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North Korea Is Dodging Sanctions With a Secret Bitcoin Stash (bloomberg.com)
An anonymous reader quotes a report from Bloomberg: North Korea appears to be stepping up efforts to secure bitcoin and other cryptocurrencies, which could be used to avoid trade restrictions including new sanctions approved by the United Nations Security Council. Hackers from Kim Jong Un's regime are increasing their attacks on cryptocurrency exchanges in South Korea and related sites, according to a new report from security researcher FireEye Inc. They also breached an English-language bitcoin news website and collected bitcoin ransom payments from global victims of the malware WannaCry, according to the researcher. Kim's apparent interest in cryptocurrencies comes amid rising prices and popularity. The same factors that have driven their success -- lack of state control and secretiveness -- would make them useful fund raising and money laundering tools for a man threatening to use nuclear weapons against the U.S. With tightening sanctions and usage of cryptocurrencies broadening, security experts say North Korea's embrace of digital cash will only increase. The 15-member Security Council on Monday approved sanctions aimed at punishing North Korea for its latest missile and nuclear tests. U.S. officials said the new measures would cut the country's textile exports by 90 percent, restricting its ability to get hard currency.
This is precisely why cryptocurrency was invented - to skirt the law and avoid moral responsibilities. Its sole purpose is as an enabler of criminal activity.
Just fucking ban this fake monopoly money bullshit already.
Regardless of the payment method, the problem is that goods are still physically flowing into NK, paid for. What is China / South Korea / Japan doing about those cargo ships or vessels supplying the regime, or the companies behind them?
You can pay in bitcoin, but you still have to pay shipping. How does that work?
N. Korea only exists because of China. MacArthur had the fucking N. Koreans almost off the map but the Chinese had to come in and save them and prop up the Kim regimes.
It is 100% China's fault that North Korea exists and pulls this shit. All they have to do is pull the rug out and N. Korea falls. Un wants to be the shit, China is perfectly capable of neutralizing him.
China wants to be a World power? Well, it's time they learn the burdens and responsibilities.
Otherwise, China can go fuck themselves.
There is no concrete evidence that this has occurs. That "research" entry which is comprised of a single blog entry does not show anything substantial. The link to the supposedly compromised four wallets in South Korea, is a generic article about Bitcoin and doesn't mention any compromises anywhere on that page.
When looking at the actual SK exchange compromise there is no indication that NK was involved by anyone; https://hacked.press/2017/04/29/korean-bitcoin-exchange-yapizon-confirms-5-million-hack-all-customers-to-pay-with-balances/ . Furthermore, other than disrupting SK, it's not like NK can use that exchange now to conduct its business. If I was NK, what better means than to use a SK, Japanese or US Bitcoin Exchange to conduct my shady business?
Not saying NK is doing stupid shit, but this "research" is a waste of people's time. It certainly was mine.
Thanks Slashdot editors for yet another high-quality misleading entry!
Is very sexy man.
I'm wondering if there's a relation between this and China's current crackdown on Bitcoin exchanges.
Because physically policing every boat is very expensive and would impede non-embargo traffic.
The bans work mostly via banking; If you cannot receive money for good shipped to NK, then you wont sell them product.
Without the ability to cheaply block the money, what you are left with is old fashioned embargoes; which are expensive and usually part of a lead up to military action.
If North Korea is building up a bitcoin stash, then maybe there would be some way for the NSA to cripple the bitcoin currency and wipe out North Korea's savings. (Of course all other bitcoin holders would be bankrupted, sorry!) Either they could find some vulnerability in the blockchain protocols or, through hacking, infiltrate and damage (okay steal) enough digital wallets as to undermine people's confidence in the currency.
Remember that bitcoin, like all money, is only as good as the TRUST people put in it as a store of value. If people can't rely on it, or if it's too easily stolen then that trust goes out the window and the value of the bitcoins will crash.
Of course this assumes that the NSA has the ability to do these things. Maybe they do, maybe they don't. But when we see the power of just (presumably) some of their stolen tools, who knows what else they have? I've heard they've got the largest number of mathematicians employed in the world. Hmm... could Bitcoin even be an NSA invention? Perhaps this is a long term trap? (I doubt it though, way too much foresight involved).
Questions:
Would a working quantum computer be able to do bitcoin (or other blockchain algorithms) calculations at speeds far greater than conventional or even specialized CPUs? In which case will the first organization to have such a machine be able to profit immensely (before destroying the entire market)?
Is the recent run up of bitcoin prices perhaps due to the North Koreans buying/stealing bitcoins because otherwise they'll have no other way of obtaining hard currency? (It would be ironic if so; they'd be going from "hard" currencies to something that is completely abstract).
can't you simply refuse to provide transit to them?
Who is the 'we' and 'you' that your post refers to?
Because Nearly all of North Korea's Internet traffic is routed through China
So the pertinent question would be "can't we simply ask China to refuse to provide transit to them?" to which the answer would be 'yes', but in reality China would not cut off their internet access, in the same way they do not cut off their trade, or place any security or border controls on North Korea's northern border with China.
There's a fun thing about the internet: You needn't be at home to order shit. I ordered stuff from Amazon while I was in the US and had it shipped home, they didn't even want to know why my IP address is a continent away from my shipping address...
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
If it can be proved that North Korea is using ransomware as a source of funds, that's an act of war. The line is crossed.
There is one huge problem when you outlaw a currency: The shadow market doesn't give a shit about it. When I trade in illegal goods, why the hell should I care that the currency I trade it for is illegal, too?
If you want to see what this is like, ask anyone who was alive in an East Bloc country while it was still an East Bloc country. Old joke: How's GDR and FRG similar? You can get everything as long as you pay in D-Marks.
Just like it was required to have "West-Money" in the former East Bloc if you wanted to get anything that's short in supply, what we'll see is that you'll have to have the underground currency if you want something illegal. How do you get it? By doing something illegal for someone who has it. And now take a wild guess who has the most. And thus calls the shots.
In other words, all you do is hand more power to the mob.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
How much more of an indicator do you need that the sanctions are hurting the man than when the turns to Bitcoin to keep his country and his personal extravagances afloat? Can he keep the import and export operations of a whole country moving using Bitcoin for his medium of exchange?
This is a move of desperation when a country takes to using Silk Road type tactics to keep trade going.
This is a dictature so they have to have an "enemy" at the moment they are using the USA, with no intention to attack (they are a dictature, they want to rationally stay at the top, attacking would mean their end, contrary to propaganda they are not dumb). But ! Back in 1950 China did not want them to go to war, they attacked the south in spite of that. And got spanked (albeit admitedely the US did a lot of population killing). So even rational people can overestimate their chance at winning.
C. Sagan : A demon haunted world:
http://www.amazon.com/gp/product/0345409469/
visit randi.org
If something becomes explicitly illegal, there is no body of 'legal use' for people making illicit use of it to hide within.
That is just common sense, although cryptocurrencies are a 'new paradigm' form of hype where common sense is ignored.
Moved on? What on earth are you talking about. China hasn't moved on. South Korea hasn't moved on. The United States hasn't moved on. Japan hasn't moved on. Russia hasn't moved on. The UN is still voting on sanctions ever year since the armistice. There is still a mined no mans zone across the 38th parallel. SK and the US are practicing joint military exercises. The US has 50k or so troops in S.K. What are you talking about? From their point of view, the entire world is trying to crush them, and certainly has their head pinned.
Only if the currency still has value in some non-shadow environment. Your East Bloc Example fails because "West-Money" had value in purchasing things from West-Bloc countries. The currency was illegal for most to have and use in the East, but was fully valid and of value in the West and the East Bloc nations used the West money to buy needed stuff.
If Bitcoin were made illegal globally it would have no real value. No government would be seeking to accumulate and use it and no governments would back it. It might retain some value on the dark-web but as it would have no value on the light-web and real world it's value would be greatly diminished.
It takes something legitimate backing a currency to give it value. Precious metals are no longer used, instead it is the promises and stability of the governments that produce the cash currencies that ensure they have value. It's a weak system as the collapse of a government would render all currency issued by it as worthless. But it is more inherently stable than bitcoin which is supported by.....
I'm too lazy to compose a creative sig.
Aren't bitcoins easily trackable? They are only anonymous if you mine them yourself or buy them from someone that mined them themselves.
Yes, it is too much trouble for your standard police department to track them. But national spy/anti-terrorist agencies like the USA, Russia, China are another story.
If you don't think the NSA/CIA/Homeland Security know exactly who North Korea is giving bitcoins too and who is giving them bitcoins, then, I have a Border Wall to sell you. Cheap. Free if you can get Mexico to pay for it.
excitingthingstodo.blogspot.com
I still don't understand how mining bitcoins can be a thing...I understand why any random person might invest in them because somehow a real dollar value has been attached to them, but when they get created out of nothing via activities that don't have any semblance of value or value control...I could never bring myself to even invest a dollar. To say it seems shady is probably a gross understatement. But I'm sure those who love bitcoin and the like have a different point of view...in the nearly decade that it's been around, I have tried numerous times to truly understand how it can even exist, and I've failed every time. Yes, any currency is made up and requires any two people who would use the currency in an exchange to agree that the currency has value. And yes, fiat paper currency doesn't have any actual value itself, but there is at least some level of legal infrastructure supporting it. Bitcoin is less than a fiat currency. And I just can't wrap my mind around why so many people have jumped into it. I'm just one person though...
I am no cryptocurrency expert, but my understanding is that the BTC really only has value because the BTC user base has formed a consensus that it does. I believe the vast majority of conscience human beings can agree that North Korea's (government's) recent actions and stance are dangerous and morally reprehensible.
Assuming that NK has channeled most of its BTC stash through a small number of wallets, and that most of them may be identified by NK's spending patterns, I think this is a good case for implementing "poisoned wallets" to render all BTC (or partial BTC) that left a verboten wallet after a given time stamp. This would work, of course, only for users that use the blacklist enabled version of the software... but I believe enough people find NK's position sufficiently dangerous to warrant adopting this alternative code base to at least GREATLY DEVALUE these "tainted" BTC. This type of change begs two interesting questions:
1) How are the list of poisoned wallets managed? On the micro level, I believe the choice of banned wallets should be up to the individual BTC user, but most users won't want to manage such a tedious list. I expect users would want to defer this responsibility to one or more "accusation bodies" each with their own accusation, conviction, poisoning and appeal processes, all blockchain protected (outside the BTC blockchain)... I expect users would sign up for these poisoning feeds in one of two groups: 1) organizations that uphold the users moral convictions, or 2) organizations that seek out a superset of poisoned wallets, for those that want to ensure any BTC they receive are untainted, and good for other transactions. I believe most users would be most interested in aggregators (#2), but enough users would also add original accusers (#1) to make such a system plausable.
2) Tainted BTCs wouldn't be completely valueless, as some users may still accept them, so differently tainted BTCs would trade at their own distinct prices, which may be an interesting opportunity for cryptocurrency exchange companies.
What do you think?
Loren Osborn
The sanctions are on goods and movement of currency. Using bitcoin doesn't make goods magically move (actually quite the opposite, you'll find most companies don't accept it). Using bitcoin also doesn't magically increase the amount of currency trade that has been sanctioned. The money needs to physically move, having bitcoins doesn't make that happen unless you also have bitcoin exchanges in direct violation of the sanctions.
Stupid article is stupid.
Define "preemptive" attack?
When Kim launches another ICBM over Japan, is that an act of war and can we respond or not?
Launching an ICBM over a state=provocation.
Launching an ICBM at a state=act of war.
The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
Liberty Dollar is dead.
Assuming that NK has channeled most of its BTC stash through a small number of wallets, and that most of them may be identified by NK's spending patterns, I think this is a good case for implementing "poisoned wallets" to render all BTC (or partial BTC) that left a verboten wallet after a given time stamp.
There is no way this will happen . We may not want bitcoin to be used by N Korea but adding blacklists, taint , and reducing fungibility/privacy is unacceptable. Fungibility is more sacrosanct than the 21 million limit in bitcoin and we have already made great changes with privacy that are starting to be used now to make any sort of chain analysis impossible.
they didn't even want to know why my IP address is a continent away from my shipping address...
And why would they?
It would completely spoil the idea of using the internet.
Sadly the streaming services did not get that yet.
Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
D-Marks are actually still circulating in "the Ost Block", even as you can not simply convert them into Euro anymore since a few years.
Same for Franc in north Africa.
Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
It takes something legitimate backing a currency to give it value.
No it does not.
If we go together to a dinner, I can not pay my 25$ bill, and you step in, I write you an "I O U 25$, signed by Angel". And if it happens to happen that you run out of money and ask a friend, give him "our" "IOU" and he knows me and accepts it: that is money.
No one is backing it. Our common friend just trusted you/me the same way you trusted me.
But it is a kind of bad idea to hand over "I O U" cheques without kind of agreement of the issuer (that was me), could lead to lots of arguments :D
Anyway: money does not work the way you think. I suggest the books: "Money of the future" and "The future of money".
Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
From their point of view, the entire world is trying to crush them, and certainly has their head pinned.
Quite insightful!
Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
If THEIR TRADING PARTNER implements sanctions they are required to, then they will not accept Bitcoin either ---- Also, if you want your trading sanctions to work properly when not all merchants agree to them, anyone with a clue knows you need an embargo or monitoring in place and means of enforcing your sanctions too; a nice thing about Bitcoin is it's traceable, thus more transparent to monitoring than cash transactions.
North Korea doesn't have the least bit of trouble obtaining US-Dollars. Also, North Korea has been known to counterfeit US Dollars. Even if they didn't.... if NK can get overseas suppliers to transact in bitcoin, they can also get them to transact using other media such as Chinese Renminbi, they just need to exchange through any of many countries either not recognizing or not aggressively enforcing the sanctions.
It is illegal for anybody except for the Federal Government to issue or coin a currency. If it's just tulip bulbs or some other item for speculation like the misnamed 'cryptocurrencies' it is not against that law, as we see in the current circumstances. Buy and sell your beanie babies, charizard cards, and cryptocurrencies as you like, as speculative items. Local and regional jurisdictions that have tried to introduce currencies have been shut down. There is plenty of legal precedent.
Ok, so bitcoins are no currency, what does it change?
"Oh, I sell this thingamajig here for thismany dollars. Or I'd also trade it for thatmany bitcoins".
See? It's no currency. It's barter trade. What did you accomplish as the government? Nothing. Well, maybe that it's harder to tax.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Money has value because someone else gives you something in return for it. That's basically the main reason money has purchasing power. That there is a government backing it and that there is an economy representing its value is for most people already too esoteric a concept to grasp. They accept USD, EUR, GBP, AUD and CAD in return for their goods and services because they in return expect to pay goods and services with that money.
It doesn't take anything legitimate to back a currency. What it takes is a market to back it. If you need cryptocurrency to get your files unlocked and if having some is the only way to do so, you suddenly have a lot of people who would want it, and would part with legal tender to get it. Now imagine what happens if the big druglords suddenly get the idea that they accept cryptocurrency, and only cryptocurrency, as payment for their dope.
They would start to control not only the supply but also the demand. They would control the cryptocurrency and they would also create a huge market for people wanting it. Is that what you want?
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
"It is illegal for anybody except for the Federal Government to issue or coin a currency."
You better go tell that to Chuck E. Cheese. You're still swapping dollars for tokens, and those are definitely coins as they work in the coin-acceptors of arcade machines.
Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
Make it illegal to starve, and punish anyone who does starve.
“Common sense is not so common.” — Voltaire
Huh? You can exchange any amount of D-Marks to Euros at all branches of the Deutsche Bundesbank.
The only bills and coins no longer honored are ancient and you probably can get more from collectors anyway.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
"BTC really only has value because the BTC user base has formed a consensus that it does"
You pretty much just described very succinctly every currency that exists.
Even the last part about tainted BTC's pretty much describe those currencies that go through hyper inflation due to printing of money to the point of worthlessness.
Only China can reign in North Korea, and they're not going to unless it's really costing them. China currently assists NK and they will continue to do so regardless of what they say so long as their relationship with western countries isn't seriously threatened. It keeps the rest of the world playing nice with China to try to get them to help. Wrong approach. Drastically slash imports to the US from China. US consumers will suffer a bit from higher prices and from shortages (read "severe price spikes") in the short term as other suppliers ramp up. China will get the message and do something serious about NK. But the reason that's not done is because those controlling the US are not about to threaten the income of themselves and their best buddies, who profit from the overseas production and imports. So in a very real sense, the Kim Jong Un problem is the result of US (and western Europe) billionaires putting profits ahead of the safety of everyone and everything.
It's perfectly legal. It just won't be legal tender. You can pay any US government anything you owe in dollars. Courts award judgments and impose fines in dollars. Debts are accounted in dollars. You're free to make any deals you like that don't involve illegal actions.
"When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
You could.
Now you need an appointment and fill out a paper why you come so late with changing them.
The period where you simply could go to any bank to exchange DM for Euro, is over since over ten years.
Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
You fill out a form and send it. No need to justify anything.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.