Feds arrest couple, seize $3.6B in hacked Bitcoin funds • Hacker News Board

Re: Feds arrest couple, seize $3.6B in hacked Bitcoin funds

#131

Post by iskander » Tue, Feb 08, 2022, 6:00 PM UTC

AlexanderTheGr8 wrote: post #120

iskander wrote: post #95

Earlier quoted context omitted.

They mention chain hopping and privacy chains. Maybe they slipped up using ZEC and made some of their transactions public?

Could be. But even if some of the transactions became public, it should be fine as long as the end transactions (crypto -> fiat) is private, right?

There are very few exchanges left which don't require KYC and even then the real final step is cashing to some kind of bank account. I don't think crypto->fiat privacy is possible beyond a certain level of wealth.

Re: Feds arrest couple, seize $3.6B in hacked Bitcoin funds

#132

Post by deepsun » Tue, Feb 08, 2022, 6:00 PM UTC

Should I expect price drop once feds start to sell it? Or they'll just destroy the keys (keeping the money invested forever).

Re: Feds arrest couple, seize $3.6B in hacked Bitcoin funds

#133

Post by nerdwaller » Tue, Feb 08, 2022, 6:01 PM UTC

BobbyJo wrote: post #107

tsimionescu wrote: post #100

Earlier quoted context omitted.

Well, the police had a search warrant, so the police could have found them if they had had them in their possession anyway. Sure, they could have destroyed them, losing the money but maybe not getting arrested?

When a few billion is at stake, you think they'd make the effort to memorize the keys. Or at least encrypt them.

The file the feds found had 2,000 addresses - so there's a non-trivial amount of 12 word phrases to remember.

Re: Feds arrest couple, seize $3.6B in hacked Bitcoin funds

#134

Post by twox2 » Tue, Feb 08, 2022, 6:02 PM UTC

throwaway110535 wrote: post #59

twox2 wrote: post #21

Earlier quoted context omitted.

Are you suggesting that's a light punishment?

Given that folks have been given longer punishments for stealing less, yes. Granted, ianal and I acknowledge that things come into play like repeat offenses, etc.

At the same time, though, folks get lighter sentences for rape and murder. IMO there's nothing 30,40,50+ years can do to a person that 25 can't.

Re: Feds arrest couple, seize $3.6B in hacked Bitcoin funds

#135

Post by mittermayr » Tue, Feb 08, 2022, 6:02 PM UTC

Sometimes I wonder what the chances are that certain (highly privileged) staff at Google (or other similar data storage or e-mail companies) could run a query across Google Drive looking for a specific public key. Much like a malware scanner, just looking for "a key", just to see if there is an account matching. Unofficially, of course. A rogue employee perhaps. And, what if, in such a case, the employee (in the best of cases) reports the person anonymously, or in other cases, takes off with the private key if also found.

Or does anyone know if the data is so encrypted that nobody at Google can override? I would highly doubt that, looking at US law enforcement pressure. And I am sure there's a million and one barriers and access requests blocking raw queries, but technically...

Of course, a hefty hefty conspiracy-laden thought, but I just found myself curious if that would even remotely be an option.

Re: Feds arrest couple, seize $3.6B in hacked Bitcoin funds

#136

Post by jrav » Tue, Feb 08, 2022, 6:02 PM UTC

Probably stupid question: Why not just exchange it to zcash or monero or some other coin that hides transaction details? Then you can send it to a new wallet; theoretically 100% untraceably.

Is this not a valid approach?

Re: Feds arrest couple, seize $3.6B in hacked Bitcoin funds

#137

Post by knorker » Tue, Feb 08, 2022, 6:02 PM UTC

gruez wrote: post #58

knorker wrote: post #42

Earlier quoted context omitted.

> Most cryptocurrencies are designed such that the concept of "returning" stolen funds is not really meaningful. Which is why these things are not features, but bugs, in cryptocurrencies. The core design principles of cryptocurrencies are actually bugs, if you think about it.

>The core design principles of cryptocurrencies are actually bugs, if you think about it. It's a system designed around a different set of trade-offs. Calling a bug doesn't really make sense. For instance, using full disk encryption means that you lose all your data if you forget your keys. That's not an issue if you use icloud (which presumably has an account recovery process). Based on this, can you say that the "c…

Good point.

It's a bug to the vast majority of people, but that doesn't make it a bug to ultralibertarians.

It's a bug if the goal is actually to have everyone adopt it.

Re: Feds arrest couple, seize $3.6B in hacked Bitcoin funds

#138

Post by paulpauper » Tue, Feb 08, 2022, 6:03 PM UTC

AlexanderTheGr8 wrote: post #64

> “After the execution of court-authorized search warrants of online accounts controlled by Lichtenstein and Morgan, special agents obtained access to files within an online account controlled by Lichtenstein,” the press release said. “Those files contained the private keys required to access the digital wallet that directly received the funds stolen from Bitfinex, and allowed special agents to lawfully seize and rec…

Tornado only works for eth. they would need a bridge.

they were done-in by I am assuming to be a weak password, enough entropy would have made it uncrackable

Re: Feds arrest couple, seize $3.6B in hacked Bitcoin funds

#139

Post by [deleted] » Tue, Feb 08, 2022, 6:03 PM UTC

AlexanderTheGr8 wrote: post #105

tsimionescu wrote: post #100

Earlier quoted context omitted.

Well, the police had a search warrant, so the police could have found them if they had had them in their possession anyway. Sure, they could have destroyed them, losing the money but maybe not getting arrested?

vitalik (ethereum founder) used an interesting system. He split the key in 2. Wrote both on paper. Gave 1 paper to family and kept the other. Even if the police raid him (hypothetically), they cannot raid the houses of his family and friends at the same time This way the police or anybody else cannot get your private key.

[deleted]

Re: Feds arrest couple, seize $3.6B in hacked Bitcoin funds

#140

Post by AlexanderTheGr8 » Tue, Feb 08, 2022, 6:03 PM UTC

Dwolb wrote: post #124

AlexanderTheGr8 wrote: post #117

Earlier quoted context omitted.

I agree. But if not for privacy, why use crypto at all? Even bank accounts are reasonably private, if you are not doing anything considered suspicious by society. Also, with mixers such as tornado_cash, laundering money is , sadly , pretty trivial.

Speculation, self-sovereignty, ease of use/trade/leverage/exchange

> Speculation

You can do that by owning crypto. No need to use it.

> Self-sovereignty

Majority people use centralized exchanges, which regularly control transactions.

> Ease of use/trade/leverage/exchange

Fiat banking is much easier to use than crypto. It's also faster. Now everyone uses 1-tap payments. Crypto transactions are more complicated than that. They also take longer. Also are bad for the environment (not as bad as media portrays, but bad nonetheless)