Thank you for informing us OP. As far as dealing locally in person with cash, I feel that is the only way I would accept cash transactions in exchange for my bitcoins (with the exception of well recognized companies/exchanges) everything else is so reversible, and with western Union you have to give out your full name etc to someone over the web that you're sending bitcoins to, which I actually consider to be even more revealing that just seeing my face (at least I get to see theirs too). I didn't realize that LE would try to setup stings like this and it just adds to the list of forseeable problems with dealing in person.
1. Getting robbed
2. Privacy concerns
3. Possibility of them following you afterwards
4. Law enforcement setups, that should really be illegal themselves
Topic: .. - page 4. (Read 6236 times)
I'd prefer to buy locally.
I'd also prefer to wear my anonymous outfit during any bitcoin purchase.
My anonymous outfit is full body covering with a v for vendetta mask.
I hate the idea of sacrificing my privacy for the advantages of buying locally.
I'm too lazy to buy bitcoins anyways.
Buying bitcoins is just a extra step for purchasing legitimate goods and a risky store of value.
I'd also prefer to wear my anonymous outfit during any bitcoin purchase.
My anonymous outfit is full body covering with a v for vendetta mask.
I hate the idea of sacrificing my privacy for the advantages of buying locally.
I'm too lazy to buy bitcoins anyways.
Buying bitcoins is just a extra step for purchasing legitimate goods and a risky store of value.
But today was different.
Care to divulge your state?Anyway, thanks for the heads up. I sell a lot on localbitcoins for cash, but I don't usually advertise anymore. Instead I pick pro buyers with good reps and sell to their bids. I recently tried to advertise and got some weirdo potential buyer who asked too many questions and gave out too much information but fortunately I never followed through. You get better prices if you advertise but you also attract the attention of LEO looking to set up an entrapment arrest.
If you are only a seller want to stay low key, you might also want to change LBC accounts before you reach > 150 BTC worth of transactions on any one account. You don't really need a lot of rep as a seller.
I don't think I would have the confidence to do the local trade it would be going through my mind that the person I'm dealing with could actually be willing to harm me to get to a high amount of Bitcoin I don't think I fancy having that in the back of my mind every time I did a deal with someone locally.
I used to sell on LBC just for fun and to help get new people started with BTC. Just like how I got started by using #bitcoin-otc and (rip) Bitinstant.
But the last time I tried an in-person transaction, the person seemed really weird...did not seem to have much interest in bitcoin. I had to cancel the transaction anyway because the LBC sms service was so backlogged it would not release my coins to the buyer after I sent the text.
I remember last year someone contacted me to buy and when I googled their username (due diligence) it turned out they were using the same name on the SR forums where they talked about their business. LOL.
Anyway it does not surprise me that LBC is crawling with LEO, be careful out there!
But the last time I tried an in-person transaction, the person seemed really weird...did not seem to have much interest in bitcoin. I had to cancel the transaction anyway because the LBC sms service was so backlogged it would not release my coins to the buyer after I sent the text.
I remember last year someone contacted me to buy and when I googled their username (due diligence) it turned out they were using the same name on the SR forums where they talked about their business. LOL.
Anyway it does not surprise me that LBC is crawling with LEO, be careful out there!
I think this only applies if you are charging a large markup (this is how they find you) and continue with the transaction after the undercover LE officer says he is going to use the BTC for illegal purposes. If you were to trade face to face by other means, you will likely be safe as it would take up too much of LE's resources to go after everyone that trades face to face like this.
On any escrow based exchange like localbitcoins, it is better to trade online rather F2F. People will get to accustomed to this fact with time.
I respectfully disagree.
For you and I, online exchanges are a great idea. That's because we know what the scammer signs are.
To the complete newbie, in person is the ONLY smart way. I can't count how many Bitcoin newcomers have told me, "I tried to buy on this or that site and never received my Bitcoin."
In person + cash = 90% guaranteed to receive your coin.
In person + cash + dealing with me = 100% guaranteed to receive your coin.
I understand what u r saying, but it is because the current system on localbitcoins does not provide enough security to the traders, especially sellers. This is not the problem of escrow based system. This is because of the flaw in localbitcoin's system design. Because, when it was written, Jeremias did not account for much to deal with a scammer. He tried to make it hindrance free. Sadly their are no much alternatives as of yet. Hopefully we will see proper escrow based exchanges in coming days...
I was honestly considering using BTC before, but after I read this I've made my mind up. Thank you for the heads up.
Sting operations are nothing new or exclusive to bitcoin.
Great post.. i am thinking about selling bitcoin locally on local bitcoins. I figured I would be okay if i just accepted cash and didn't use an exchange to do the transaction. But I do know for a FACT that the DEA and Homeland security have a whole division that is looking into localbitcoin. So, do what the op did, if you have any clue that the buyer/seller is doing something illegal, tell him exactly what the op did. I believe the guy the op ran into was indeed a cop and was hoping to get a drug connection, ect. not really a bitcoin bust, but the govt thinks that if you are using bitcoin the transaction HAS to be illegal..
I trade on LBC and can confirm similar suspicions.
Couple weeks ago I initiated a purchase with a local seller. Typically Bitcoin people I've met are open and excited about the currency but this seller didn't seem particularly friendly and politely just answered yes or no. What struck me as odd was as I was leaving, I caught the glance of another man seated at another table and his eyes widened as if he saw Lenin's ghost then quickly averted eye contact. I've seen that look before when I've been followed by poorly trained undercover security at department stores.
This week, I received a package of clothing that I was expecting. It had a clean 2 inch slit as if my mail were being inspected.
That's all to report for now, but I'm going to send some test mail to myself. Maybe send some flour or something...
Couple weeks ago I initiated a purchase with a local seller. Typically Bitcoin people I've met are open and excited about the currency but this seller didn't seem particularly friendly and politely just answered yes or no. What struck me as odd was as I was leaving, I caught the glance of another man seated at another table and his eyes widened as if he saw Lenin's ghost then quickly averted eye contact. I've seen that look before when I've been followed by poorly trained undercover security at department stores.
This week, I received a package of clothing that I was expecting. It had a clean 2 inch slit as if my mail were being inspected.
That's all to report for now, but I'm going to send some test mail to myself. Maybe send some flour or something...
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