Feds seize Bitcoin from ransomeware attack...

[dcs13]

https://theconservativetreehouse.com/blog/2021/06/07/doj-says-it-seized-2-3-million-in-bitcoin-from-colonial-pipeline-hackers/

This is going to be interesting to see play out. I have some thoughts, but will withhold for now...
Wonder what the price of Bitcoin is fixing to do ?

[scootro]

i sold my stuff last month. Bitcoin is an overinflated balloon waiting to pop

[svauto-erotic855]

I'm pretty sure there were no hackers or if there were they were working in concert with the FBI. It appears that they have gone full circle weaponizing federal law enforcement. They were using it to harass political adversaries but now it looks like they're using them to intimidate corporations and people using serious serious threats instead of petty harassment and are directly involving them in achieving political objectives. This does two things in this instance. It puts oil companies on notice that if they don't comply they will be attacked either in courtrooms or in the real world and at the same time the feds just told anyone that holds Bitcoin that they can take them away no matter how hard you try to stash your money away form the government the government can get it.

[Gasser64]

and at the same time the feds just told anyone that holds Bitcoin that they can take them away no matter how hard you try to stash your money away form the government the government can get it.

That's not how crypto works. The government can't do a thing IF you do things right. The hackers fucked up when they left their keys in some wallet. That's not what you do. You get your keys, and then you delete the wallet. Destroy the hard drive if you want to, as there might be some way to recover it even after using super cover up/deletion software. The keys are to be held somewhere safe, on physical paper.

You can even memorize them if you really want to, and then get rid of the paper. This way the only way in the world to access that bitocin, is stored inside your brain. The distributed ledger is protecting you now. The government can't affect that. You aren't going to fool bank of america into thinking you didn't just withdraw $3,000 at a different bank branch, and you aren't going to fool the bitcoin blockchain either. I guess they can arrest you and torture for the keys, but that ain't happening to these hackers nor to all the other billions of other crypto holders.

We have a saying "Not your keys, not your crypto". The hackers broke that rule and paid for it.

The disadvantage to all this is that if someone finds out where you have your secret keys written down, they now have the keys to the kingdom and can rob you in safety. Because there are mixers that can be used to make the bitcoin you stole anonymous.

And this is all taking for granted that you're dealing with real crypto, and not some kind of trash. Another thing to note is that bitcoin was never intended to be anonymous, for that you need to use another well established one called Monero. You can tell it works because law enforcement agencies are constantly complaining about it.

Crypto was designed to cut government (and middlemen) out, and it is very good at it. It's the same thing the founding fathers did back in the day. "Oh you wanna fuck with our money? Fine, we use our own money now. Screw yours." The only thing they can actually control is when you want to get back into their ecosystem. The dollar. They could force banks to stop allowing transfers between crypto and the dollar, so that nobody could sell any for dollars.

But that would be a mistake. The toothpaste is out of the tube, crypto isn't going anywhere, and they'd run the risk of the dollar falling in popularity over a long enough timeline, and people starting to use crypto for everything instead. Just like in the 1700's. Could bite em in the ass if they do that. Imo their best bet is to just accept it and learn to live with it, as there is nothing they can do to stop it. And if someone really doesn't want them to have it, they're not getting it.

[Craizie]

lol.

[svauto-erotic855]

That's not how crypto works. The government can't do a thing IF you do things right. The hackers fucked up when they left their keys in some wallet. That's not what you do. You get your keys, and then you delete the wallet. Destroy the hard drive if you want to, as there might be some way to recover it even after using super cover up/deletion software. The keys are to be held somewhere safe, on physical paper.

You can even memorize them if you really want to, and then get rid of the paper. This way the only way in the world to access that bitocin, is stored inside your brain. The distributed ledger is protecting you now. The government can't affect that. You aren't going to fool bank of america into thinking you didn't just withdraw $3,000 at a different bank branch, and you aren't going to fool the bitcoin blockchain either. I guess they can arrest you and torture for the keys, but that ain't happening to these hackers nor to all the other billions of other crypto holders.

We have a saying "Not your keys, not your crypto". The hackers broke that rule and paid for it.

The disadvantage to all this is that if someone finds out where you have your secret keys written down, they now have the keys to the kingdom and can rob you in safety. Because there are mixers that can be used to make the bitcoin you stole anonymous.

And this is all taking for granted that you're dealing with real crypto, and not some kind of trash. Another thing to note is that bitcoin was never intended to be anonymous, for that you need to use another well established one called Monero. You can tell it works because law enforcement agencies are constantly complaining about it.

Crypto was designed to cut government (and middlemen) out, and it is very good at it. It's the same thing the founding fathers did back in the day. "Oh you wanna fuck with our money? Fine, we use our own money now. Screw yours." The only thing they can actually control is when you want to get back into their ecosystem. The dollar. They could force banks to stop allowing transfers between crypto and the dollar, so that nobody could sell any for dollars.

But that would be a mistake. The toothpaste is out of the tube, crypto isn't going anywhere, and they'd run the risk of the dollar falling in popularity over a long enough timeline, and people starting to use crypto for everything instead. Just like in the 1700's. Could bite em in the ass if they do that. Imo their best bet is to just accept it and learn to live with it, as there is nothing they can do to stop it. And if someone really doesn't want them to have it, they're not getting it.

I know how crypto works dude. If you believe a set of rogue genius black hat hackers accidentally left their wallet for the FBI to find then I've got a bridge to sell you assuming the FBI really took the money back.

[Gasser64]

I know how crypto works dude.

Well your post sounded like you actually believed the article, so to that I say: You're not getting getting any crypto you don't have the keys to. Period. And you can make it so that no government agency will ever come close to getting your keys.

And yes, that kind of thing happens all the time. Sysadmins will tell you all about it. Someone somewhere in the chain, made an oopsie and fucked the security or anonymity.

Did you read the article?

"...through accessing a server in North Carolina used to enter the Bitcoin wallet password of the original hackers."

There's the royal fuckup ^^^

"However, the DOJ still claims the “hackers” were sophisticated Russian operatives. Meaning the “Russian Hackers” were so sophisticated they could hack a major gas pipeline, but not sophisticated enough to protect their wallet and hosted it online on a US based server?"

That doesn't seem likely ^^^

"Doesn’t this seem like either the private key wasn’t private, or the FBI was the original hacker of the pipeline?"

Wouldn't put it past their sorry asses ^^^

[dcs13]

"Doesn’t this seem like either the private key wasn’t private, or the FBI was the original hacker of the pipeline?"

Wouldn't put it past their sorry asses ^^^

Im HUGELY skeptical of all this. PR stunt by the DOJ/ FBI ? Perhaps to shield their own activities??? FUCK, I hate you cant trust our own people.

[Sean88gt]

They clawed back an untraceable crypto? Suuuure.

[ceyko]

I hate you cant trust our own people.

On one hand, I love that more and more are open to this train of thought. On the other it does suck.

[Gasser64]

The FBI has proven themselves to be some of the bigger scumbags in the government, time and again. I don't cut any of the low level people an inch of slack either.