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Federal Agents Investigating Bitcoin Money Laundering Extorted, Stole Over $1 Million In Bitcoin
This is one of those sad times when The Onion realizes it has badly, and permanently, missed its IPO window.
Just released from the Department of Justice
Former Federal Agents Charged With Bitcoin Money Laundering and Wire Fraud
Agents Were Part of Baltimore’s Silk Road Task Force
Two former federal agents have been charged with wire fraud, money laundering and related offenses for stealing digital currency during their investigation of the Silk Road, an underground black market that allowed users to conduct illegal transactions over the Internet. The charges are contained in a federal criminal complaint issued on March 25, 2015, in the Northern District of California and unsealed today.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Division, Special Agent in Charge José M. Martinez of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) San Francisco Division, Special Agent in Charge Michael P. Tompkins of the Justice Department’s Office of the Inspector General Washington Field Office and Special Agent in Charge Lori Hazenstab of the Department of Homeland Security’s Office of the Inspector General in Washington D.C. made the announcement.
Carl M. Force, 46, of Baltimore, was a Special Agent with the Drug Enforcement Administration (DEA), and Shaun W. Bridges, 32, of Laurel, Maryland, was a Special Agent with the U.S. Secret Service (USSS). Both were assigned to the Baltimore Silk Road Task Force, which investigated illegal activity in the Silk Road marketplace. Force served as an undercover agent and was tasked with establishing communications with a target of the investigation, Ross Ulbricht, aka “Dread Pirate Roberts.” Force is charged with wire fraud, theft of government property, money laundering and conflict of interest. Bridges is charged with wire fraud and money laundering.
According to the complaint, Force was a DEA agent assigned to investigate the Silk Road marketplace. During the investigation, Force engaged in certain authorized undercover operations by, among other things, communicating online with “Dread Pirate Roberts” (Ulbricht), the target of his investigation. The complaint alleges, however, that Force then, without authority, developed additional online personas and engaged in a broad range of illegal activities calculated to bring him personal financial gain. In doing so, the complaint alleges, Force used fake online personas, and engaged in complex Bitcoin transactions to steal from the government and the targets of the investigation. Specifically, Force allegedly solicited and received digital currency as part of the investigation, but failed to report his receipt of the funds, and instead transferred the currency to his personal account. In one such transaction, Force allegedly sold information about the government’s investigation to the target of the investigation. The complaint also alleges that Force invested in and worked for a digital currency exchange company while still working for the DEA, and that he directed the company to freeze a customer’s account with no legal basis to do so, then transferred the customer’s funds to his personal account. Further, Force allegedly sent an unauthorized Justice Department subpoena to an online payment service directing that it unfreeze his personal account.
Bridges allegedly diverted to his personal account over $800,000 in digital currency that he gained control of during the Silk Road investigation. The complaint alleges that Bridges placed the assets into an account at Mt. Gox, the now-defunct digital currency exchange in Japan. He then allegedly wired funds into one of his personal investment accounts in the United States mere days before he sought a $2.1 million seizure warrant for Mt. Gox’s accounts.
Bridges self-surrendered today and will appear before Magistrate Judge Maria-Elena James of the Northern District of California at 9:30 a.m. PST this morning. Force was arrested on Friday, March 27, 2015, in Baltimore and will appear before Magistrate Judge Timothy J. Sullivan of the District of Maryland at 2:30 p.m. EST today.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by the FBI’s San Francisco Division, the IRS-CI’s San Francisco Division, the Department of Justice Office of the Inspector General and the Department of Homeland Security Office of the Inspector General in Washington D.C. The Treasury Department’s Financial Crimes Enforcement Network also provided assistance with the investigation of this case. The case is being prosecuted by Assistant U.S. Attorneys Kathryn Haun and William Frentzen of the Northern District of California and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section.
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Some additional, and simply epic in their stupidity details from the criminal complaint:
The full criminal complaint can be found here.
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That is nothing there is an outfit that has printed over $4 Trillion counterfeit bills....get over and arrest the people at the FED!
Force, aka "fonestar"..... LMAO.... maybe he was also "Dread Pirate Fonestar" instead...
The FEDS do not actually investigate so who dialed these guys out or how did the FEDs accidentally find out and were forced to do their jobs ?
Getting it while the getting is good!
Irritating when folks pretend to be someone else...
Crime and law enforcement is a distinction without a difference.
Fonestar is getting pounded in the ass as we discuss this.
I told everyone that you couldn't trust bitcoin er...the feds er...the banks..er..fuck you just can't trust anyone -- buy gold asap
BITCOIN IS SO SAFE AND SECURE!!!
Suckerz.
Yes it is, never had any stolen. Had my debit card hacked over 5 times.
I thought you guys compared this to gold....
How do you figure that moron?
It's ok Foneystar, we won't tell anyone your secret. ;-)
I thought BitCoin was supposed to be anonymous.
You were wrong then. Bitcoin is pseudonymous. If you want anonymity you need to use bitcoin tumbler.
how does bitcoin tumbler bypass the bank accounts to get the money in and out of the bitcoin exchange? Doesn't that defeat the purpose?
remember folks...like that...folks....a judge recently ruled that law enforcement does not have to know the laws.
http://www.policemag.com/channel/patrol/news/2014/12/16/scotus-rules-evi...
so they will plead "what" and be good....
what was the old punishment for betraying your oath as a public servant?
cut off your nose, put you in a sack with a wolverine and toss you in the river?
something like that....
That bastard, $500k of that was mine!
2 years off with pay while they decide if you did something wrong.
"Dread Butt-Pirate Fonestar" instead
But, but, bitcoin is so secure TPTB could never trace you and your activities... it's a protocol and stuff.
LOLOLOLOL
But, But, you are a FOOL, diversification is KEY, I own 10 Physical BitCoins and I am glad I do. If these Bozo's only knew how to purchase and hold things of value they would not be a FOOL !
I believe in REAL Wealth.
So you own fake version of fake money?
Retard.
Reading the complaint, it could very well be that DPR gave them the hint. He passed 100k$ in bitcoin to french made for information. He could probably remember that in jail.
Agents Force and Bridges (even their names sound phoney) must learn to share. AG Eric Holder is retiring soon and he expects his cut. Others in the Silk Road task force knew enough to funnel the bitcoin rakeoff upstream.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
If I could quintuple down arrow your post I would....
Why does this thing still have an account on ZH?
So, now we know why there was a shooting at Ft. Meade??? These defendants are or were in Maryland.
And it's reported that the 2 men were dressed as women - I bet one of them was in a French Maid uniform...
that is why u must vote for owe malley....he has the experience needed to be prs-o-dent....and i knew drudge was not as presented..like a rebel sorta....but with owemalley being on it everyday...drudge is more own than i even realized....and that is coming from a guy that buys his tin foil from costco....and please dont be harsh on ur judgement if possible, but i am right in the middle of a hypo attack...some will know first hand what i mean, others will know what i mean but have no actuall experience and others will be wtf is he talking about....
Untraceable bitcoin ?
Pull the other leg, it has bells on.
Yep, that's marketing but the only mistake was they were the wrong acronym. If it had been the IRS it would've been completely alright and the number would be a lot bigger....
No, not untraceable. There is a hash code which is difficult to trace, but not impossible.
That's not what the Fonestar Brigade says...
The fonestar brigade is either mentally retarded or on the NSA payroll. Either way to hell with shitcoin already.
Fonestar is doing bitcoin a great disservice claiming it's anonymous. It takes some effort to make it anonymous. Rather, default state is that it's transparent, and so was agent's operations.
When has fonestar ever claimed that Bitcoin is anonymous? Anonymity is a personal preference and does not pertain to the protocol in itself!
Agent Satoshi, that kinda has a nice ring to it.
"Pssst, hey kid, yeah you, over heya. Could I interest you in some duji? You can pay with the BitShit, no one will ever know."
Sure, just run it through tumbler and we have a deal.
Who has a name like "FORCE"? "Hello, I'm Carl Force..glad to meet you."
http://www.johnforceracing.com/
not surprised at all. the doj is a criminal enterprise and protection racket.
He must have froze the assets of one in the protected class. Oops that will cost ya.
No, he just witheld the loot from his boss. Everyone in the mafia knows you give the boss a cut.
It was no longer profitable or convenient to keep him around. Exactly like the mafia.
Probably froze some senator's funds without knowing it.........ahhh, the war on poverty/drugs/terrorism continues.
"Bridges placed the assets into an account at Mt. Gox, the now-defunct digital currency exchange in Japan. He then allegedly wired funds into one of his personal investment accounts in the United States "
Fairly easy paper trail right there. His Mt. Gox account linked to him, His investment account. His investment account wasn't tied to Mt.Gox, so there will be a middle man to tie it together. Should be open and shut case.
What a dumbass, there are better ways to move money, he should of known better since that was part of his job.
Bob Dylan once said, "A man must be honest to live outside the law"
You can imagine by the arrogance of their opinion of the FEDS.
my first thought "the arrogance (and malfeasance) of Officialdom"
FBI’s San Francisco Division, the IRS-CI’s San Francisco Division, the Department of Justice Office of the Inspector General and the Department of Homeland Security Office of the Inspector General in Washington D.C. The Treasury Department’s Financial Crimes Enforcement Network
Justifying the need for alphabet soup again.........
And who believes that many different vain gubmint agencies cooperated with each other?
It was like a DHS blockchain or sumpin ;-)
Wasn't Force & Bridges the names of the cops on Miami Vice?
No, you're thinking of that other show Don Johnson did after Miami Vice.
Bitcoin, only slightly better than fiat in many ways.
The good news is you still have exciting educational adventure ahead of you on what is Bitcoin.
Once it becomes clear that no one will be held accountable for anything, absolute power will corrupt absolutely.
Moral hazard is a real bitch like that...
Bitcoin is a lot easier for the government to find than my stack.
Completely false. There is nothing easier than taking physical stuff.
Finding and taking are two different things. Both gold and bitcoin can be hidden very well, given some effort.
Bitcoin has the advantage that even if "found" (encrypted wallet found or public addresses identified) it can strongly resist theft, again, given a little effort (having good security practices with e.g. a memorized encryption password or wallet seed).
Casting Call:
Brad Pitt as FORCE
Edward Norton as BRIDGES
Arm yourselves the FEDs are coming.
No shit! You got that right and it is only a matter of time before roadside shakdowns demanding sex with the kiddies in the back seat. Lawlessness and rot from the head down. Prepare to be boarded.
DEA agent - should have stuck to what they know, coke and whores.
not bad
but the leader in the clubhouse is still the lead investigator (SEC) into Madoff ... marrying madoff's niece
I am Jack's Lack of Surprise.
Yay DEA!
DEA and SS. That explains it all.
These pieces of GOV shit will never see a day in jail, just like their murdering cohorts behind the local blue line.
Duplicity in the system renders it useless, without credibility.
Our government is hopelessly out of control. Prepare for the worst.
That is a rank contradiction. If it is yours, that implies you have control over it. If you do not have control over it, then do not misuse the language (i.e. use 'they' instead of 'we').
naughty
sounds like rats are leaving the sinking ship, kinda like cops who ask you if you have cash on you....for the good of society and to protect the children (from your horrid cash)....what a world, what a world...
Blatant thievery.
That is evidence.
The lesson would appear to be "do not make the arrest."
I never understood what gave the Government the right to the monies in the first place. If there was a fraud being committed shouldn't the kids who had their money stolen get their money back?
Of course at least now we know this is a crime...meaning money that can be traced BACKWARDS.
Now about those cost over runs on the new Enterprise...
These guys are going to need some really good TwoBitLawyers.
"Ladies & gentlemen of the jury, my clents are completely BitInnocent. Everyone knows BitCoin is absolutley untraceable and anonymous. If the BitGlove don't fit, you must aquit!"
That all depends on the Bitjudge and Bitjury, that is if the BitMSM doesn't hang the Bitperps inthe Bitmedia.
But seeing as this Bitnonsense is not visible and Bitwallets cannot be bittraced, these Bitsecretservice and BitDEA guys will probably take a Bitwalk to MountGov which no one has ever climbed or seen yet on the Silk Road where all the Bitcoin people travel.
Well thats good to know, that the BitPerp's BitAccounts weren't actually BitFrozen and/or BitConfiscated, so now they can hire the best BitLawyers in all of BitLand cuz it obviously can't be BitTraced BitBack to BitThem, they're BitNonymous! ;-)
I'm now BitConfused!
You need to learn the rules of the game of Bitcoin Bitchess!
Like I said before the line between right and wrong is gone..its now steal all you can and if you get caught..ask for forgiveness...
or just donate to the democrats and all will be forgiven...just ask Jon Corzine or Marc Rich
Hmmm,
I seem to remember an IT guy, his wife and grandchildren burned alive in their McMansion in MD.
Nah, couldn't be connected.
Stop those presses. I've got to run & refill my popcorn stash.
Meth, hookers and bitcoins. Welcome to 2015.
Well, at least BitCoin won't rot your teeth out or make your pecker fall off.
So its got that going for it! ;-)
What is shocking is, not that these agents were criminals, but simply that they were charged!
I suppose that since most US Federal agents are criminals, the DOJ was forced to charge this pair because it came out in court and they were not able to keep it quiet.
This is the problem with money or other property...when claimed as stolen the actual person from whom it was stolen from will want it back.
Drug money on the other hand....
Bitcoin - like money in the bank.
Gold! - Everywhere you want to be! (TM)
Try to spend your shitcoins anywhere where there is not a computer. (99.99995% of the earth surface)
Good luck with that.
The spear chuckers in africa and the Sherpas at Mt Everest will scoff at your BC hash. Get the idea?
Evidently, you are so smart, the /irony tag has to be spelled out for you.
'cause Bitcoin is unhackable and banks are so safe. Get the idea?
I do not use banks. I do not use electron money. I use the tried and true that has been the "gold" standard for the last 10,000 years and will continue to be so behind the scenes of your imaginary chits. Remember, your chits are still denominated in paper currency and the next reserve currency will be backed by... wait for it..... GOLD. Not lines of hash.
When you are able to put minimum 500K where your mouth is sonny, then you can talk some real "cents".
Until then your shitcoins are still that. Shit, and beneath all the fraud and chits, there is still gold.
In the decades to come, you may have the "come to jesus" moment when you look back and see the truth to my words.
Period.
End of line.
Try to stop making a fool of yourself in front of adopters who understand the new game.
LOL, I bet I have orders of magnitude more AU than your hash codes on paper. It is hackable. Good luck with the electron money your puppet masters are herding you sheep into.
Government's Agents are overpaid, underworked, underqualified twats!
"Government's Agents are overpaid, underworked, underqualified twats!"
You forgot treasonous.
The banksters need to repay us.
An agent of empire looked in the mirror and saw a terrorist. A further looked revealed a lurking guillotine as well.
I guess they got bored because the whore houses were closed that day.
Of course.
"The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty"
Uh Huh. Be lucky a panel of ZHr's aren't sitting on the jury. (https://www.youtube.com/watch?v=uKZL2ogi2h4)
ps - And what's with the photo of "The Picard"? Are we trying to blame the French for this too? ;>
Calling fonystar, calling phonystar. Front and center with your shitcoins!
Get a life peasant. Before you talk shit you should educate yourself.
https://en.bitcoin.it/wiki/Main_Page
I did long ago idiot. Gold is everywhere shitcoins are not accepted...as well as preferred everywhere shitcoins are accepted.
Try to get a sherpa, or anyone else for that matter, anywhere in the world to accept a hash instead of gold. You'll be in for a rude awakening there buddy.
Fact
"Federal Agents Investigating Bitcoin Money Laundering Extorted"
As opposed to the private Money Laundering cartel that is known as "The Federal Reserve"?
Clearly the Fed doesn't like competition, not even from 'the other Fed'.
The Fed launders
The IRS extorts
Was this guy not invited to the Sex party in Colombia?
Their real crime was not sharing with their bosses and the empire.
The banksters need to repay us.
No honor, or Constitution, amongst thieves.
The fed is fed but the FED is private. Ergo the FED does not like competition from the feds. Clear?
And then they tried to crash their way into the NSA wearing wigs and dresses.
Nothing says secure like a virtual currency that mimicks the current system,while pretending to be an alternative to banker fiat, that pumps it's "value" like the housing market was based on "value" and to leave it to a few people who can lock you out in a millisecond ith all you currency.
You don't hold it, you don't own it. How many times must people learn this lesson?
Government stealing the funds for themselves = legal
Agents of the government stealing funds for themselves = illegal.
Oh I see. Makes perfect sense.
A few months at Club Fed, and all will be forgiven.
Prompting a beta test to think tank steering committee groups on a digital currency transition. Media bait and fake outcome.
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