13 ms·

I hadn't heard about this. Do you have sources about the DOJ theft?

homologate 7y ago
https://www.justice.gov/usao-ndca/pr/russian-national-and-bitcoin-exchange-charged-21-count-indictment-operating-alleged https://www.justice.gov/usao-ndca/pr/russian-national-and-bi...
- lubesGordi 7y ago
  Thanks for posting this. I don't understand how the US can go in and decide BTC-e was a money laundering op and then confiscate bitcoins and put people in jail. Who decides who gets those bitcoins? Surely many other countries have money laundering laws. What makes the US so special that they can go flip a business operating in the Ukraine?
  - Erlich_Bachman 7y ago
    Do you now understand why we need something like Bitcoin? (Even if it's gonna a be a newer version of it in the future, or something even more private etc.)
    - cortesoft 7y ago
      Doesn't this instead just show the Realpolitik nature of currency, that it doesn't matter the technical implementation when a government can still just step in and seize the asset using traditional force?
      - solotronics 7y ago
        Yes but the key difference is with cryptocurrency the person that owns the wallet still has to sign the transaction, there is no other way. It's a push model instead of pull. Compare this to traditional banking where a 3rd party (the bank) can aquiesce to a government request without your knowledge or approval.
        cortesoft 7y ago
        They could prevent you from spending the coins, though, by threatening anyone who accepts a transfer of the 'seized' coins.
        silverhunter 7y ago
        Does the crypto community actually stop people from spending stolen coins? No, they send off alerts but the coins still get used.
        shkkmo 7y ago
        I'm pretty sure that "They" was meant to refer to the Government. The Government could most certainly pass laws (or enforce existing laws) that put people in jail for accepting stolen or "dirty" coins. (Just like the Government could pass a law or re-interpret existing laws to make making owning bitcoins illegal.)
        solotronics 7y ago
        Enforcing illegal torrents failed. I think a cryptocurrency ban would be similar. Also, the US made it illegal to hold gold between 1933 and 1974 but almost nobody turned in gold to the feds. https://en.m.wikipedia.org/wiki/Executive_Order_6102 https://en.m.wikipedia.org/wiki/Executive_Order_6102
        cortesoft 7y ago
        They enforce it when you buy something real with the coins. A torrent is the thing you want, it isn't a currency to buy the thing you want.
        Erlich_Bachman 7y ago
        Both are essentially electronic systems of information on a computing system, a format and a protocol of communication through the internet. In terms of technical difficulty to enforce them it would be very similar.
      - Erlich_Bachman 7y ago
        It cannot if you own your own keys. "Not your keys - not your crypto". Of course if you let some other entity to hold your keys, you're basically just using a bank, which has its own benefits, but I was talking about the unique ability to handle your keys, which crypto provides, as opposed to any other electronic money system to date.
        cortesoft 7y ago
        Ok, but what if the government says "anyone who accepts a payment from this wallet will have their assets seized" At some point, someone will want to do something in the real world with this money, and the government can step in there.
    - thfuran 7y ago
      So that the DOJ can steal it?
    - deleted 7y ago
      [deleted]
    - aalleavitch 7y ago
      Doesn't this just show that Bitcoin is worthless in comparison to a state-backed fiat currency? It doesn't matter if you have all the bitcoin in the world, the US government has more violence at its disposal than you could ever buy, and ultimately violence is the only thing that ensures the ownership of anything. If a government wanted something from you they could just take it, that's the real reason that the money they print has value.
      - jkhdigital 7y ago
        Fortunately those of us who live in the United States also have the protection of the U.S. Constitution, which provides a glimmer of hope that we can seek restitution when the government deploys its violence illegally. Who knows how much longer that will hold up though...
        aalleavitch 7y ago
        The Constitution is a piece of paper, it does nothing and protects no one. The real thing that is protecting you is the same thing that always has: the good will of your common man. The real power has always lied in the beliefs of the people and always will, and if you can’t have faith in that you can't have faith in anything. We all live at each other’s mercy. Any system that doesn’t have trust in each other as its fundamental basis simply can’t last.
    - silverhunter 7y ago
      Bitcoin was most likely created by the government. USA, RUSSIA, CHINA, JPMORGAN'S Chase. Just a way to move us to a cashless society. I am not saying Bitcoins not going to the million dollar mark. Just saying that there is more at play here than we think.
  - flyingfences 7y ago
    Haven't you heard? The USA owns the Internet.
  - cortesoft 7y ago
    > What makes the US so special that they can go flip a business operating in the Ukraine? Because no one is able to stop them.
    - moisto 7y ago
      Shut up and sing the song, pal
    - tibbetts 7y ago
      To quote: “...because we’ve got the bomb. Two words. Nuclear fucking weapons....”
  - kbenson 7y ago
    > Surely many other countries have money laundering laws. What makes the US so special that they can go flip a business operating in the Ukraine? Likely what makes the US special in this instance is that they did it first, and as long as other countries aren't going to make a stink about it (i.e. the US backs up its claims to some degree or the other countries don't want to question them), then it will get away with it. Rule of law is for people. Countries operate on a mixture of laws, norms, and consensus building. If every country but one decided to raid that one country, and they had the power (as in economic and military power) to do so, what's to stop them? Not a law, which they my nature can just rewrite.
  - deleted 7y ago
    [deleted]
  - gnaritas 7y ago
    > What makes the US so special that they can go flip a business operating in the Ukraine? On the international stage, might makes right. What makes us special... our military and our threats make other countries concede to our wishes.
  - peterwwillis 7y ago
    They don't have a right to do it, but there's nothing to stop them. A foreign power can have any law it wants, and no other foreign power has to respect it. You can try to sue them, but sovereign immunity, and foreign sovereign immunity, stops almost all of these attempts. The exceptions generally are human rights abuses (by the same state doing the suing...) and commercial transactions. In this case, the USG stole from money launderers in a foreign country. So not only can people in the US not sue the USG over it (sovereign immunity), people in the Ukraine can't sue the USG over it (foreign sovereign immunity). The thieves would have the best claim, but it doesn't work out well when you claim your illegal business was stolen from. And since it's a foreign power, if the US balks, it would be covered under international law, and guess who enforces international law?
    - bdowling 7y ago
      If your property is wrongfully seized by the government due to some criminal activity, you can file a claim to get it back. This happens all the time when a criminal is caught with stolen goods. The thieves do not have the best claim. It may take some time and effort to get the property back, but there is a process.
      - deleted 7y ago
        [deleted]
      - peterwwillis 7y ago
        Assuming the govt took the money under the auspices of a criminal forfeiture (which I assume because the company was supposedly for money laundering), you would basically need to prove a paper trail to show what specific part of the money they seized was yours, and even then who knows if there isn't a loophole that allows them to basically not respond if the forfeiture was of a foreign company on foreign soil. They took it from a non-US entity, so they may not have any responsibility to give any of it back, because it was not being held by someone in the US [with rights in the US]. (note: IANAL)
  - ummwhat 7y ago
    Ostensible justification: some trivial amount of money laundering could be traced to the US (iirc a few thousand dollars worth). Real justification: Extraterritoriality is a thing you get to do when you're an empire.
    - fastball 7y ago
      Trivial amount of money laundering BTC-e haha?
      - ummwhat 7y ago
        Read the indictment for yourself. Namely page 16 and 17 which account for charges 3-21 of the indictment (the vast majority of it). The only company within US jurisdiction that BTC-E did business with is a company called "tradehill". The amounts of money moved were small, ranging between $12.60 and $17,000. Less than $100,000 was moved overall and all of it was moved in early 2012. The US doesn't care about tracking down the $12.60 that you laundered on 24 January 2012 like it says in the indictment. The US is just using that as an excuse to impose it's money laundering laws outside of it's jurisdiction. The indictment is a pretext for extraterritoriality. Extraterritoriality is a thing you get to do when you're an empire.
        fastball 7y ago
        Not really sure how you're making the "empire" qualification. An empire by definition is not an entity which gets to make extraterritorial moves with impunity. Just seems silly to try and cast the US as an "empire" here when all you're really saying is "the US is a very powerful nation".
    - sweeneyrod 7y ago
      That's not what extraterritoriality means -- it refers to having your citizens/property be immune to local laws in foreign countries, not applying your laws to foreign citizens/property in foreign countries.
    - dragonwriter 7y ago
  - politicsisfun 7y ago
    Because it's an American vassal, like Japan.
  - lacampbell 7y ago
    What makes the US so special that they can go flip a business operating in the Ukraine? It looks like the man behind it was arrested while holidaying in Greece - a US ally.

https://www.justice.gov/usao-ndca/pr/russian-national-and-bitcoin-exchange-charged-21-count-indictment-operating-alleged https://www.justice.gov/usao-ndca/pr/russian-national-and-bi...

lubesGordi 7y ago
Thanks for posting this. I don't understand how the US can go in and decide BTC-e was a money laundering op and then confiscate bitcoins and put people in jail. Who decides who gets those bitcoins? Surely many other countries have money laundering laws. What makes the US so special that they can go flip a business operating in the Ukraine?
- Erlich_Bachman 7y ago
  Do you now understand why we need something like Bitcoin? (Even if it's gonna a be a newer version of it in the future, or something even more private etc.)
  - cortesoft 7y ago
    Doesn't this instead just show the Realpolitik nature of currency, that it doesn't matter the technical implementation when a government can still just step in and seize the asset using traditional force?
    - solotronics 7y ago
      Yes but the key difference is with cryptocurrency the person that owns the wallet still has to sign the transaction, there is no other way. It's a push model instead of pull. Compare this to traditional banking where a 3rd party (the bank) can aquiesce to a government request without your knowledge or approval.
      - cortesoft 7y ago
        They could prevent you from spending the coins, though, by threatening anyone who accepts a transfer of the 'seized' coins.
        silverhunter 7y ago
        Does the crypto community actually stop people from spending stolen coins? No, they send off alerts but the coins still get used.
        shkkmo 7y ago
        I'm pretty sure that "They" was meant to refer to the Government. The Government could most certainly pass laws (or enforce existing laws) that put people in jail for accepting stolen or "dirty" coins. (Just like the Government could pass a law or re-interpret existing laws to make making owning bitcoins illegal.)
        solotronics 7y ago
        Enforcing illegal torrents failed. I think a cryptocurrency ban would be similar. Also, the US made it illegal to hold gold between 1933 and 1974 but almost nobody turned in gold to the feds. https://en.m.wikipedia.org/wiki/Executive_Order_6102 https://en.m.wikipedia.org/wiki/Executive_Order_6102
        cortesoft 7y ago
        They enforce it when you buy something real with the coins. A torrent is the thing you want, it isn't a currency to buy the thing you want.
        Erlich_Bachman 7y ago
        Both are essentially electronic systems of information on a computing system, a format and a protocol of communication through the internet. In terms of technical difficulty to enforce them it would be very similar.
    - Erlich_Bachman 7y ago
      It cannot if you own your own keys. "Not your keys - not your crypto". Of course if you let some other entity to hold your keys, you're basically just using a bank, which has its own benefits, but I was talking about the unique ability to handle your keys, which crypto provides, as opposed to any other electronic money system to date.
      - cortesoft 7y ago
        Ok, but what if the government says "anyone who accepts a payment from this wallet will have their assets seized" At some point, someone will want to do something in the real world with this money, and the government can step in there.
  - thfuran 7y ago
    So that the DOJ can steal it?
  - deleted 7y ago
    [deleted]
  - aalleavitch 7y ago
    Doesn't this just show that Bitcoin is worthless in comparison to a state-backed fiat currency? It doesn't matter if you have all the bitcoin in the world, the US government has more violence at its disposal than you could ever buy, and ultimately violence is the only thing that ensures the ownership of anything. If a government wanted something from you they could just take it, that's the real reason that the money they print has value.
    - jkhdigital 7y ago
      Fortunately those of us who live in the United States also have the protection of the U.S. Constitution, which provides a glimmer of hope that we can seek restitution when the government deploys its violence illegally. Who knows how much longer that will hold up though...
      - aalleavitch 7y ago
        The Constitution is a piece of paper, it does nothing and protects no one. The real thing that is protecting you is the same thing that always has: the good will of your common man. The real power has always lied in the beliefs of the people and always will, and if you can’t have faith in that you can't have faith in anything. We all live at each other’s mercy. Any system that doesn’t have trust in each other as its fundamental basis simply can’t last.
  - silverhunter 7y ago
    Bitcoin was most likely created by the government. USA, RUSSIA, CHINA, JPMORGAN'S Chase. Just a way to move us to a cashless society. I am not saying Bitcoins not going to the million dollar mark. Just saying that there is more at play here than we think.
- flyingfences 7y ago
  Haven't you heard? The USA owns the Internet.
- cortesoft 7y ago
  > What makes the US so special that they can go flip a business operating in the Ukraine? Because no one is able to stop them.
  - moisto 7y ago
    Shut up and sing the song, pal
  - tibbetts 7y ago
    To quote: “...because we’ve got the bomb. Two words. Nuclear fucking weapons....”
- kbenson 7y ago
  > Surely many other countries have money laundering laws. What makes the US so special that they can go flip a business operating in the Ukraine? Likely what makes the US special in this instance is that they did it first, and as long as other countries aren't going to make a stink about it (i.e. the US backs up its claims to some degree or the other countries don't want to question them), then it will get away with it. Rule of law is for people. Countries operate on a mixture of laws, norms, and consensus building. If every country but one decided to raid that one country, and they had the power (as in economic and military power) to do so, what's to stop them? Not a law, which they my nature can just rewrite.
- deleted 7y ago
  [deleted]
- gnaritas 7y ago
  > What makes the US so special that they can go flip a business operating in the Ukraine? On the international stage, might makes right. What makes us special... our military and our threats make other countries concede to our wishes.
- peterwwillis 7y ago
  They don't have a right to do it, but there's nothing to stop them. A foreign power can have any law it wants, and no other foreign power has to respect it. You can try to sue them, but sovereign immunity, and foreign sovereign immunity, stops almost all of these attempts. The exceptions generally are human rights abuses (by the same state doing the suing...) and commercial transactions. In this case, the USG stole from money launderers in a foreign country. So not only can people in the US not sue the USG over it (sovereign immunity), people in the Ukraine can't sue the USG over it (foreign sovereign immunity). The thieves would have the best claim, but it doesn't work out well when you claim your illegal business was stolen from. And since it's a foreign power, if the US balks, it would be covered under international law, and guess who enforces international law?
  - bdowling 7y ago
    If your property is wrongfully seized by the government due to some criminal activity, you can file a claim to get it back. This happens all the time when a criminal is caught with stolen goods. The thieves do not have the best claim. It may take some time and effort to get the property back, but there is a process.
    - deleted 7y ago
      [deleted]
    - peterwwillis 7y ago
      Assuming the govt took the money under the auspices of a criminal forfeiture (which I assume because the company was supposedly for money laundering), you would basically need to prove a paper trail to show what specific part of the money they seized was yours, and even then who knows if there isn't a loophole that allows them to basically not respond if the forfeiture was of a foreign company on foreign soil. They took it from a non-US entity, so they may not have any responsibility to give any of it back, because it was not being held by someone in the US [with rights in the US]. (note: IANAL)
- ummwhat 7y ago
  Ostensible justification: some trivial amount of money laundering could be traced to the US (iirc a few thousand dollars worth). Real justification: Extraterritoriality is a thing you get to do when you're an empire.
  - fastball 7y ago
    Trivial amount of money laundering BTC-e haha?
    - ummwhat 7y ago
      Read the indictment for yourself. Namely page 16 and 17 which account for charges 3-21 of the indictment (the vast majority of it). The only company within US jurisdiction that BTC-E did business with is a company called "tradehill". The amounts of money moved were small, ranging between $12.60 and $17,000. Less than $100,000 was moved overall and all of it was moved in early 2012. The US doesn't care about tracking down the $12.60 that you laundered on 24 January 2012 like it says in the indictment. The US is just using that as an excuse to impose it's money laundering laws outside of it's jurisdiction. The indictment is a pretext for extraterritoriality. Extraterritoriality is a thing you get to do when you're an empire.
      - fastball 7y ago
        Not really sure how you're making the "empire" qualification. An empire by definition is not an entity which gets to make extraterritorial moves with impunity. Just seems silly to try and cast the US as an "empire" here when all you're really saying is "the US is a very powerful nation".
  - sweeneyrod 7y ago
    That's not what extraterritoriality means -- it refers to having your citizens/property be immune to local laws in foreign countries, not applying your laws to foreign citizens/property in foreign countries.
  - dragonwriter 7y ago
- politicsisfun 7y ago
  Because it's an American vassal, like Japan.
- lacampbell 7y ago
  What makes the US so special that they can go flip a business operating in the Ukraine? It looks like the man behind it was arrested while holidaying in Greece - a US ally.