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Silk Road Investigators Charged With Stealing Bitcoin
itwbennett writes Two former U.S. government agents face charges related to stealing hundreds of thousands of dollars worth of bitcoin while assisting with an investigation of the Silk Road underground online marketplace, with one accused of using a fake online persona to extort money from operators of the site. Facing charges of wire fraud and money laundering are Carl Force, 46, of Baltimore, a former special agent with the U.S. Drug Enforcement Agency, and Shaun Bridges, 32, of Laurel, Maryland, a former special agent with the U.S. Secret Service. Both served on the Baltimore Silk Road Task Force, which investigated illegal activity on the Silk Road website, the Department of Justice said Monday in a press release.
How convenient that misconduct of the investigators which would have a bearing on admissibility of evidence in Ulbrich criminal trial was not revealed until after his trial was over. He probably does have a few days until his 60 day deadline to appeal lapses though.
It's not very reassuring when the investigators in such a case are themselves blatantly breaking the law to serve themselves. It makes you wonder about the other government agencies and employees looking at things such as all the mass collected survelance materials and wondering how they can use their position to their own personal benefit. Contrary of course to what the government says will never happen. I don't feel like there is much integrity. Having said that at least they got caught even though after the fact.
Those who can, do. Those who cannot, sue.
It's not impossible to trace, but it's not easy either. It's not like every bitcoin wallet corresponds to exactly one person. A person can have as many bitcoin wallets as they want. You don't need to transfer $1 million from 1 single wallet to another single wallet in order to transfer $1 million. Secondly, proving someone is the owner of a given bitcoin wallet is much harder to do than to prove a person is the owner of a bank account. You might be able to coax a banker into revealing the owner of an account. It's much harder to prove that someone knows the answer to a math problem. And in order to freeze those funds you also need to know the answer to that math problem. You pretty much have to catch them in a library with their laptop and bitcoin accounts open.
It is possible to correlate bitcoin wallets with people given enough resources, especially if they are careless. But it's still a lot safer for criminals than any sort of traditional bank account.