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$7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved

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Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved

#231
post #184

Earlier quoted context omitted.

This fails to account for the fact that IRS currently (and maybe this changes in the future) has a hard time doing serious audits on any significant amount of wealthy people; and that the agency has pretty much been gutted over the years. [0] https://www.propublica.org/article/how-the-irs-was-gutted [1] https://www.propublica.org/series/gutting-the-irs [2] https://www.gq.com/story/no-irs-audits-for-the-rich

all it takes is for one president in 2030s to create a new branch of gov that pays Google style salaries. would attract the best and brightest to write some powerful tools for all that, no?

That’s the big lie. You just have to pay enough and have a process.

I’ve done consulting work for tax agencies. They are full of smart people and are very good, as most government agencies are, at implementing and consistently delivering processes.

The problem at the IRS is that a group of people with the ability to influence the purse strings have signed pledges and dedicated careers to make the IRS as ineffective as possible. I have a former associate who is a specialist in a few arcane areas of tax law and has the ability to basically look at the books of any company and figure it out in a day or two. He left because systematic cuts meant that he was one of a half dozen specialists in the country (there were 200+ when he started), and ended up traveling all across the country to testify at trials as an expert.

Look at the military as an example of how any government agency works. Billions are spent on weapons systems development with the best and brightest minds. In the field, the applied work is done by 19 year old kids, roughly sorted into an occupational category by IQ.

Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved

#232
post #218
post #216

Earlier quoted context omitted.

This makes me wonder, was pay competitive for rocket scientists during the space race, or was the mission so compelling that nobody cared if they were making less than they might have at a defense contractor?

A friend of mine is an electrician, an in-demand skilled job. He can make +/- 10% working for the government directly, at Lawrence Livermore, or in the private sector. Each has tradeoffs like how interesting the work is or the hours, but in the end the government isn't really less competitive. Now imagine Facebook steps in and wants to hire all the electricians and is willing to pay $750k/yr. Obviously the entire sys…

If Facebook could create a local monopoly or competitive advantage to pay electricians $1M/yr, they would to deny the skills to their competitors.

Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved

#233

Earlier quoted context omitted.

IRS agents are easy to calculate pay. Base living wage ($70-$90k) + 1-5% of each amount recovered Incentivize pursuing the biggest evaders, and the problem may solve itself.

As other commissioned jobs will show you, like in real estate, that’s only an incentive to close high volume easy deals, not move mountains to chase hard deals. Your idea would likely just spur a movement to throw the book at normal working people to extract the most from easy targets, like self-employed misfiles.

Admitted, without much data to back myself up, I think I disagree. Real Estate has a tier of broker that handles the huge deals too.

Right now the IRS are spending too much time going after the low hanging fruit, which is hurting the little guys. The department has been gutted and understaffed, so they are trying to hit the easy less sophisticated targets.

A few $1 Million settlements could more than double their salary for the year. Even if the bonus was split between a team, a few whales would be a boon.

Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved

#234

Earlier quoted context omitted.

They just shuffle coins around. Still possible to track. It's also obvious to everyone watching that the shuffling service was used. Exchanges have already started to refuse coins that passed through these services. They might as well be tainted. The real solution is to drop bitcoin and use better technology. Monero looks like the best option right now. Private transactions, concealed amounts, fungibility, low fees a…

> The real solution is to drop bitcoin and use better technology. Walk into WalMart with cash and buy a prepaid gift card. Voilà. And the best part: it works literally everywhere. Both the buying and the using. Unlike flavor-of-the-week crypto. Though, let's be real for a second, the ways to screw up from this point are many and varied. Accidentally use your home IP address to make the purchase? Oops. Did the naughty…

It’s a pretty obvious strategy that is scrutinized already. Try buying $500 gift cards routinely,

Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved

#235
post #157

Earlier quoted context omitted.

Meaningless unless they fix the BTC price of the Tesla

Not meaningless for taxes

How so? If I bought a Tesla with Bitcoin apparently I'd be forced to pay short-term capital gains even though I'm using it as just a payment currency. Doesn't sound like a good deal tax-wise. If Tesla gave me an equivalent discount on the BTC price though, that would change the game.

Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved

#237
post #219

Earlier quoted context omitted.

None of these fines are about laundering money. Also, showing these fines is a long way from "the most law breaking entities". I do believe Wells Fargo got in trouble for helping launder money - and they spent a LOT of money to help fix it.

https://www.bloomberg.com/news/articles/2021-03-05/ubs-may-u... https://www.theguardian.com/world/2011/apr/03/us-bank-mexico... https://www.bbc.com/news/business-54597256 I could keep Googling but that should cover your complaints about laundering money.

Forgive my vagueness- I wasn't complaining that banks don't launder money - only that the original links didn't support that thesis. You have rectified that.

Do you also claim that banks are the biggest thieves?

Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved

#238
post #58
post #30

Earlier quoted context omitted.

You could use also do that to embarrass/blackmail politicians or other prominent people. Imagine the threat "You either do what I want or I'll send you 1 million dollars" :)

What politicians accept Bitcoin as donations?

How else do you suppose they pay for their crimes?

Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved

#239

Is that money trapped in the system? The moment they sell to USD that account is now linked to a real person no?

There was a story not long ago a out someone paying a very high ETH amount for a simple ethereum transaction. Apparently with the right technical combination it is possible to guarantee that your miner will receive the mining fee. This makes it a good option for laundering.

Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved

#240
post #187

Earlier quoted context omitted.

Banks are the most law breaking entities in the United States. They constantly have to make enormous settlements for the insane number of laws they break. These are just the settlements for Bank of America: https://www.fool.com/investing/general/2014/10/01/the-comple... A better summary wouldn't be "they make plenty of money legally." It would be they make plenty of money illegally after paying the settlements.

This is what I'm saying. The banks are more than happy to pay fines and add regulations to their practices because they don't want the government to shut them down. Coinbase will be no different. They make too much money to have any principals around standing up for a "Permissionless and Decentralized financial system"

What? Banks lobby heavily against regulation and their lobbyists write the regulations that do exist. They also often commit crimes themselves, are accessories to others, and work in grey areas. This seems well known.
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