>Seems like a problem that probably has a Cypherpunkish solution.
Crypto is not a remedy for stupidity, fortunately. At some point tangibles
must change hands, and that's when handcuffs come into action. Proper
money laundering is more complicated than breaking snake-oil crypto.
The bad thing is that these events are a good excuse for DMCA and
censorship in general. As long as it is more cost-effective to hire
state to prosecute reverse-engineering than to pay for such services
we will have more and more laws limiting the use of our brains.
The good part is that blackmails like this one will help the spread
of hard crypto.
