[2019-08-24] BTC Transactions Lead to Int'l Drug Trafficking Ring’s Arrest - page 2.

BitHodler

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Quote from: NeuroticFish on August 25, 2019, 08:24:29 AM

But the more the news about "bad guys", Bitcoin and "caught", the bigger the chance they'll use anonymous coins.

That's what I thought initially, but this doesn't really seem the case. Sure, there might have been a slight uptick in use of privacy focused altcoins, but more than that definitely not.

Privacy focused altcoins might be more private than Bitcoin, but they lack the acceptance that Bitcoin has, and that by orders of magnitude. It's not easy to find someone to accept your XMR or Zcash.

An aspect that might have contributed to this is that exchanges have slowly started delisting these coins because they want to become compliant. I can't see this chance at all.

1Referee

legendary

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Quote from: bryant.coleman on August 25, 2019, 12:19:04 AM

There is a good chance that they were traced when they tried to convert their BTC to cash. And this is the stage where more than 90% of the drug traffickers are caught.

That's very likely it. Even if they haven't been caught converting to fiat directly, the entities who end up receiving these tainted coins might try to convert their coins without realizing what they have been used for, and that's how law enforcement is a step closer to the actual criminals. Bitcoin is just a horrible tool to use for practices like these.

I actually believe that law enforcement is very happy with Bitcoin being so transparent. It allows them to solve cases that with a high degree of certainty wouldn't be solved if the criminals used cash. But then again, this isn't going to work for ever with how people slowly but surely figure out that there is no such a thing as anonymity when it comes to Bitcoin.

hugeblack

legendary

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This article has a clear contradiction. It speaks of the fact that they are using BTC as a tool of privacy and hence out of sight of governments. On the other hand, governments are monitoring these flows.

Quote

More specifically, they are monitoring Bitcoin revenue streams.

This is a weak argument. When there is no other reason to ban something we start to create fears about it so that people avoid.
I do not know what the real ratio is, but more people are speculating than the number who use BTC for dark activities.

NeuroticFish

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Quote from: https://themerkle.com/bitcoin-transactions-lead-to-international-drug-trafficking-rings-arrests/

These two Chinese drug dealers may be small fish leading to a bigger whale if the investigation is successful.

If they would have had any clue for the next step(s) in order to catch the big boys, this wouldn't have gotten out to media.
They've caught 2 small dealers and ta-dam, Bitcoin, you know?

If they would not be so stupid to bash Bitcoin, they'd keep their mouth shut and go on. Bitcoin is pseudo-anonymous and a bad move can reveal your identity. That's a fact. But the more the news about "bad guys", Bitcoin and "caught", the bigger the chance they'll use anonymous coins. And then the law will have no choice on this direction.

bryant.coleman

legendary

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More details are needed before we can comment on this news. I am not sure how the feds were able to track the Bitcoin transactions. Drug kingpins normally have tens of billions of USD worth of turnover per year, and they are not stupid to use payment methods that can be traced back to them. I am sure that the Chinese individuals in question here might have used Bitcoin mixers and other anonymity providers.

There is a good chance that they were traced when they tried to convert their BTC to cash. And this is the stage where more than 90% of the drug traffickers are caught. There are only a very few instances where the authorities actually tracked the Blockchain transactions to the individual. In most cases, the BTC to fiat conversion is the riskiest part for the criminals.

BTW, can someone confirm whether these two Chinese individuals were arrested from Ohio, or from outside the US?

nulltxmark

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Criminals often express their favoritism toward cryptocurrencies. The perceived privacy and anonymity associated with this payment method makes for an excellent tool. In the US, the Treasury is now targeting Chinese drug kingpins. More specifically, they are monitoring Bitcoin revenue streams. That form of payment has become all the more prominent as time went by.

CHINA, DRUGS, AND BITCOIN

The vast majority of drugs and other narcotics consumed in the United States is not home-grown. It is often imported from countries such as Colombia, Mexico, and in a fair few cases, even China. Particularly where opioids are concerned, Chinese drug dealers are playing an increasing role of importance. They are also involved in shipping fentanyl analogues and cannabinoids, among other substances.

Several arrests were made in August of 2018. At that time, the US Attorney’s Office highlighted an indictment in federal court in Ohio. Two Chinese individuals – who are father and son – were charged with operating, manufacturing, and shipping various illegal substances. It is believed they served customer sin at least three dozen US states and over two dozen countries in total. It appears some of their business was conducted on the darknet, albeit exact details have not been provided as of yet.

Read More: https://themerkle.com/bitcoin-transactions-lead-to-international-drug-trafficking-rings-arrests/

Topic: [2019-08-24] BTC Transactions Lead to Int'l Drug Trafficking Ring’s Arrest - page 2. (Read 359 times)