys.
Quote:
Laudering money while still running SR could have posed unforeseen problems. You also have to be pretty visable to launder millions of dollars and play whatever role you are using to clean it. IMO not cleaning to money and making it useable until after SR was closed is the right idea.
There are many, many legitimate instant BTC millionaires at this time who will be pumping their gains into their bank accounts using the maximum daily allowed by their BTC service for a long time to come. BTC is also not a federally recognized currency in Canada, where he was, and that presents many additional implications in his favor for transferring those BTC into money.
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mio said: you talk like you could have done it better...
Unquestionably, but that is not a point of mine, and neither here/there. His damning mistakes were not slip ups, careless in self-protection, but ones that took actual effort to make.
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i like cow poo
Nature Lover


Registered: 10/20/09
Posts: 4,041
Loc: Mother Nature's Vagina
Last seen: 1 year, 3 months
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Re: Feds trying to seize SR owners wallet 600,000 BTC [Re: s240779]
#18949708 - 10/08/13 01:48 PM (10 years, 3 months ago) |
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meh he had a good run. im sure he knew that he had a good chance of being taken down. why he didnt move to some obscure country is beyond me
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GreenGrassMatt
Stranger


Registered: 12/09/12
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Last seen: 9 years, 5 months
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Re: Feds trying to seizre SR owners wallet 600,000 BTC [Re: i like cow poo]
#18949772 - 10/08/13 02:06 PM (10 years, 3 months ago) |
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This head of Silk Road guy is a dumbass bitch honestly. I mean, what kind of idiot attaches their email address to a comment he made about Silk Road? He put the exact online address for Silk Road, and then his email if anyone had questions? I thought this was supposed to be on the DL. I wonder if he was set up? Cause if I had just 5 to 10 million I would be living out in the backwoods of Idaho with a house and self sustain. Looks like greed took over
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Smushroom
Avid Learner

Registered: 02/02/05
Posts: 2,806
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Re: Feds trying to seizre SR owners wallet 600,000 BTC [Re: GreenGrassMatt]
#18950064 - 10/08/13 03:11 PM (10 years, 3 months ago) |
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Quote:
something cool said: No, he could use an equally sophisticated singular digital encryption to lock an archive holding his multiple wallet keys.
That would be no different than keeping them in a single wallet considering if they physically get the file then they have all his money. The only way to truly break it up would be to have multiple people hold it but then you actually have to trust multiple people.
Quote:
something cool said: There are many, many legitimate instant BTC millionaires at this time who will be pumping their gains into their bank accounts using the maximum daily allowed by their BTC service for a long time to come. BTC is also not a federally recognized currency in Canada, where he was, and that presents many additional implications in his favor for transferring those BTC into money.
DPR was an American citizen from Texas living in California, not Canada.
To truly launder money you have to make it look like legitimate income and pay income tax on that income. If you gained the money legitimately that is never an issue. If you gained that money illegally you have to funnel that money through a legitimate business and/or investment to hide it. That much sudden income draws attention. It is easier to hide / explain away that income if it is coming from a ghost account with no other activity on it than it is to hide the account if it constantly has illegal income coming into it while you are sending "legal" income out of it.
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GreenGrassMatt said: This head of Silk Road guy is a dumbass bitch honestly. I mean, what kind of idiot attaches their email address to a comment he made about Silk Road? He put the exact online address for Silk Road, and then his email if anyone had questions? I thought this was supposed to be on the DL.
Actually no he didn't. He registered the forum accounts via Tor using fake info. He made 1 post on 2 different forums advertising SR when it was first started. His mistake was that he used 1 of those accounts to post a question about programming involving bitcoins 8 months after the original SR posts. He listed his real email in that post for contact info. That post on its own would never had drawn attention and couldn't have been linked to SR. Using the same account instead of creating a new account was what really screwed him.
When he made those accounts SR had just started and was probably only making a few $1000 or less in commissions on a regular basis. For a business that size you can't assume they would spend the time/effort to make the account connection. Yes he should have made a new account but everyone acts like it would have been obvious at the time. Its only obvious they would go to that much effort to track him once the site started going millions in sales.
Yes it was a dumb unnecessary mistake but at the time it happened it was less of an issue than it is now.
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something cool
meandering

Registered: 01/30/12
Posts: 1,306
Last seen: 7 years, 4 months
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Re: Feds trying to seizre SR owners wallet 600,000 BTC [Re: Smushroom]
#18950656 - 10/08/13 05:29 PM (10 years, 3 months ago) |
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Quote:
Smushroom said:
That would be no different than keeping them in a single wallet considering if they physically get the file then they have all his money. The only way to truly break it up would be to have multiple people hold it but then you actually have to trust multiple people.
It would have been different because the multiple addresses are not known, or known to exist, and so can't be seized. The archive (which should not be stored on a home PC) would have to first be cracked. I don't think that his BTC account was seized by cracking the security, but by knowing the address (probably due to the funds transfer to the po for the attempted hit) and who hosts it, then confronting the business with a seizure notice.
Quote:
something cool said:
To truly launder money you have to make it look like legitimate income and pay income tax on that income. If you gained the money legitimately that is never an issue. If you gained that money illegally you have to funnel that money through a legitimate business and/or investment to hide it. That much sudden income draws attention. It is easier to hide / explain away that income if it is coming from a ghost account with no other activity on it than it is to hide the account if it constantly has illegal income coming into it while you are sending "legal" income out of it.
BTC millionaire, and just pay the taxes.
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Smushroom
Avid Learner

Registered: 02/02/05
Posts: 2,806
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Re: Feds trying to seizre SR owners wallet 600,000 BTC [Re: something cool]
#18951473 - 10/08/13 08:01 PM (10 years, 3 months ago) |
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Unless you give the accounts to someone else to hold or put them somewhere completely untraceable to you that will still be there in several years when you get out the feds will find the wallets. The only way they are going to access the wallets is with his cooperation, it doesn't matter if the money is in 1 or 10 wallets.
Regardless of how much encryption and hiding are done with various transactions the source code for SR had to have an account to send the commissions to in there somewhere. Even with BTC tumblers once they have access to his computer and the servers they could eventually trace the money to the accounts it ended up in. BTC and Tor are only really good and hiding starting and ending points from being discovered. Once you know either the start/end then they can somewhat trace it back since BTC transactions are public.
You can't just claim $80 million in income without explaining where it came from. YOu can't just say "I made $80M in BTC" and not have proof of where it came from. Not putting it into a US bank anyway. Laundering money means you actually have to give it a legitimate source of generation.
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something cool
meandering

Registered: 01/30/12
Posts: 1,306
Last seen: 7 years, 4 months
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Re: Feds trying to seizre SR owners wallet 600,000 BTC [Re: Smushroom]
#18952721 - 10/09/13 02:52 AM (10 years, 3 months ago) |
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I dumped some cash on BTC when it $0.13 a coin. I moved it between several wallets since, for security. I've moved it in and out of certain sites which dead-stopped the Blockchain tracking, so it's impossible for anyone to trace it back beyond a certain point. There is nothing to say how much BTC I bought, or how much I have, except my word. It's legitimate, and I can move it into bank accounts in any volume that I wish, which is also legitimate. BTC early adopter/millionaire, it simply is what it is.
Apparently, DPR's BTC haven't yet been seized, or accessed: FBI struggles to seize 600,000 Bitcoins from alleged Silk Road founder
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moi
Stranger


Registered: 02/17/10
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Re: Feds trying to seizre SR owners wallet 600,000 BTC [Re: something cool]
#18954554 - 10/09/13 02:10 PM (10 years, 3 months ago) |
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Quote:
something cool said: I dumped some cash on BTC when it $0.13 a coin. I moved it between several wallets since, for security. I've moved it in and out of certain sites which dead-stopped the Blockchain tracking, so it's impossible for anyone to trace it back beyond a certain point. There is nothing to say how much BTC I bought, or how much I have, except my word. It's legitimate, and I can move it into bank accounts in any volume that I wish, which is also legitimate. BTC early adopter/millionaire, it simply is what it is.
Apparently, DPR's BTC haven't yet been seized, or accessed: FBI struggles to seize 600,000 Bitcoins from alleged Silk Road founder
are you saying you made >1million with bitcoins?
fucking grats man
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my3rdeye



Registered: 08/10/12
Posts: 4,354
Loc: Canada
Last seen: 2 years, 8 months
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Re: Feds trying to seizre SR owners wallet 600,000 BTC [Re: dark3st]
#18964342 - 10/11/13 02:44 PM (10 years, 3 months ago) |
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Quote:
dark3st said:
Everyone needs to Stop judging him.
His incompetence exposed many sellers and users identities. This is a drug war we are in, and he got rich from the drug war, that makes him a profiteer. So a few people got to try 12 dollar hits of LSD, if anything that LSD left the normal market. You know the people who are not bitches and get drugs without this "service". Sorry I would rather have LSD brought over by a dealer in a car, that's better than local acid being shipped out to whoever in the world will pay the most. That shit is bad for the LSD supply. So good riddance SR. PS want to bet DPR starts co operating with more than his wallet password? These heroes who just want to help people get drugs, they always flip when they are facing real time.
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lessismore
Registered: 02/10/13
Posts: 6,268
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Re: Feds trying to seizre SR owners wallet 600,000 BTC [Re: my3rdeye]
#18964375 - 10/11/13 02:51 PM (10 years, 3 months ago) |
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You could use some lsd to get rid of the frustration :-)
see the good in people and everything
peace
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i like cow poo
Nature Lover


Registered: 10/20/09
Posts: 4,041
Loc: Mother Nature's Vagina
Last seen: 1 year, 3 months
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Re: Feds trying to seizre SR owners wallet 600,000 BTC [Re: my3rdeye]
#18980461 - 10/15/13 08:47 AM (10 years, 3 months ago) |
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Dude you need to calm yo tits. SR was bad in some ways but that was when they had the armory and a couple other questionable things. The drugz they were sellin was just fine.
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