DHS shuts down Mt Gox's Dwolla account, issues "seizure warrant"

[ronpaulfollower999]

I was using Bitfloor, but their European bank account got shut down. I fortunately was able to convert all my USD to BTC literally SECONDS before trading halted on that exchange, and transfered the coins to another exchange.

BTC-E is too difficult to get USD on.

Bitstamp looked pretty good. I haven't really tried to get USD on there, but the process looks simple enough. Unfortunately, I believe it's cash deposit at a bank.

 

[ronpaulfollower999]

It also appears that Coinbase has fixed the supply issues with buying Bitcoins. But unfortunately, it is a directly link to your bank account.

 

[Peace&Freedom]

So, use a secondary or throwaway bank account.

 

[muh_roads]

So, use a secondary or throwaway bank account.

How does this hide personal information?

 

[muh_roads]

I was using Bitfloor, but their European bank account got shut down. I fortunately was able to convert all my USD to BTC literally SECONDS before trading halted on that exchange, and transfered the coins to another exchange.

BTC-E is too difficult to get USD on.

Bitstamp looked pretty good. I haven't really tried to get USD on there, but the process looks simple enough. Unfortunately, I believe it's cash deposit at a bank.

If you are trying to avoid direct wire transfers to an exchange...

You can use Ripple like Dwolla and from there get to BitStamp. https://ripple.com/

Or you can still use Dwolla to fund Gox through BitInstant. https://www.bitinstant.com/

 

[kpitcher]

This isn't the first problem dwolla has had with funding bitcoins. They had issues with Tradehill a few years ago (Which used to be the 2nd largest exchange before they closed). Dwolla got a big bump with their dwolla <-> tradehill clients and took a hit when that broke down. Buying semi-anonymous coins with a linked ACH account seems silly anyways.

I also don't agree with the topic title.

 

[Bruno]

Interesting. Dwolla founders from here.

 

[bolil]

Woah, wait, are you saying that tyrants are being tyrants.
Clever people only go so far.

 

[dancjm]

I'd really like to know what premise was used to do this.

Competition.

 

[idiom]

Structuring transfers with throwaway accounts is illegal in the U.S.

If DHS ever does take down mt Gox or even just borrows their servers for a while the will probably have enough data to tag and identify the chain of custody of all buttcoins currently in circulation.

 

[Petar]

If DHS ever does take down mt Gox or even just borrows their servers for a while the will probably have enough data to tag and identify the chain of custody of all buttcoins currently in circulation.

Is this an educated opinion based on knowledge of cryptography, or are you just speaking out of your own personal "buttcoin"?

 

[idiom]

My knowledge of cryptography is fast and loose. The best attack vector for bitcoins would be a massive trove of transfers. Then you dont need to crack anything just correlate known data points.

With a few warrant free requests to btc accepting retailers and a serious hectare sized computer you know where all the money is going.

It would be worth it for the NSA just for training.

The dataset is still pretty small.

 

[Petar]

My knowledge of cryptography is fast and loose. The best attack vector for bitcoins would be a massive trove of transfers. Then you dont need to crack anything just correlate known data points.

With a few warrant free requests to btc accepting retailers and a serious hectare sized computer you know where all the money is going.

It would be worth it for the NSA just for training.

The dataset is still pretty small.

I still think you are speaking out of your personal "buttcoin".

 

[Crystallas]

My knowledge of cryptography is fast and loose. The best attack vector for bitcoins would be a massive trove of transfers. Then you dont need to crack anything just correlate known data points.

With a few warrant free requests to btc accepting retailers and a serious hectare sized computer you know where all the money is going.

It would be worth it for the NSA just for training.

The dataset is still pretty small.

The bitcoin network surpassed the computational ability of the NSA 100 fold earlier in the year at algorithmic hashing. The fact of the matter is, with every NSA system, they would (in best estimates for them) only consume about 9-7% of the network in theory. Yes, that is how big the bitcoin network has grown worldwide. Some reports have even claimed with some sketchy(but not far off) math that the BTC network's power is also greater than the top 300-500 supercomputers in the world, combined.

 

[idiom]

The bitcoin network surpassed the computational ability of the NSA 100 fold earlier in the year at algorithmic hashing. The fact of the matter is, with every NSA system, they would (in best estimates for them) only consume about 9-7% of the network in theory. Yes, that is how big the bitcoin network has grown worldwide. Some reports have even claimed with some sketchy(but not far off) math that the BTC network's power is also greater than the top 300-500 supercomputers in the world, combined.

They don't have to crack anything. Just correlate open datasets. Its an accounting forensics problem not a cryptographic one.

 

[Peace&Freedom]

How does this hide personal information?

Depending on the type of throwaway "bank account," you can put pseudonym info on it. A couple of reloadable debit cards (Rush card, ACE Elite, etc) include a 'bank account' for direct deposit operations, but don't have a tight verification process on the online application. You could (if you were determined) get a card using pseudonym name/address/SSN info on it, and use that account to connect to the Bitcoin exchange account. Or, you could just get your cash converted into a Liberty Reserve account, and buy Bitcoin through Liberty Reserve.

 

[brooks009]

Whats wrong with buying bitcoins with a legitimate bank account?

 

[ronpaulfollower999]

Whats wrong with buying bitcoins with a legitimate bank account?

Nothing, if you want the government to know you own Bitcoins.

 

[LibertyRevolution]

Whats wrong with buying bitcoins with a legitimate bank account?

People who use bitcoins want to be anonymous...

The entire idea behind bitcoin is that it is a way to transfer money untraceable.
Bitcoins are used for tax evasion, money laundering, funding terrorism, or drug trafficking.
Which is why a bunch of us think it is going to be shut down by the feds, and why we won't touch it with a 10 foot pole..

 

[FSP-Rebel]

People who use bitcoins want to be anonymous...

The entire idea behind bitcoin is that it is a way to transfer money untraceable.
Bitcoins are used for tax evasion, money laundering, funding terrorism, or drug trafficking.
Which is why a bunch of us think it is going to be shut down by the feds, and why we won't touch it with a 10 foot pole..

Not every BTC holder wants to be anonymous. Many of us just want out of USD and the bankers stranglehold over it and other currencies. I never used Dwolla and had heard negative things about the experience using it, bitinstant still is the simplest and fastest way to convert. The first USA BTC forum is this weekend in San Jose and I'm sure this issue will be addressed.