Re:Someone just made a $147,239,214 Bitcoin transfer
by Karunamon on Sunday November 24, 2013 @02:41PM
(#6790770)
How do you prove that circulated coins are the product of a mixing operation and not just normal transactional flow?
Someone mines coins and gives coins to a guy who gives coins to a guy who gives coins to a guy (repeat n times) who gives coins to you, and every link in the chain is following best practices by generating new wallets for each transaction, how would the adversary prove that you're doing something untoward (and since we're discussing law at this point, beyond a reasonable doubt?)
Re:Someone just made a $147,239,214 Bitcoin transfer
by dllthomas on Monday November 25, 2013 @06:41PM
(#6797932)
This is no different than laundering cash, except that there is more information about the actual transaction flow.
Re:Someone just made a $147,239,214 Bitcoin transfer
by Karunamon on Tuesday November 26, 2013 @12:39AM
(#6799368)
You didn't really answer my question. Assume you're in some position of authority. With the knowledge that bitcoin wallets can be generated out of thin air, how do you prove that a given transaction chain was the product of a mixing operation and not the product of normal transactional flow?
Re:Someone just made a $147,239,214 Bitcoin transfer
by dllthomas on Tuesday November 26, 2013 @11:22AM
(#6802232)
Physical wallets can also be created out of thin air. I'm not a forensic accountant, so detailing precisely how is not in my area of expertise, but we successfully prosecute people for laundering cash, and bitcoin only has more information, more accessible than cash. I am not saying it can be done with just the block chain, but the block chain is a piece of evidence that is far more easily accessible than a criminal enterprises' individual ledgers.
Either way you now have enough evidence to raid their PC to check for further laundered funds and generally make their lives miserable. When people complain just find a fraction of a BTC that was used at some point in the past to fund the social demon of the day (child porn, terrorism, drugs, sex trafficking, etc.) to justify it.