Re: Bitcoin Unable To Provide Privacy, Attracts FED and IRS Heat, FinServices Cave Demands

[rooty]

Shut up jy




 Original Message 
On Dec 1, 2016, 8:56 PM, grarpamp wrote:
https://news.slashdot.org/story/16/12/01/2119257/south-korea-to-kill-the-coin-in-path-towards-cashless-society

South Korea hell bent on kiling cash.


https://yro.slashdot.org/story/16/12/01/2034208/bitcoin-exchange-ordered-to-give-irs-years-of-data-on-millions-of-users

US hell bent on killing [financial] pridom and freevacy.
Ever growing unconstitutional suspicionless general warrants.
Trying to track your BTC, dollars, chickens, jeans and worthless offal.
Untaxed gifts banned. Barter declared illegal without registry, appraisal, fees.
Welcome to the digital currencies and economy you were
desperate create but foolishly failed to retain.
Eyes and chains sit on you when you sit on your ass.

Bitcoin Unable To Provide Privacy, Attracts FED and IRS Heat, FinServices Cave Demands

[grarpamp]

https://news.slashdot.org/story/16/12/01/2119257/south-korea-to-kill-the-coin-in-path-towards-cashless-society

South Korea hell bent on kiling cash.


https://yro.slashdot.org/story/16/12/01/2034208/bitcoin-exchange-ordered-to-give-irs-years-of-data-on-millions-of-users

US hell bent on killing [financial] pridom and freevacy.
Ever growing unconstitutional suspicionless general warrants.
Trying to track your BTC, dollars, chickens, jeans and worthless offal.
Untaxed gifts banned. Barter declared illegal without registry, appraisal, fees.
Welcome to the digital currencies and economy you were
desperate create but foolishly failed to retain.
Eyes and chains sit on you when you sit on your ass.

Re: Bitcoin Unable To Provide Privacy, Attracts FED and IRS Heat, FinServices Cave Demands

[Steven Schear]

http://bitcoin-brokers.org/, if its still operating, can be an important
element in a thorough trade-craft of financial privacy. They act as brokers
to enable non-AML/KYC purchase of bitcoin. Sellers escrow their bitcoin
with the broker. Buyers deposit cash into seller's bank account at a branch
teller, acquire and present proof of payment, via broker, to the seller.
Assuming no dispute, broker releases bitcoins to buyer minus a reasonable
commission. Because broker never touches any fiat they aren't technically
an exchanger. Seller pays no commission (last time I checked) but is not
anon to buyer (and of course broker).

On Sat, Nov 19, 2016 at 11:54 PM, grarpamp  wrote:

> https://yro.slashdot.org/story/16/11/18/2146221/irs-
> demands-identities-of-all-us-coinbase-traders-over-three-year-period
> http://motherboard.vice.com/read/irs-demands-identities-
> of-all-coinbase-traders-over-two-year-period
> https://www.documentcloud.org/documents/3222198-Petition-
> for-Coinbase-Trader-Identities.html
> https://twitter.com/zerohedge/status/799401350824132608
> https://www.documentcloud.org/documents/3222199-Memorandum-
> in-Support-of-Petition-for-Coinbase.html
>
> In bitcoin-related investigations, authorities will often follow the
> digital trail of an illegal transaction or suspicious user back to a
> specific account at a bitcoin trading company. From here,
> investigators will likely subpoena the company for records about that
> particular user, so they can then properly identify the person
> suspected of a crime. The Internal Revenue Service, however, has taken
> a different approach. Instead of asking for data relating to specific
> individuals suspected of a crime, it has demanded bitcoin trading site
> Coinbase to provide the identities of all of the firm's U.S. customers
> who made transactions over a three year period, because there is a
> chance they are avoiding paying taxes on their bitcoin reserves.
> Coinbase has a total of millions of customers. According to court
> filings, which were first flagged by financial blogger Zerohedge on
> Twitter, the IRS has launched an investigation to determine the
> correct amount of tax that those who use virtual currencies such as
> bitcoin are obligated to pay. But according to the documents, the IRS
> is asking for the identities of any U.S. Coinbase customer who
> transferred crypto-currency with the service between 2013 and 2015.
> "The John Does whose identities are sought by the summons are United
> States persons who, at any time during the period January 1, 2013,
> through December 31, 2015, conducted transactions in a convertible
> virtual currency," reads a memorandum written by Department of Justice
> attorneys and filed on Thursday, November 17.
>

Re: Bitcoin Unable To Provide Privacy, Attracts FED and IRS Heat, FinServices Cave Demands

[Mirimir]

On 11/21/2016 07:31 PM, grarpamp wrote:
> On Mon, Nov 21, 2016 at 6:32 AM, John Newman  wrote:
>> Gotta tumble those coins !
> 
> The degree of unlinkability achievable with bitcoin
> tumbling is not as high as people might think.
> Lots of papers on that.

One mix isn't enough. Mixing too much at one go is pointless. It's the
snake eating a pig issue. And you need to mix at least three times,
using different mixing services, among different wallets. I like using
Whonix instances, because they're easy to setup, and can be considered
disposable.

> Plus other hurdles...
> - Exchanges ... logs, fees, account locking (theft)

Don't use them :)

> - Tumblers... logs, fees, risk of theft

I've never suffered from theft.

http://foggeddriztrcar2.onion
http://bitmixer2whesjgj.onion
http://grams7enufi7jmdl.onion/helix

> - Joinmarket, the only operational, p2p, self contained
> in network method, in existance... has some issues too.

So does it work well as a mixer?

I'll check it out.

Re: Bitcoin Unable To Provide Privacy, Attracts FED and IRS Heat, FinServices Cave Demands

[grarpamp]

On Mon, Nov 21, 2016 at 6:32 AM, John Newman  wrote:
> Gotta tumble those coins !

The degree of unlinkability achievable with bitcoin
tumbling is not as high as people might think.
Lots of papers on that.
Plus other hurdles...
- Exchanges ... logs, fees, account locking (theft)
- Tumblers... logs, fees, risk of theft
- Joinmarket, the only operational, p2p, self contained
in network method, in existance... has some issues too.

Re: Bitcoin Unable To Provide Privacy, Attracts FED and IRS Heat, FinServices Cave Demands

[Mirimir]

On 11/20/2016 12:54 AM, grarpamp wrote:
> https://yro.slashdot.org/story/16/11/18/2146221/irs-demands-identities-of-all-us-coinbase-traders-over-three-year-period
> http://motherboard.vice.com/read/irs-demands-identities-of-all-coinbase-traders-over-two-year-period
> https://www.documentcloud.org/documents/3222198-Petition-for-Coinbase-Trader-Identities.html
> https://twitter.com/zerohedge/status/799401350824132608
> https://www.documentcloud.org/documents/3222199-Memorandum-in-Support-of-Petition-for-Coinbase.html
> 
> In bitcoin-related investigations, authorities will often follow the
> digital trail of an illegal transaction or suspicious user back to a
> specific account at a bitcoin trading company. From here,
> investigators will likely subpoena the company for records about that
> particular user, so they can then properly identify the person
> suspected of a crime. The Internal Revenue Service, however, has taken
> a different approach. Instead of asking for data relating to specific
> individuals suspected of a crime, it has demanded bitcoin trading site
> Coinbase to provide the identities of all of the firm's U.S. customers
> who made transactions over a three year period, because there is a
> chance they are avoiding paying taxes on their bitcoin reserves.

Some people jus' gotta learn OpSec that hard way, I guess :(

Bitcoin Unable To Provide Privacy, Attracts FED and IRS Heat, FinServices Cave Demands

[grarpamp]

https://yro.slashdot.org/story/16/11/18/2146221/irs-demands-identities-of-all-us-coinbase-traders-over-three-year-period
http://motherboard.vice.com/read/irs-demands-identities-of-all-coinbase-traders-over-two-year-period
https://www.documentcloud.org/documents/3222198-Petition-for-Coinbase-Trader-Identities.html
https://twitter.com/zerohedge/status/799401350824132608
https://www.documentcloud.org/documents/3222199-Memorandum-in-Support-of-Petition-for-Coinbase.html

In bitcoin-related investigations, authorities will often follow the
digital trail of an illegal transaction or suspicious user back to a
specific account at a bitcoin trading company. From here,
investigators will likely subpoena the company for records about that
particular user, so they can then properly identify the person
suspected of a crime. The Internal Revenue Service, however, has taken
a different approach. Instead of asking for data relating to specific
individuals suspected of a crime, it has demanded bitcoin trading site
Coinbase to provide the identities of all of the firm's U.S. customers
who made transactions over a three year period, because there is a
chance they are avoiding paying taxes on their bitcoin reserves.
Coinbase has a total of millions of customers. According to court
filings, which were first flagged by financial blogger Zerohedge on
Twitter, the IRS has launched an investigation to determine the
correct amount of tax that those who use virtual currencies such as
bitcoin are obligated to pay. But according to the documents, the IRS
is asking for the identities of any U.S. Coinbase customer who
transferred crypto-currency with the service between 2013 and 2015.
"The John Does whose identities are sought by the summons are United
States persons who, at any time during the period January 1, 2013,
through December 31, 2015, conducted transactions in a convertible
virtual currency," reads a memorandum written by Department of Justice
attorneys and filed on Thursday, November 17.