Is it possible that Bitmixer's decision to shut down was related to this case? Like they knew before everyone else? Maybe either they were involved or the revelation makes them less confident in the ability to "wash" coins, like their shutdown announcement declared.
I'm also wondering if the recent darknet market shutdowns provided the last clues to make this arrest, like a bunch of dominoes.
Topic: Mt. Gox coins laundered through BTC-e (Breaking details) - page 2. (Read 1707 times)
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The graphic illustrating the bitcoin traffic is impressive, if Vinnick had used a chip mixer...and not returned to the "scene of the crime" they probably never would have caught him.
Dude I hope that you realise that based only on this beautifully created graphic we can not say that Vinnik is guilty.
And FBI will operate only with this drawings..Saying that opening the Bitcoin Trace Technology is Top Secret and Court will be presued to belive THIS Vector Grafic drawing.
I can draw a lot more vectors if you wish..
Its nothing..I never belived any of them. FBI is dirty structure they probably busted Alphabay ,Hansa and BTC-E because was declined to receive bribe from admins..
More likely Vinnik was the one who helped to clean stolen Bitcoins from Mt.Gox (read he bought Bitcoins cheap from dirty hands), but not the one who drained Mt.Gox wallet.
But we still can not trust FBI for sure. They said us that he is the one and they have some proofs according to Bitcoin trace records.
For sure FBI will not open technique with what they trace Bitcoins and court need to belive them blindly. They will just show some drawings etc. etc..
Offcourse if Vinnik will be extradicted , he will be guilty by US court decision and I have no reason to trust US courts at all.
All this is bullshit.
Hopefully Greece will not extradict him. Its not a Thailand , there was precidents before when Greece declined extradiction to states.
But we still can not trust FBI for sure. They said us that he is the one and they have some proofs according to Bitcoin trace records.
For sure FBI will not open technique with what they trace Bitcoins and court need to belive them blindly. They will just show some drawings etc. etc..
Offcourse if Vinnik will be extradicted , he will be guilty by US court decision and I have no reason to trust US courts at all.
All this is bullshit.
Hopefully Greece will not extradict him. Its not a Thailand , there was precidents before when Greece declined extradiction to states.
Depositing funds stolen from Mt. Gox right back into gox, now that's a rather bold move.
I agree. This report tends to exonerate Mark Karpeles of the thefts, but also reinforces my perception of him as clueless as to what was going on in his own operation.
I believe he wasn't clueless, but ignorant. He thought his system is secure and never bothered to monitor the balances. Also, he didn't give his employees access to cold storage, so nobody could check how much they actually have and compare to API balances.
So giving his employees access to the cold storage would make significant difference, no? Karpeles is a dick, sure. He is ignorant of what is going on inside his exchange ergo the supposed "hack" of Gox. But handling out control over the cold storage to his employees would have been a dumb move since he would have handed the money up for grabs to some other people with their motives unknown to him.
This is what I'm saying, he had to at least be complicit in the theft, at least according to these latest details. If they emptied out massive amounts of bitcoin multiple times (that's what I got from the report), how did they not see this, and why did they keep using the compromised wallets? Especially of the case of coins going straight from GOX to BTCE and sitting, there has to be a link in all this, or both platforms were so negligent that it was criminal
Feeling sad about all this. BTC-e was one of the most trusted exchanges out there. It was one of the oldest as well, being established in 2011. And more importantly, it was perhaps the only major exchange which doesn't ask for ID verification.
Depositing funds stolen from Mt. Gox right back into gox, now that's a rather bold move.
I agree. This report tends to exonerate Mark Karpeles of the thefts, but also reinforces my perception of him as clueless as to what was going on in his own operation.
Hmm, still very interesting either way. Following weeks should reveal much more.
Will mtGox customers finally get their BTC balances returned? Imagine the value now, they forced everyone to hodl since 2013...
Depositing funds stolen from Mt. Gox right back into gox, now that's a rather bold move.
I agree. This report tends to exonerate Mark Karpeles of the thefts, but also reinforces my perception of him as clueless as to what was going on in his own operation.
I believe he wasn't clueless, but ignorant. He thought his system is secure and never bothered to monitor the balances. Also, he didn't give his employees access to cold storage, so nobody could check how much they actually have and compare to API balances.
So giving his employees access to the cold storage would make significant difference, no? Karpeles is a dick, sure. He is ignorant of what is going on inside his exchange ergo the supposed "hack" of Gox. But handling out control over the cold storage to his employees would have been a dumb move since he would have handed the money up for grabs to some other people with their motives unknown to him.
Depositing funds stolen from Mt. Gox right back into gox, now that's a rather bold move.
No kidding, eh? But crypto scumbags are known for their blatant psychopathy and cast iron balls. Would not surprise me in the least. I swear the Mt. Gox stain is never going to wash off. It's become an integral part of bitcoin's history and it'll still be a topic of discussion in 2042. You mark my words. I'll be dead then, but feel free to quote this.
"And you don't need to worry about doing a TPS report on this one."
It's like the movie office space, he missed a decimal and got way too big for his own good.
Peter Gibbons: [Explaining the plan] Alright so when the sub routine compounds the interest is uses all these extra decimal places that just get rounded off. So we simplified the whole thing, we rounded them all down, drop the remainder into an account we opened.
Joanna: [Confused] So you're stealing?
Peter Gibbons: Ah no, you don't understand. It's very complicated. It's uh it's aggregate, so I'm talking about fractions of a penny here. And over time they add up to a lot.
Joanna: Oh okay. So you're gonna be making a lot of money, right?
Peter Gibbons: Yeah.
Joanna: Right. It's not yours?
Peter Gibbons: Well it becomes ours.
Joanna: How is that not stealing?
Peter Gibbons: [pauses] I don't think I'm explaining this very well.
Joanna: Okay.
Peter Gibbons: Um... the 7-11. You take a penny from the tray, right?
Joanna: From the cripple children?
Peter Gibbons: No that's the jar. I'm talking about the tray. You know the pennies that are for everybody?
Joanna: Oh for everybody. Okay.
Peter Gibbons: Well those are whole pennies, right? I'm just talking about fractions of a penny here. But we do it from a much bigger tray and we do it a couple a million times.
"If you could just.... launder this money..... thaaaat would be greeeeeaaaaat...."
Depositing funds stolen from Mt. Gox right back into gox, now that's a rather bold move.
I agree. This report tends to exonerate Mark Karpeles of the thefts, but also reinforces my perception of him as clueless as to what was going on in his own operation.
I believe he wasn't clueless, but ignorant. He thought his system is secure and never bothered to monitor the balances. Also, he didn't give his employees access to cold storage, so nobody could check how much they actually have and compare to API balances.
It's like the movie office space, he missed a decimal and got way too big for his own good.
Peter Gibbons: [Explaining the plan] Alright so when the sub routine compounds the interest is uses all these extra decimal places that just get rounded off. So we simplified the whole thing, we rounded them all down, drop the remainder into an account we opened.
Joanna: [Confused] So you're stealing?
Peter Gibbons: Ah no, you don't understand. It's very complicated. It's uh it's aggregate, so I'm talking about fractions of a penny here. And over time they add up to a lot.
Joanna: Oh okay. So you're gonna be making a lot of money, right?
Peter Gibbons: Yeah.
Joanna: Right. It's not yours?
Peter Gibbons: Well it becomes ours.
Joanna: How is that not stealing?
Peter Gibbons: [pauses] I don't think I'm explaining this very well.
Joanna: Okay.
Peter Gibbons: Um... the 7-11. You take a penny from the tray, right?
Joanna: From the cripple children?
Peter Gibbons: No that's the jar. I'm talking about the tray. You know the pennies that are for everybody?
Joanna: Oh for everybody. Okay.
Peter Gibbons: Well those are whole pennies, right? I'm just talking about fractions of a penny here. But we do it from a much bigger tray and we do it a couple a million times.
It's like the movie office space, he missed a decimal and got way too big for his own good.
BTC-e should be accused of money laundering. If what the article says is true, some 300,000 BTC were deposited at this exchange. That is huge! What about KYC regulations? If someone comes up with 300,000 BTC, this should raise alarm!
It will be interesting to see if he was just the seller or the actual hacker himself.
From the article: To be clear, this investigation turned up evidence to identify Vinnik not as a hacker/thief but as a money launderer;
This story now has the plot line for a Hollywood movie! Hacking, theft, double spending, money laundering, Russian on the lamb in some sleepy town on a Greek island. Let's cast Anna Chapman as Vinnick's dame and start shopping this thing to studios!
Quote from: blog article
In addition, the shared keypool of the wallet.dat file lead to address reuse, which confused MtGox's systems into mistakenly interpreting some of the thief's spending as deposits, crediting multiple user accounts with large sums of BTC and causing MtGox's numbers to go further out of balance by about 40,000 BTC. None of these users seem to have reported their "sudden luck".
I wonder who among us benefited from the 40,000 BTC credits. I suppose if it was due to address reuse the people who would have benefited were those that were stolen from to begin with, no?
The graphic illustrating the bitcoin traffic is impressive, if Vinnick had used a chip mixer...and not returned to the "scene of the crime" they probably never would have caught him.
Depositing funds stolen from Mt. Gox right back into gox, now that's a rather bold move.
I agree. This report tends to exonerate Mark Karpeles of the thefts, but also reinforces my perception of him as clueless as to what was going on in his own operation.
Depositing funds stolen from Mt. Gox right back into gox, now that's a rather bold move.
It will be interesting to see if he was just the seller or the actual hacker himself.
http://blog.wizsec.jp/2017/07/breaking-open-mtgox-1.html
"We won't beat around the bush with it: Vinnik is our chief suspect for involvement in the MtGox theft (or the laundering of the proceeds thereof). This is the result of years of patient work, and these findings were surely independently uncovered by other investigators as well. Everyone who worked on the case have patiently kept quiet while forwarding findings to law enforcement, so as not to tip suspects off and to maximize the chances of arrests."
"We won't beat around the bush with it: Vinnik is our chief suspect for involvement in the MtGox theft (or the laundering of the proceeds thereof). This is the result of years of patient work, and these findings were surely independently uncovered by other investigators as well. Everyone who worked on the case have patiently kept quiet while forwarding findings to law enforcement, so as not to tip suspects off and to maximize the chances of arrests."
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