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Feds seized $311M in Bitcoin, then hacker stole it back

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Re: Feds seized $311M in Bitcoin, then hacker stole it back

#51
post #39
post #33

Earlier quoted context omitted.

Likelihood that these are always on, dumping data directly to the Feds?

Zero, given that anyone can sniff the traffic.

There can never be a problem with OpenSSL or Log4j, they’re open source. Too many eyes on it to be a problem. Absolutes, cut it out.

Re: Feds seized $311M in Bitcoin, then hacker stole it back

#52
post #33

> Agents built a detailed financial picture of Larry. Inspecting his cloud accounts, they found a Google Glass photo of a computer screen showing the Helix administrator page Wow, a picture taken with google glass is one of the things that got him

Likelihood that these are always on, dumping data directly to the Feds?

Based on the replies you received, somewhere between zero and 101%.

Jokes aside, my guess is zero. Transmitting that much data would probably be a lot. Maybe you could take a picture every 30 minutes and hide it away with other data if you really wanted to, but Google Glass was so short lived I imagine they had bigger things to worry about.

Re: Feds seized $311M in Bitcoin, then hacker stole it back

#53
80% of the way through the article you can read what actually happened. It's not that the Feds were incompetent and kept a "seized wallet" thinking only they had the private keys or something like that.

The wallets were simply protected by a passphrase and Larry couldn't be compelled to give the passphrase. The feds even told the judge they didn't have control of the funds and they could be moved to family/friends before it happened.

Re: Feds seized $311M in Bitcoin, then hacker stole it back

#54
post #41

Earlier quoted context omitted.

>> you would think people in his position would know what private keys are and how to secure Bitcoin funds they pretend to "seize" How exactly would you have handled this differently? They were well aware the account could be recovered via mnemonic, but they couldn't move the funds because they didn't have the PIN.

Don’t call it seizing then.

[deleted]

Re: Feds seized $311M in Bitcoin, then hacker stole it back

#55

> The prosecutors accuse Harmon of a very unusual crime: remotely swiping Bitcoin... As opposed to what, "locally" swiping Bitcoin? > ... Bitcoin stored on a computer device the government had already seized in another case Yeah that's your problem Mr. Prosecutor, you have no idea where bitcoins are "stored" or what the device you have seized is. Which leads me to think you are not qualified to "seize" this type of a…

> as opposed to what? There are more words in that sentence. Are there other examples where someone "remotely [swiped] Bitcoin stored on a computer device the government had already seized in another case ?" They seem to define "stored on service" in this case as "accessible only with access to device." It's an interesting case: is it harder to recover physical assets from a police storage locker than digital?

It’s like ‘seizing’ a copy of digital pictures by a well known photographer (or a hard copy of the camera film reel) without actually being in control of the original pictures.

And being surprised that another person got access to the photos and sold the originals on the market to another buyer.

It didn’t require breaking into the police evidence locker to make copies.

The key difference here in this analogy is that with pictures the cloned digital assets might have some value but not securing the original keys is like not securing the copyright.

Re: Feds seized $311M in Bitcoin, then hacker stole it back

#57

Earlier quoted context omitted.

why? i'm sure they had a warrent

https://en.wikipedia.org/wiki/PRISM

Irrelevant. If they have a warrant they can physically knock down your door and search your underwear drawer.

Re: Feds seized $311M in Bitcoin, then hacker stole it back

#58
post #33

> Agents built a detailed financial picture of Larry. Inspecting his cloud accounts, they found a Google Glass photo of a computer screen showing the Helix administrator page Wow, a picture taken with google glass is one of the things that got him

Likelihood that these are always on, dumping data directly to the Feds?

Besides what other people said, if a device is always on, dumping data directly to the Feds then it will be hot and its battery life will be very short.

Re: Feds seized $311M in Bitcoin, then hacker stole it back

#59

Earlier quoted context omitted.

> as opposed to what? There are more words in that sentence. Are there other examples where someone "remotely [swiped] Bitcoin stored on a computer device the government had already seized in another case ?" They seem to define "stored on service" in this case as "accessible only with access to device." It's an interesting case: is it harder to recover physical assets from a police storage locker than digital?

> It's an interesting case because it's harder to recover physical assets from a police storage locker than digital. I feel like you missed the whole point the comment you replied to made. If the person who stored the cryptocoins on the physically seized computer had a copy of the private keys on another computer (COMPLETELY NORMAL) and the prosecutor never transferred the coins making the assumption that physically…

It’s a moot point. If BTC is seized or forfeited to the US government, and the (co-)owner later transfers them out of the original wallet, it will likely only accomplish the addition of felony criminal charges. It is an assist to the federal prosecutors. Case in point, Gary Harmon, who probably wouldn’t be on trial otherwise.

Re: Feds seized $311M in Bitcoin, then hacker stole it back

#60
post #41

Earlier quoted context omitted.

>> you would think people in his position would know what private keys are and how to secure Bitcoin funds they pretend to "seize" How exactly would you have handled this differently? They were well aware the account could be recovered via mnemonic, but they couldn't move the funds because they didn't have the PIN.

Sounds like they did not truly secure the crypto then. Shouldn't call it seizing if you don't have it digitally in your own secure wallet.

Wait until the prosecutors learn about gas fees. XD
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