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

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

#881

Earlier quoted context omitted.

There's a lot of evidence in the statement_of_facts however it's unclear how much of it can only be reconstructed with the private keys. Interested parties should really look to what was known to grant the search warrant. https://www.justice.gov/opa/press-release/file/1470186/downl...

They don't usually give details of how they caught them, because the next bad-actor will read that to know their tactics. Search warrants are given on reasonable doubt . When it comes to cryptocurrencies, the feds have reasonable doubt on everyone. So it is always possible for them to get a search warrant. I emphasized private keys, bec without them, no matter how much doubt the feds had, they couldn't prove anything…

> When it comes to cryptocurrencies, the feds have reasonable doubt on everyone. So it is always possible for them to get a search warrant.

Any evidence on this?

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

#882
post #878

Earlier quoted context omitted.

> I'm going to assume you're from one of the countries mentioned below? It's my understanding most countries with Muslim majority do not centrally enforce Zakat. Today, many Muslim countries are not in a good shape unfortunately, and that's due to several reasons beyond the scope here. I'm referring to how things are required by Islam, and how things were done historically when Islam was actually implemented. Today I…

You've said If Islam is properly applied, there would not be any meddling and Zakat would be applied appropriately. I guess you have more faith than I do that a human vested with these large sums will apply it appropriately. Humans can be greedy, corrupt, and clumsy and may not practice the word of the Quran accurately. They could simply make bad mistakes, without any bad will. Having centralized access to large sums…

> I guess you have more faith than I do that a human vested with these large sums will apply it appropriately.

I agree that humans can be greedy, etc. But that's why we have a judicial system. When you look at history, the Islamic scholars took their faith extremely seriously. Their accounts and biographies are not something you'd find in Western texts, but those exceptional people truly did exist. And because of them, we had things like the Islamic Golden Age.

The governments today have way more money on their hands don't they? Especially with the insane taxation rates we see. You allude to this point when you mention secular welfare systems. But history shows otherwise when Islam was applied.

> Umayyad had a variety of religions of persons overseen by their caliphate

Islam was the dominant religion, and the majority of the population were Muslims. The non-Muslims had to pay Jizya (limited to able men, i.e. not women, children, old men, or religious priests).

One of the categories of people who are eligible to receive Zakat, are those whose hearts are inclined toward Islam. Other than that, I don't think non-Muslims receive it. That being said, poor and needy non-Muslims are definitely eligible for charity (Sadaqah), and it is the responsibility of a functioning government to ensure that its population is well taken care of. Islam guarantees the rights of non-Muslims, and is very strict about it.

> I'd also be interested in seeing the citation that poverty didn't exist under this caliphate.

I didn't claim that no poverty existed in the entire Caliphate. As you know, the Caliphate spanned several regions and districts. I mentioned the Iraqi district, but I came across this question[1], which mentions that the mayors of the Libiyan and Tunisian regions wrote to Umar ibn AbdulAziz that they could not find a needy person to give them Zakat, so he responded to give it to the poor among the Jews and Christians. They replied that still no one took it, and they were no needy among them, so Umar replied to leave it in the market for anyone to take as they need. When still no one took it, Umar ordered to purchase slaves and free them.

I'll have to validate the authenticity of this specific account, but the notion that during Umar's rule, in certain districts there were no poor people left to accept Zakat is established.

> If I wanted to enforce Zakat via inflation, I would mandate people to hold their money in bank

Ah I see. It's prohibited in Islam to hold someone's money against their will, so there goes that :)

[1] https://islamqa.info/ar/answers/182393/%D8%AD%D9%83%D9%85-%D...

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

#884

Earlier quoted context omitted.

> Seems like he could have done more to distance himself. Bitcoin's public ledger makes transactions into prosecution futures. This is why it's such a poor choice for revolutionaries and funding the marginalized. You leave a permanent indelible public record in posterity that will in the course of time be de-anonymized, automatically, and traced back to you.

Is it illegal to sell your artwork at an auction, and a criminal happens to be the one to buy it? I honestly don't know. is the onus on an artist or on an "auction house" to vet buyers. If post sale it turns out the money was fraudulent, does the artist need to pay it back? In crypto terms. You the artist simply put a NFT up for auction at OpenSea. You the scammer happened to purchase the artwork on OpenSea. However…

Melania Trump recently did this to her NFT.

https://www.reddit.com/r/CryptoCurrency/comments/sohojt/mela...

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

#885
post #510

Earlier quoted context omitted.

$4 billion has got to buy an awful lot of compute time, but still, how did they decrypt the file?

Is it me or should he have literally just gotten a hardware wallet, transferred everything to that account, then burned the old key? Of course that txn would show up on-chain, but if you don't have possession of the private key for the first account, and no digital device has ever "seen" the hardware account then he would've been fine. This is assuming the key piece of evidence was his private key, and he wouldn't ha…

There really is no such thing as a "hardware wallet."

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

#886
post #804

Earlier quoted context omitted.

Honestly don’t know why people don’t AES/GPG encrypt the keys and send a message to alt.anonymous.messages. That’s 30+ years of storage for free.

Why couldn't they just use a brain wallet on an offline device with no internal storage. Keep a hand written copy of the generated passphrase laminated in some plastic in some fake plaster rock under a tree in a wood or something.

The idea is this would survive a search and potential jail term.

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

#887
post #442

Earlier quoted context omitted.

This depends on the key derivation function used. PBKDF2 or BCrypt with strong enough difficulty factor makes even fairly short passwords difficult to crack. On the other hand, a straight SHA-256 hash method can be broken insanely quick with fairly long passwords.

>fairly long passwords how long are we talking?

I never really did the math before but I whacked something together real quick in Excel. At $0.30/THash BTC we can come up with some cost expectations for password lengths. Here I will use a 74 possible character password using 26 upper and lower case letters, 10 numbers and 12 symbols. Totally random of course. Using (Possible Chars ^ Password Length) as the number of combinations and guessing we will find our answer at about %50 of our guesses. (See! Super rough)

With SHA-256 it takes about $21 to crack a 6 character password.

$1500 to crack 7 characters.

$108,330 to crack 8 characters.

$7.8 million to crack 9 characters.

$561 million to crack 10 characters.

$40 billion to crack 11 characters.

$3 trillion to crack 12 characters.

$200 trillion to crack 13 characters.

Edit Note: BTC is kinda expensive per hash right now. Usually this would all be cheaper. Past 14 characters it could be 1 cent and still outrun the usual US budget for a couple years.

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

#888
post #882

Earlier quoted context omitted.

You've said If Islam is properly applied, there would not be any meddling and Zakat would be applied appropriately. I guess you have more faith than I do that a human vested with these large sums will apply it appropriately. Humans can be greedy, corrupt, and clumsy and may not practice the word of the Quran accurately. They could simply make bad mistakes, without any bad will. Having centralized access to large sums…

> I guess you have more faith than I do that a human vested with these large sums will apply it appropriately. I agree that humans can be greedy, etc. But that's why we have a judicial system. When you look at history, the Islamic scholars took their faith extremely seriously. Their accounts and biographies are not something you'd find in Western texts, but those exceptional people truly did exist. And because of the…

>The governments today have way more money on their hands don't they? Especially with the insane taxation rates we see. You allude to this point when you mention secular welfare systems. But history shows otherwise when Islam was applied.

Yes and I think the level of money and trust the government holds is a source of massive failure. I think those practicing Islam should be free to distribute their Zakat directly to poor or their select organizations that aid poor, rather than being forced to give it to a central authority. Otherwise one central authority has a monopoly on distribution of Zakat, which can lead to many inefficiencies and failures.

>One of the categories of people who are eligible to receive Zakat, are those whose hearts are inclined toward Islam. Other than that, I don't think non-Muslims receive it. That being said, poor and needy non-Muslims are definitely eligible for charity (Sadaqah), and it is the responsibility of a functioning government to ensure that its population is well taken care of. Islam guarantees the rights of non-Muslims, and is very strict about it.

Again I think it's wonderful that people are offered this kind of charity. I'm a little skeptical that the system under the caliphate could have prevented all poverty or that the poverty that remained wasn't solved by collecting Jizya from non-muslims and then distributing Zakat only to those whose hearts are inclined toward Islam. I admit I do not understand much of the history of Muslim Caliphates or nations, so I'm unable to really ascertain where islamqa.info gets its source from, but I doubt we have very good record of income distributions under this caliphate. But hey, I don't have any proof that there were poor, so maybe it's true.

I do thank you for digging up your source in this matter, and it is interesting to note some points on records of history.

> Ah I see. It's prohibited in Islam to hold someone's money against their will, so there goes that :)

A reasonable prohibition, one I extend to involuntary taxes and forced centrally collected charity.

Thank you for your viewpoint here, as it's one I rarely see living in the west.

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

#889
I really don't get why they didn't encrypt their data. It's very easy nowadays and doesn't even degrade performance much (depends on algorithm used though). Especially when you place highly critical data in a cloud. Maybe they fell for the saying "Bitcoin is anonymous" - which it isn't, rather quiet the opposite.

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

#890
post #873

Earlier quoted context omitted.

According to https://en.m.wikipedia.org/wiki/List_of_countries_by_total_w... , the total wealth of the US in 2021 (which is what I'm supposing would be subject to the inflation Zakat) was $126,340B, 2.5% of which is $3,158B. According to https://www.usgovernmentspending.com/welfare_spending_analys... , in FY2021 welfare (not including Social Security or Medicare, which are for retirees, but including Medicaid) was $2…

Different types of wealth have different Zakat values, and not all wealth is subject to Zakat (e.g. the value of your home does not count towards Zakat). For example, currency, including fiat, gold, silver and other precious metals, is at 2.5% annually. Livestock has a different calculation, and so does produce. Bitcoin and ETH combined are over 1T USD, much more than the figure you quoted. That's 25B annually, imagi…

> Different types of wealth have different Zakat values, and not all wealth is subject to Zakat (e.g. the value of your home does not count towards Zakat).

Of course. I did not want to get into such complications. This was more of a Fermi estimate to compare the amount a Zakat would raise in the US.

> It's strictly superior to have a system based on Zakat than the insane income taxes that we have today.

Maybe - remember that the US government pays for more besides bare welfare for the needy. Also the Islamic Zakat pays for more than welfare - also administration of Zakat (reasonable, but should be kept as low as possible) and Islamic missionary efforts (I don't think the US should redirect its welfare to "spreading liberty and democracy").

Even in Islam, there were more taxes than Zakat[1] - at the very least, a tax on harvests (corporate income or business reciepts tax) and a land tax - because Islamic governments also have other responsibilities besides charity. It would stand to reason that the federal and state governments would also continue to collect other taxes to support other government responsibilities. Also remember that inflation (certainly that intentionally engineered by the central bank) is effectively a wealth tax.

[1] https://en.wikipedia.org/wiki/Islamic_taxes

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