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Please explain the mechanism where I send someone bitcoin the government wants to seize and they successfully seize them. Do you think people in other countrie

Please explain the mechanism where I send someone bitcoin the government wants to seize and they successfully seize them. Do you think people in other countries care what the US government "seizes"?

gregjor 5y ago
Bitcoin get stolen by hacking and fraud all the time — alarmingly often, I would say. So let’s imagine a world where state actors like the US government have resources equivalent to teenagers in the Ukraine. https://en.wikipedia.org/wiki/Cryptocurrency_and_crime https://en.wikipedia.org/wiki/Cryptocurrency_and_crime The US government already seized a pile of Bitcoin that was stolen from Silk Road by apparently strong-arming or negotiating with the hacker who stole the BTC. I imagine the US government could do the same kind of hacking — a claim the FBI appeared to make in the case. If the government wants to seize your assets but can’t find them or get to them, they seize you. A bank robber who hides the cash and refuses to give it up can’t spend it from jail. Do people in other countries care what the US government seizes? Probably not. But governments and law enforcement agencies in other countries do. Look at how the US government strong-armed banks in almost every country to comply with US money laundering and tax avoidance laws. Try to open a bank account in a foreign country with a US passport and see if they care about US law (hint: they do). And the US government can seize foreign assets, you should have no trouble finding numerous examples of that actually happening. Supposing BTC exchanges and your wallet are 100% secure from even government hacking and seizure (all evidence to the contrary). If the government wants to seize those assets but can’t they will seize what they can. The minute you try to use your BTC for anything of value the government can seize the cash or goods you exchange BTC for. So maybe they never get the BTC, but those coins are useless to you in the same way the box of stolen cash buried in the woods is useless to the bank robber. Forget about leaving the country, the FBI canceled your passport.
- Mc_Big_G 5y ago
  Sure, anyone can strong-arm you, including the government, but they'll generally have to go through the law to do it and it doesn't guarantee they'll succeed. If you have multi-sig set up, your benefactors could just take over and continue using it with impunity.

Please explain the mechanism where I send someone bitcoin the government wants to seize and they successfully seize them. Do you think people in other countries care what the US government "seizes"?

gregjor 5y ago

Bitcoin get stolen by hacking and fraud all the time — alarmingly often, I would say. So let’s imagine a world where state actors like the US government have resources equivalent to teenagers in the Ukraine. https://en.wikipedia.org/wiki/Cryptocurrency_and_crime https://en.wikipedia.org/wiki/Cryptocurrency_and_crime The US government already seized a pile of Bitcoin that was stolen from Silk Road by apparently strong-arming or negotiating with the hacker who stole the BTC. I imagine the US government could do the same kind of hacking — a claim the FBI appeared to make in the case. If the government wants to seize your assets but can’t find them or get to them, they seize you. A bank robber who hides the cash and refuses to give it up can’t spend it from jail. Do people in other countries care what the US government seizes? Probably not. But governments and law enforcement agencies in other countries do. Look at how the US government strong-armed banks in almost every country to comply with US money laundering and tax avoidance laws. Try to open a bank account in a foreign country with a US passport and see if they care about US law (hint: they do). And the US government can seize foreign assets, you should have no trouble finding numerous examples of that actually happening. Supposing BTC exchanges and your wallet are 100% secure from even government hacking and seizure (all evidence to the contrary). If the government wants to seize those assets but can’t they will seize what they can. The minute you try to use your BTC for anything of value the government can seize the cash or goods you exchange BTC for. So maybe they never get the BTC, but those coins are useless to you in the same way the box of stolen cash buried in the woods is useless to the bank robber. Forget about leaving the country, the FBI canceled your passport.

Mc_Big_G 5y ago
Sure, anyone can strong-arm you, including the government, but they'll generally have to go through the law to do it and it doesn't guarantee they'll succeed. If you have multi-sig set up, your benefactors could just take over and continue using it with impunity.