Topic: Ex-CIA Director Proved Bitcoin Use in Illicit or Crime to be disprove (Read 302 times)

^ The only reason why the Ex-CIA has to prove that BTCs legality and low rate or percentage of use in Illicit or illegal transaction is because of the greediest person Janet Yellen. Probably people already knew about her personal agenda and where she really is after and also the people behind her campaign that supports her because they find BTC as a threat to their business. If you will check carefully, the percentage of BTC being used for illicit purposes is way smaller than fiat now. The community has successfully controlled illegal stuff to be connected to cryptocurrency’s pioneer.

so as deputy director before 2013 he was part of the propaganda that bitcoin was darkweb money..
he probably earned a fair bit going to 'security' conferences to spout out that mantra in his official capacity

then after leaving his role and in his unofficial capacity he wants to get paid doing interviews to say that the CIA propaganda was wrong
.... bit late .. but getting paid jumping over a fence he created

its like the SEC guy that invented bitcoin NYLicence. .. and a year later left his role to join a bitcoin corporation to help advise people how to get around the licence or how to get through it quick and cheaply

Previously, similar studies have already been carried out in the United States and Europe, and by government agencies. They showed that bitcoin is not as anonymous as previously assumed, and under certain circumstances, it may well be tracked by law enforcement agencies. Perhaps, and with this in mind, according to research results, bitcoin was used for illegal purposes in 5-6 percent of cases, while in another study, this percentage was about ten. Fiat currency is used for illegal purposes, in my opinion, much more often.

We do not know the real percentage, however, is it really bad if this percentage was more than 10%? Anyone who understood the technology behind bitcoin and some of the other cryptocoins would accept that they are very good mediums for criminality. I am only annoyed by some people who deny this because it might be a threat to the pump.

It something that's easy to understand because all transaction carried out through Bitcoin are not totally anonymous while fiat currency can be easily moved in person from one destination to another without knowing who does the transaction and the last time I checked most people that are into an illicit business like fiat currency that crypto.

It's great that the purpose of the report is to disprove the point about Bitcoin being a tool for illegal activities. I'm glad that the result of this research is that this point is overstated, especially since the guy who did it wasn't initially pro-Bitcoin.
However, I believe that it would also make sense to compare Bitcoin usage to fiat usage when it comes to illegal activities because somehow people don't say that we should strictly regulate the usage of USD because it's used for illegal activities, so some sort of comparison could be useful.

I know very well that the fiat currency is the one that is being used mostly by those that are into scamming and all of that. Though I do know that there are some illicit activities where bitcoin is being used, but I have always believed that there isn’t many of them that are making use of cryptocurrency as a payment method, it’ has always been fiat that they prefer to be making use of.

So, the government or anyone trying to say that these currencies should be stopped for that same reason is a big lie. It’s just like the Nigeria central bank that banned bitcoin and claimed it’s because it is being used for illicit activities, they are just making up foolish lies, lots of their politicians have been laundering money from them and using fiat to do it and they never found out lol, that’s one of the worst central bank there is.

this could just be an excuse to force exchanges so they could seize information. they know very well how they could track everyone. yellen pretty sure had been educated as much as this ExCIA how blockchain works. i'm sure they can ask the exchanges for access to their database regarding the kyc they've gathered and where the coins are sent from our wallets.  they started with Kraken already.

There's also the undocumented crimes that slip past the eyes of the law enforcement agencies, they aren't accounted so I disagree with the fact that there is less than 1% and I think that this ex-CIA director is just reporting false numbers because they seem to have a benefit in this thing.

agree with you, we have to respond to this news from two sides...
If his report says Bitcoin is used more often for crime then we can also argue that fiat money was already used for crimes such as drug transactions, arms trafficking, and bribery, long before Bitcoin existed.

Agreed on the less than 1% if you consider bitcoin transactions from wallets to exchange and then back to wallets. Much of bitcoin’s transactions are motivated by speculation, however, the percentage for underground transactions should be more if you remove those transactions to the exchanges and from them.

This is a very powerful information statement coming from an Ex CIA director which proved the misinformation and false claim which a lot of Bitcoin hater within the government are feeding the major public about Bitcoin been use for illicit activities so they can cause FUD in the market it all a lie but is still sad though because the CIA director makes this prove after he leaves the office and the same thing goes to Trump ex-chief strategist that said Bitcoin is a true symbol of liberation.
Which mean a negative statement about Bitcoin said from the government agency which is currently in the office shouldn't be trusted.

Well, the graph tells it, the illicit or crime use of bitcoin is almost 0%. Perhaps, when it comes to financing --a 7 percent is already high and alarming. Every percentage counts and big money is already involved with the least percentage. So 6-7 percent drop rate of illicit/crime use is too much already to prove that a currency or alternative currency or assets or securities deserve to gain trust from the public. Bitcoin already has it and already gained too much trust based on its results and fruits. Those against have to prove that they are more deserving, as well. I don’t really like Janet Yellen, on my own. She does not have what it takes to be a Treasury Secretary. On this, I don’t think the campaign founded by Janet will re-think of pursuing what they fight for. Unless they only care for the financing they get from the campaign.

Of course, he didn't discover anything new that we didn't already know, and that is that Bitcoin is not something used by criminals or terrorists. When all the possible data is compared, then fiat is still the king when it comes to illegal activities, and if someone wants to hide something through crypto, then they will use other alternative currencies that have far greater privacy.


And I believe you're not the only one who's confused, because the media always emphasizes that Bitcoin is something that bad guys mostly use - but it's slowly becoming a nonsense story, because according to that, both PayPal and Tesla should also be on the other side of the law if they use Bitcoin. As a result, the focus of the "Bitcoin is bad" story has recently shifted to the environmental impact of mining. You don't have to believe everything you read on the internet, most of the news is mostly speculation and bad journalism.

I guess everyone should approach this report with open mind, we have seen in the past that some claim that bitcoin is often used for illicit activity more than cash, but I doubt this is the case. However, I do believed that there are government agencies trying to destroy bitcoin whichever way they can. That's why as bitcoin enthusiast, we should approach this report with neutrality.

So the conclusion of this statement in your opinion is valid if the use of bitcoin for illegal things is still not big?
I am confused by that, because on the other hand there are groups that agree that bitcoin is often used for crimes, especially terrorism. on the other hand there is this statement, maybe I should look for many sources of reference to see the real facts

The report,written by this ex-CIA director won't make the anti-Bitcoiners shut up.
You can't convince somebody,who desperately wants to believe in a lie.
The FUDsters might stop saying that Bitcoin is a "currency of the criminals",but they will keep saying that Bitcoin is a bubble or a ponzi scheme.The FUD will never stop.
This report shows things,that the average Bitcoin supporter already knows-Fiat is more popular than Bitcoin,when it comes to illicit finance and money laundering.There's no surprise for us here.

The report pointed out repeatedly that Blockchain is the best forensic tool available for tracing transactions. It states multiple times that authorities can trace coins that have gone through mixers, when they go for it. Does that render anonymizing platforms useless in the long run? In a probable future where Bitcoin is going to be used for all sorts of financial transactions, would it be a good thing that the governments will have all the control over how normal, middle-class people manage their money?

I don't know about the developed world but a lot of people in developing countries often pin their hopes for a comfortable retirement on pieces of obscure lands bought in the hope of appreciation. When such assets appreciate, the transactions happen in cash while the transaction amount that appears on paper trail is lesser. In a world with cryptocurrencies, it'll be impossible to do anything like this. Ditto for small businesses, self-employed blue-collar workers using cash to earn a little extra. Some call it tax evasion but does it bode well for the common people?

The real money launderers don't have to worry as they have plenty of options like HSBC, Citibank to do it for them in far more sophisticated ways. The report raises more questions than answers. Though as a purely lobbying and PR exercise, there is nothing better than an ex-CIA director endorsing the use of Bitcoin.

It is pretty simple actually, instead of looking at bitcoin alone you should look at bitcoin in comparison with other payment systems. Bitcoin in comparison is the most transparent way of transferring money, that means while you can easily hide your money trail using fiat systems you will have an extremely difficult time doing it in bitcoin. That means fiat will remain the dominating currency used for illicit activities.

This is even happening less after the introduction of anon-coins which are created with one purpose and one purpose only: to have completely anonymous transactions.

Not to mention that there are a lot of crimes that are going on without being monitored by the law enforcement, maybe this stats were just the activities that were caught, there is probably more.

You cannot identify all of those kinds of transactions on Bitcoin due to its nature. If you are able to, then there is no privacy with Bitcoin. I'll take any studies like these with a pinch of salt. It relies on linking those organisations which are known or cracked down with their transactions being associated. This means that you won't be to identify transactions which are hidden well or unlinked. Bitcoin is still mostly the method used with ransomware or other smaller crimes.

Given that the price of Bitcoin has been rising steadily, I won't be surprised if it gets more viable for large scale money laundering in the far future.

This actually does not need much spelling out to people. Only the Bitcoin haters are giving dignity to this accusation.

When Bitcoin started it was probably something only appreciated by the nerdy and the geeky; it doesn't have a price yet, after all. And while its use soon grew underground, how much percentage of underground transactions was done through Bitcoin? I bet it was less than 1%. So this accusation is garbage right from the start.

If they wanted to curb illegal transactions objectively, without prejudice against this rising independent currency, they should have stuck their noses into fiat.

@buwaytress. Also, the former CIA director is working with the new council Coinbase has formed with Fidelity and Square. What other works might the former CIA director be doing to protect the agenda of the members of this council? I might be watching too much conspiracy movies again hehehe.

Not to be a downer or anything -- I'm as cautious with the good as I am with the bad, when it comes to experts from that part of the political agenda.

Also, don't think he actually proved anything, just found a lot of evidence that contradicts past conclusions/findings from people on his side of the fence.

And hasn't it been old news since at least Silk Road and including data from Chainalysis (which CIA or FBI uses, can't recall) as early as 2016 that Bitcoin's use in illicit activities is just really, really low, and keeps getting lower? Edit: the very same "less than 1%" data from Chainalysis is referenced in this report.

Still pretty interesting though!

I guess the weight of this research is given by the fact that it comes from a man who was in high positions in that agency, and everyone knows how powerful that agency is, and that it has access to all possible data. However, it should be emphasized that his career in the agency was at its peak from 2010 to 2013, and that after that he devoted himself to some other jobs. Interestingly, it was he who was in the role of daily intelligence briefer at the time of the 2001 attacks and that he was among the first to blame Al-Qaeda for the attacks.

As for his research, it is quite logical that anyone who wants to look at things objectively will come to the same conclusion - unless from the beginning he has the goal of constructing lies and presenting them that way. Today's criminals prefer cash because it's the most effective way to cover their tracks, and I think most are still technically quite incapable of using Bitcoin at all.

Ok, that's intersting and all but can you please stick to the press guidelines before posting? Can you edit your thread title to include both the date and the source like everyone else does? Thanks

On the report per sé, I don't know if that's good or bad, certainly shows how the naysayers bluff when they say bitcoin is used by criminals.

The storyline Forbes created for this report is on Janet Yellen and her campaign against bitcoin and the cryptospace. The report might have exposed what I have said before that she does not care about the truth or the lies on bitcoin. She only wants support and a big budget for her campaign hehehehe.

In any case, the skeptical me is asking what the crypto council for innovation is doing with a former CIA director and what might be the other things he is doing for the council.



Bitcoin just received a strong vote of confidence from an unlikely source, a former acting director of the Central Intelligence Agency. In so doing, he put senior government officials who issue public warnings about bitcoin’s alleged use by criminals, such as Treasury Secretary Janet Yellen, on notice.

Source https://www.forbes.com/sites/stevenehrlich/2021/04/13/janet-yellen-bitcoin-and-crypto-fearmongers-get-pushback-from-former-cia-director/

Former Central Intelligence Agency (CIA) Acting Director Michael Morell wrote a report titled “An Analysis of Bitcoin’s Use in Illicit Finance”. The ex-government employee had over 33 years working at the Agency.

Published by the Crypto Council for Innovation, Morell’s investigation attempts to disprove a thesis defended by many authorities around the world: Bitcoin is a tool to finance cybercrime and other illicit activities.

Morell considers Bitcoin to have a growing momentum and a spreading use as a store of value. Endorsed by companies like Tesla and MicroStrategy, cryptocurrency is riding a major wave of adoption.

To achieve his goal, Morell consulted many experts in financial services, payment systems, global intelligence, even former senior government officials. The Ex-CIA director himself used to believe Bitcoin and cryptocurrencies are a convenient way of sending money anonymously.

However, the research made him changed his mind. He was able to reach important conclusions: Bitcoin’s use as an illicit finance tool is “significantly overstated” which fiat currency is used for Illicit or Crime than cryptocurrency