Bitcoin is Great for Criminals. It’s Even Better for Law Enforcement.

When the indictment of Russian intelligence officers for interfering with the US election broke, the recriminations were swift. Not only had the 12 allegedly hacked the Democratic National Committee, but they’d had the temerity to do so using servers paid with cryptocurrency. When politicians and mainstream media began finger pointing, they had only one culprit to blame: bitcoin.

Congressman Emanuel Cleaver II wasted no time in castigating the “crypto industry” for its role in the DNC hack. The fact that Russians had apparently used bitcoin to cover their tracks was of more concern than the numerous other failings that the indictment revealed, like the inability of Democrats to detect basic phishing attempts, or of DNC admins to detect the X-Agent malware that was installed. No, the biggest takeaway from all this was that bitcoin had facilitated one of the gravest nation state-orchestrated crimes in years.

As the detailed indictment against the Russian dozen reveals, however, bitcoin didn’t exactly enable the accused to cover their tracks. In fact, despite the extraordinary lengths they had gone to, bitcoin left an indelible trail that led right back to Russia, which the blockchain had gift-wrapped and handed to US investigators. The dozen accused purchased BTC on P2P exchanges, as well as mining the cryptocurrency themselves to pay for web hosting of dcleaks.com, and a VPN with which to operate the Guccifer 2.0 Twitter account. But this didn’t stop US officials from reconstructing the attackers’ every move, aided by the permanent record that the blockchain provides.

Chainalysis is a blockchain forensics company that is detested by many bitcoiners for its willingness to work hand-in-glove with law enforcement, helping to convict cryptocurrency users of victimless crimes such as the purchase of narcotics for personal use. Its co-founder, Jonathan Levin, despatched a trademark anti-bitcoin soundbite for CNBC, stating: “The fact that cryptocurrencies are global and real time means that you might only find out about these things after the fact. We need to think about the responsibilities that we all have in a world where payments move seamlessly across borders in the blink of an eye.”

Meanwhile, Wired, a publication that once mined 13 BTC and then inexplicably destroyed the wallet, issued a typical hit piece against bitcoin in its reporting of the hack. It began: “Bitcoin is a pain to spend. It is energy-guzzling, perilously slow and, with the prospect of dazzling returns (at least until recently), perhaps best to HODL ‘til you retire. But Bitcoin can count at least one group of spendthrifts among its users: Russian hackers accused of hacking in the 2016 election.”

Wading through the hyperbole, one could be forgiven for thinking that bitcoin had single-handedly phished John Podesta, hacked the DNC, brought down the Democrats, and swung the election for Trump.

Source: Bitcoin.com

Image: Pixabay

Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and / or services. This press release is for informational purposes information does not constitute investment advice or an offer to invest.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *