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Australian Police Storm Home Of Outed Bitcoin "Founder"

Tyler Durden's picture




 

On Tuesday, Wired and Gizmodo revealed the identity of the man they say is Satoshi Nakamoto, the pseudonymous creator of Bitcoin. 

Although they stop short of saying that the “trove” of evidence obtained from Gwern Branwen (another pseudonym), an independent security researcher and dark web analyst is conclusive, they seem all but certain that Nakamoto is actually a 44-year-old Australian named Craig Steven Wright. 

In the world of bitcoin enthusiasts Wright was, until yesterday anyway, a “nobody.” When he spoke via Skype at the Bitcoin Investor’s Conference in Las Vegas, the moderator had to ask him who he was.

Branwen allegedly began receiving leaked documents from a source close to Nakamoto last month - he then passed along the information to Wired. According to Wired’s detailed account, the documents immediately led to several direct, publicly visible connections between Nakamoto and Wright. Here they are: 

  • An August 2008 post on Wright’s blog, months before the November 2008 introduction of the bitcoin whitepaper on a cryptography mailing list. It mentions his intention to release a “cryptocurrency paper,” and references “triple entry accounting,” the title of a 2005 paper by financial cryptographer Ian Grigg that outlines several bitcoin-like ideas.
  • A post on the same blog from November, 2008. It includes a request that readers who want to get in touch encrypt their messages to him using a PGP public key apparently linked to Satoshi Nakamoto. A PGP key is a unique string of characters that allows a user of that encryption software to receive encrypted messages. This one, when checked against the database of the MIT server where it was stored, is associated with the email address satoshin@vistomail.com, an email address very similar to the satoshi@vistomail.com address Nakamoto used to send the whitepaper introducing bitcoin to a cryptography mailing list.
  • An archived copy of a now-deleted blog post from Wright dated January 10, 2009, which reads: “The Beta of Bitcoin is live tomorrow. This is decentralized… We try until it works.” (The post was dated January 10, 2009, a day after Bitcoin’s official launch on January 9th of that year. But if Wright, living in Eastern Australia, posted it after midnight his time on the night of the 9th, that would have still been before bitcoin’s launch at 3pm EST on the 9th.) That post was later replaced with the rather cryptic text “Bitcoin – AKA bloody nosey you be…It does always surprise me how at times the best place to hide [is] right in the open.” Sometime after October of this year, it was deleted entirely.

Of course this isn't the first time Nakamoto has been "found" and we'll leave it to readers to review the Wired piece and evaluate the evidence in its entirety, but it seems fairly clear that Wired managed to convince the Australian Federal Police because on Wednesday, they broke into what Reuters describes as "a modest brick house in the leafy middle class suburb of Gordon" in an apparent raid on Wright's property. 

"Locksmiths broke open the door of the property, in a suburb on Sydney's north shore," Reuters writes, adding that "when asked what they were doing, one officer told a reporter they were 'clearing the house.'"

"More than 10 police personnel arrived at the house in the Sydney suburb of Gordon at about 1.30pm. Two police staff wearing white gloves could be seen from the street searching the cupboards and surfaces of the garage. At least three more were seen from the front door," The Guardian adds.

Authorities then proceeded to "clear" Wright's businesses as well. Again, from Reuters: "A reporter who approached an office listed as the location of two of Wright's registered businesses, DeMorgan Ltd and Panopticrypt Pty Ltd, in another Sydney suburb, was turned away by police with one officer saying: 'There's an operation going on at the moment, I can't answer any questions.'" 

Yes "an operation" was going on and although you'd have to be completely naive to believe that the raids aren't connected with the revelation that Wright may be Nakamoto, that was the official line: "Officers' presence at Mr. Wright's property is not associated with the media reporting overnight about bitcoins".

Of course not - it's a complete coincidence.

As Reuters goes on to remind readers, "the treatment of bitcoin for tax purposes in Australia has been the subject of considerable debate [and] the ATO ruled in December 2014 that cryptocurrency should be considered an asset, rather than a currency, for capital gains tax purposes."

Police referred all inquiries to the Australian Tax Office, which in turn said it wouldn't comment due to legal confidentiality of individuals' tax affairs.

Wright lived at the home with his wife Ramona Watts, who landlord Gary Hayres described as “a lovely lady," "They didn’t seem bad," he added.

Amusingly, one neighbor said Wright had a nickname: "Cold fish Craig." 

Gizmodo published a transcript of an interview Wright allegedly conducted with Australian Tax authorities (embedded below). "I did my best to try and hide the fact that I’ve been running bitcoin since 2009 but I think it’s getting – most – most – by the end of this half the world is going to bloody know," the document quotes Wright as saying. 

As Gizmodo goes on to recount, "Wright appears to have been trying to persuade the Australian government to treat his Bitcoin holdings as currency, as opposed to an asset subject to greater taxation. Without this regulatory move, his business interests would be scuttled."

John Chesher, Wright’s accountant, who attended one of the ATO meetings told Gizmodo that he "may have" told autorities that Wright was in possession of a Satoshi-sized Bitcoin sum. For the uninitiated, a "Satoshi size sum" is rumored to be somewhere in the neighborhood of nine figures worth of the cryptocurrency. 

So clearly, the idea that the raids and the revelations published by Wired and Gizmodo aren't related is patently absurd, but hey, it's the governement so what do you expect? 

Regardless of whether Wright is Satoshi (and we wouldn't be entirely surprised to see this story fade away like those that came before it), the bottom line here seems to be that the Australian Tax authority thinks this is a guy who may be sitting on a rather sizeable fortune that isn't getting taxed "properly" and we all know what happens when the government thinks it might not be getting its cut.

*  *  *

20140218 Transcript Redacted

 

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Wed, 12/09/2015 - 18:20 | 6901433 junction
junction's picture

Every cop hopes he finds that bitcoin locker stuffed with bitcoins.

Wed, 12/09/2015 - 18:26 | 6901459 commander gruze?
commander gruze?'s picture

Unfortunately, your honour, when I was on a fishing trip I had this terrible OP_RETURN accident involving my entire possession of bitcoins.

Wed, 12/09/2015 - 18:32 | 6901474 nuubee
nuubee's picture

Why the fuck should law enforcement be invading the home of the man who invented bitcoin? What possible legal justification exists for such a thing?

Wed, 12/09/2015 - 18:34 | 6901483 AriusArmenian
AriusArmenian's picture

None.

Wed, 12/09/2015 - 18:35 | 6901489 crazytechnician
crazytechnician's picture

They beleive he is a tax evader.

Wed, 12/09/2015 - 18:41 | 6901504 nuubee
nuubee's picture

Oh, well, as long as they "believe" he is a tax evader, they can just shoot him on sight, right? Why waste the effort to find evidence?

Wed, 12/09/2015 - 18:57 | 6901547 Manthong
Manthong's picture

If he is Satoshi, and is sitting on 9 figures, his key is in one place only..

and they will have to water board him to try and get it.

 

Wed, 12/09/2015 - 18:58 | 6901553 nuubee
nuubee's picture

For all they know, he lost his key in an unfortunate drink-alcohol-till-memory-loss incident.

Wed, 12/09/2015 - 19:33 | 6901669 SILVERGEDDON
SILVERGEDDON's picture

$$$$$$$$$$ ANTI FIAT NEWS FLASH ! $$$$$$$$$$$$$

Alls I knows is - Coinhead is gonna blow a gasket.

Cue Bitcoin down the toilet flushing sound.

Wed, 12/09/2015 - 19:41 | 6901692 coinhead
coinhead's picture

Even supposing tish was teh real "SATOSHI" how would tish effect Bitcoin whatsoever?  If Henry Ford was jailed after making teh Model T, would all his cars suddenly have disappeared from teh road??

Wed, 12/09/2015 - 19:50 | 6901747 Soul Glow
Soul Glow's picture

One bitcoin for you 19 for me....'cuz I'm the Taxman!

Wed, 12/09/2015 - 19:53 | 6901760 The Pope
The Pope's picture

 "would all his cars suddenly have disappeared from teh road"

 

It just so happens that cars are actual real things instead of 1's & 0's

Wed, 12/09/2015 - 19:59 | 6901788 coinhead
coinhead's picture

You have a pretty 1st century AD concept of "real".  Public school victim maybe?

Wed, 12/09/2015 - 20:23 | 6901919 Manthong
Manthong's picture

“Cue Bitcoin down the toilet flushing sound.”

On the contrary..

If he is Satoshi with 9 figures and they finally get him to cough up the 4, 5 or so figures they want to steal in taxes...

It will do nothing but validate Bitcoin..

If it can be used to pay taxes, it’s money.

Thu, 12/10/2015 - 01:43 | 6903038 One World Mafia
One World Mafia's picture

This time he's Australian.  Last year he was Japanese.

The brains behind Bitcoin is not a young tech genius or a pseudonym for a team of Silicon Valley geeks — but a secretive, 64-year-old Japanese-American man who builds model trains and whose own brother calls him “an a-?-hole,” Newsweek reported Thursday.

http://nypost.com/2014/03/06/man-behind-bitcoins-revealed/

Mon, 12/14/2015 - 22:25 | 6924215 RaceToTheBottom
RaceToTheBottom's picture

"He" is a NSA project

Thu, 12/10/2015 - 09:55 | 6903775 valjoux7750
valjoux7750's picture

Its as real as you want it to be, all my coin are accessible  via debit card. Please do step into the 21st century

Wed, 12/09/2015 - 20:00 | 6901792 coinhead
coinhead's picture

For smoe reason BTC seems about 25% higher in CAD tahn USD?

Thu, 12/10/2015 - 13:07 | 6904863 Tarzan
Tarzan's picture

Satoshi, is that you, or maybe MillionDollarBonus?

I'm guessing you don't own a single bit coin.....

Wed, 12/09/2015 - 20:08 | 6901836 coinhead
coinhead's picture

Ezrbosainr ehre whit lal rehit lusau DUF boyiouslv hvat'ne nearlde nyathign in ixs saeyr.

Wed, 12/09/2015 - 20:14 | 6901870 GooseShtepping Moron
GooseShtepping Moron's picture

Either type in English or piss the fuck off. Your posts are hurting my eyeballs.

Wed, 12/09/2015 - 20:15 | 6901886 coinhead
coinhead's picture

coinhead never pisses off!

Wed, 12/09/2015 - 20:18 | 6901897 The Pope
The Pope's picture

^^^prefers the golden shower^^^

Wed, 12/09/2015 - 21:43 | 6902273 Moustache Rides
Moustache Rides's picture

I heard he is also the Prime Minister of Narnia

Wed, 12/09/2015 - 19:33 | 6901673 coinhead
coinhead's picture

OMG!! SATOSHI WE LOVE YOU!!!

Wed, 12/09/2015 - 20:40 | 6902006 Lorca's Novena
Lorca's Novena's picture

You really need to see someone about your autism , man.

Wed, 12/09/2015 - 21:12 | 6902132 nmewn
nmewn's picture

Actually, "Satoshi" is a middle aged white guy named Craig Steven Wright...whocouldaseenthatonecomin?...lmao!

Wed, 12/09/2015 - 22:36 | 6902446 MalteseFalcon
MalteseFalcon's picture

LOL. So much for the anonymity and safety of bitcoin.  Wright will be coughing up the key to his "wallet" almost instantaneously.

And as  I told you propeller heads before his name isn't "Satoshi".

And lastly Mr. Wright has 9 figures worth of bitcoin, but no way this is a pyramid scheme, right?

Wed, 12/09/2015 - 19:40 | 6901705 Payne
Payne's picture

Would it change matters for One small country to accept bitcoin as its National currency ?

Wed, 12/09/2015 - 19:42 | 6901718 coinhead
coinhead's picture

Yes, it would fuck up teh entire world's monetary system.

Wed, 12/09/2015 - 21:15 | 6902137 nmewn
nmewn's picture

So I just gotta know, are you trying to ponzi up BitShit or destroy it? You're doing one helluva job hurting "the brand".

Jus sayin.

Wed, 12/09/2015 - 22:15 | 6902376 coinhead
coinhead's picture

Coinhead is representing Bitcoin in a mature, easy to read fashion for fans of BTC.

Wed, 12/09/2015 - 19:44 | 6901733 coinhead
coinhead's picture

Bitcoin is going to 9 figures, bread is also going to 9 figures....

Wed, 12/09/2015 - 23:24 | 6902644 CPL
CPL's picture

Let's play where's Waldo.  First off the inventor of BitCoin wasn't white.  Secondly he's been dead for a while.

Wed, 12/09/2015 - 19:02 | 6901571 Stackers
Stackers's picture

The mob and the tax man always get their money.

Wed, 12/09/2015 - 19:38 | 6901698 coinhead
coinhead's picture

Teh tax man is totally powerless against Bitcoin.  You would almost have to try to get caught.

Wed, 12/09/2015 - 19:39 | 6901701 exi1ed0ne
exi1ed0ne's picture

You say that like they are different things.

Wed, 12/09/2015 - 20:18 | 6901896 JimS
JimS's picture

Ah, you finally said something that makes sense. For awhile, they (TPTB) have been shooting people "on sight", unless you have not been reading "news", lately. They (TPTB) could just make you "disappear". That has happened as well. Just look up what happened to "dissidents" in the forced disappearance of people in Argentina from 1976 thru 1983. It could happen in the USA (if it's not already happening).

Wed, 12/09/2015 - 18:43 | 6901511 Theta_Burn
Theta_Burn's picture

And THATS the chinck in the impenetrable armor..

The gov will spend a million to make sure you pay 10K

Im curious, what's the tax consequence of stores selling goods?

Wed, 12/09/2015 - 19:08 | 6901595 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

When the SEC lawyers wake up and decide Bitcoin is a security...then black helicopters for sure:

https://www.youtube.com/watch?v=vLU4B8L-ROc

 

Wed, 12/09/2015 - 19:39 | 6901702 coinhead
coinhead's picture

Tehy don't have enough helicopters on Earth to do anything about it.  Enough guns to destroy an idea whose time has come.

Wed, 12/09/2015 - 18:47 | 6901526 Citxmech
Citxmech's picture

If the alleged inventor ob BitCoin can't keep his stash a secret from the govt. . . 

Wed, 12/09/2015 - 18:55 | 6901545 crazytechnician
crazytechnician's picture

He is not the inventor , looks like an elaborate HOAX.

Wed, 12/09/2015 - 19:33 | 6901670 Flagit
Flagit's picture

There are similarities between this witch-hunt and that for The Dread Pirate Roberts.

I believe they knew who to look for based on comments made from his account, in reference to an online marketplace pre-dating the launch of Silk Road.

Wed, 12/09/2015 - 19:22 | 6901638 Bangin7GramRocks
Bangin7GramRocks's picture

Prepare to be ButtCoined nerd! Every day in every way.

Wed, 12/09/2015 - 20:16 | 6901888 coinhead
coinhead's picture

Fuck you.  Buh Bitcoin!

https://localbitcoins.com

Wed, 12/09/2015 - 18:36 | 6901493 Totentänzerlied
Totentänzerlied's picture

Indeed, I too thought they'd be going with the 'multiple self-inflicted pneumatic nailgun head wounds suicide by a person never known to have owned or operated a nailgun' on this one.

Wed, 12/09/2015 - 18:42 | 6901510 nuubee
nuubee's picture

If he is the founder of bitcoin, he should have found himself a passport to some pacific island nation a long time ago, and quietly disappeared from western influence.

Wed, 12/09/2015 - 19:31 | 6901661 css1971
css1971's picture

Believed his own hype. Didn't he.

Typical crypto nerd: https://xkcd.com/538/

 

Wed, 12/09/2015 - 20:18 | 6901895 nuubee
nuubee's picture

At the very least, again supposing he is indeed Satoshi, he had no mental connection to the real world, he didn't realize how much TPTB would want to come after him.

Wed, 12/09/2015 - 19:58 | 6901786 Norm Alcybias
Norm Alcybias's picture

Passport from Pacific Island = Australia (Pacific and Island nation),

living down a sleepy street....?

what am I missing, what gave him up then ?

Efforts at asset assigment and tax dodging.

Wed, 12/09/2015 - 20:15 | 6901880 nuubee
nuubee's picture

Australia is not considered an island, it is considered a continent.

It is also effectively a U.S. vassal.

Wed, 12/09/2015 - 21:08 | 6902122 Norm Alcybias
Norm Alcybias's picture

beg to differ, not trying to be an a-hole,

Q:
Is Australia an island?

A:

Quick Answer

Australia matches the definition of an island, as it is surrounded by water on all sides. However, Australia is more frequently referred to as a continent rather than as an island; it is one of the largest land masses on Earth, so it fits the definition of a continent

vassel, one of many.

cheers.

Wed, 12/09/2015 - 21:51 | 6902296 nuubee
nuubee's picture

North America, South America and Africa are also surrounded by water on all sides. No one calls them islands.

Thu, 12/10/2015 - 13:52 | 6905178 BarkingCat
BarkingCat's picture

All those you have named are connected to other landmasses.
I think using Antarctica would have been a better example.

Australia was referred to as a continent when I was at school all those eons ago but I have no idea today. Some solar bodies that used to be called planets are not anymore.
Scientists can be funny sometimes.

Wed, 12/09/2015 - 18:48 | 6901522 Bill of Rights
Bill of Rights's picture

Code my friend code... Think.... They don't want his stinking money they want information.

Wed, 12/09/2015 - 19:20 | 6901624 sleigher
sleigher's picture

What code? Bitcoin is open source.

 

https://github.com/bitcoin/bitcoin

 

You mean his keys?

Wed, 12/09/2015 - 18:47 | 6901524 Bunga Bunga
Bunga Bunga's picture

Tax fraud.

Wed, 12/09/2015 - 19:28 | 6901653 css1971
css1971's picture

GIVE ME 40% OF YOUR FUCKIN MONEY! OR I FUCK YOU UP!

 

That's how they justify it. Legally,

Wed, 12/09/2015 - 20:03 | 6901812 JimS
JimS's picture

nuubee (dude)........ it's like the Godfather, bitcoin holders are not "wetting the beak" of the Godfather. Surely you must understand the ways of the Mafia, correct? They want their "cut" of the action, is that not easy enough to understand? The "Mafia" has never, ever needed "legal justification". You can not be that fucking dumb.

Wed, 12/09/2015 - 21:41 | 6902262 t0mmyBerg
t0mmyBerg's picture

Because government sucks balls

Wed, 12/09/2015 - 18:28 | 6901460 Luck Dragon
Luck Dragon's picture

I am a bit confused here, I thought bitcoin was "secure, secret, untraceable, anti-government, anti-bank, "safe" curerncy"... How does the government have any knowledge, say so or visibility of what he does or does not have with this secret currency?

Wed, 12/09/2015 - 18:31 | 6901468 Sudden Debt
Sudden Debt's picture

Every country has it's own internet listing rules.

All they need to do is trace all the bitcoin wallet sites.

Look for those who proceed to transactions.

Do that for a year.

And you've got almost all of them.

 

It's just to easy to catch a bitcoin looney

Wed, 12/09/2015 - 18:34 | 6901484 crazytechnician
crazytechnician's picture

Rubbish. Your wallet is a private key , ie a code you can memorise or write down.

Wed, 12/09/2015 - 18:53 | 6901534 Sudden Debt
Sudden Debt's picture

Yes, your key.

But what when all wallet sites are closed and those ATM vanish?

Do you know how long it takes a country to ban a site? A phonecall, a email and it's over.

They can shut it down whenever they want.

What then?

You're so dependend on the internet, which is the most controlled, spied on communication tool on this planet.

If I take my gold. Leave my phone home. Go into the forest. Dig a hole 1 meter deep.

They'd have a fucking harder time stealing my money then they will when they want to take yours.

 

What if Visa and Paypall block all transactions that are related to bitcoin and those very few ATM's close down?

You are so dependend on a system that still allows it. Eyes wide shut.

 

Wed, 12/09/2015 - 18:57 | 6901549 crazytechnician
crazytechnician's picture

You don't need a wallet site. FFS do some research.

Wed, 12/09/2015 - 18:59 | 6901555 Sudden Debt
Sudden Debt's picture

Grow a brain kid. 

If you hold those kudos, you'll be toast.

Wed, 12/09/2015 - 19:06 | 6901588 crazytechnician
crazytechnician's picture

You have it the wrong way around , holders of PM's have been getting toasted for 5 years ...

Wed, 12/09/2015 - 19:13 | 6901600 Sudden Debt
Sudden Debt's picture

Was I talking about PM's? :) 

Don't run away from the subject kid. 

 

And to answer your question:

US$1124.76 was the Bitcoin high in 2013 and crashed back to 200 dollars.

It's about 400 now....

What do you call that? A minor adjustment?

Wed, 12/09/2015 - 19:22 | 6901636 Sudden Debt
Sudden Debt's picture

AAAAaarrhh!! The pain!! A downvote!!! 

You got me there bro!.... that only happened to me 12 million times... :)

 

Wed, 12/09/2015 - 19:55 | 6901771 JimS
JimS's picture

Some may die, trying to hold their PM's, that is true. Some may die trying to take those very same PM's. It is known as Molon Labe. You, dumb fuck, will just die. I doubt seriously if you have the ability to protect your "bitcoins", but trust me on this.... if they wish to get your "key" , they will force that "key' out of you, or, you will die, in the process. In either case, your bitcoins will be lost in "space".

Wed, 12/09/2015 - 20:03 | 6901808 coinhead
coinhead's picture

Teh people doing teh forcing are about is unintelligent as you guys.  Good luck even knowing who has teh Bitcoins because unless you put a big neon flashing sign in front of your house saying "BITCOIN OWNER".......

Wed, 12/09/2015 - 22:52 | 6902504 MalteseFalcon
MalteseFalcon's picture

Every time you use bitcoin to make a transaction, you expose yourself. Buying a car with bitcoin?  Buying a house?

LOL. 

That is the big neon flashing sign in front of your house saying "BITCOIN OWNER".

 

Wed, 12/09/2015 - 19:00 | 6901560 Sudden Debt
Sudden Debt's picture

You do realize bitcoin was created to be a computergame currency right?

Or didn't you do your research?

Wed, 12/09/2015 - 19:04 | 6901578 crazytechnician
crazytechnician's picture

Yeah and the internet was created just for email ...

Wed, 12/09/2015 - 21:07 | 6902119 Bollixed
Bollixed's picture

You mean porn. That was the killer app.

Thu, 12/10/2015 - 15:43 | 6906040 BarkingCat
BarkingCat's picture

No you dumb fuck, the internet was created as a
way to enable information sharing amongst defense department computers.
Long before the web there were things like gopher
sites and if you wanted to send an email from site A to site B you had to know the path for it to go there.
Average Joe or Jane had no chance of sending an email even if they had such access.

Now go back to repairing those 8-track tape drives and leave technology to those who actually have a clue.

Thu, 12/10/2015 - 15:55 | 6906111 crazytechnician
crazytechnician's picture

current market price for 'computer game' currency bitcoin 418 dollars .... perhaps some people do have a clue ? My advice - get out and buy yourself 0.01 bitcoin before your totally broke.

Wed, 12/09/2015 - 19:29 | 6901655 Rektors
Rektors's picture

I can't believe how poorly informed folks are about Bitcoin....

I'm here to provide a layman answer to anyone with a reasonable question. 

Wed, 12/09/2015 - 19:35 | 6901680 Sudden Debt
Sudden Debt's picture

Was it your mommy or your daddy who dropped you as a baby?

 

Wed, 12/09/2015 - 19:36 | 6901683 coinhead
coinhead's picture

...and I am here to spam teh Shit out of anyone talking smack about Bitcoin.

Wed, 12/09/2015 - 19:40 | 6901710 Sudden Debt
Sudden Debt's picture

That would be me!!!

:)

Thu, 12/10/2015 - 15:52 | 6906100 BarkingCat
BarkingCat's picture

Me too.

Wed, 12/09/2015 - 20:56 | 6902074 MissCellany
MissCellany's picture

Admitting you have the problem is the first step toward recovering from the problem.

Wed, 12/09/2015 - 20:51 | 6902051 Counterbalance
Counterbalance's picture

I extend the same invitation. 

Wed, 12/09/2015 - 20:23 | 6901731 JimS
JimS's picture

Ah, yes, your "private key". You are a dumb fuck. You will give up "your key" once they start waterboarding your ass, or you will die trying to keep it "secret". Guaran-fucking-tee it. You think not, you are a fucking fool. God damn, you are soooo fucking dumb.

Thu, 12/10/2015 - 03:30 | 6903161 crazytechnician
crazytechnician's picture

Yawn , so Einstein , with those tactics anything can be taken , including the location of your little 'boating accident'.

Try crossing a border or a checkpoint with a memorised private key. I think it would be far easier than doing it with PM.

Thu, 12/10/2015 - 15:53 | 6906110 BarkingCat
BarkingCat's picture

Try turning you huge amount of Bitcoin back to government accepted fiat paper.

Wed, 12/09/2015 - 18:32 | 6901471 kerfuffled
kerfuffled's picture

it never was, but it can be under certain precautions.

he was outed by other people, and then they just have to track down an identity

Wed, 12/09/2015 - 18:57 | 6901548 Fuku Ben
Fuku Ben's picture

Its known as building street cred. to the government gangs that work with the street level gangs (ie. Corporations) to implement these schemes. Make a big public show about raiding some mysterious pseudonym boogeyman (ie. Al Quaeda, ISIS et al) that created Bitcoin (i.e terrorist network). Someone alleged to have created what the government really created (or paid this individual to create) to be able to replace cash and monitor everyone.

Once you raise the street cred. enough ban all cash that already had traceable magnetic strips in them forcing many to use a form of alleged currency that is far more efficient to monitor, track and control.

Voila. Sheep think their doing something untraceable and anonymous and have freedom. Government now in full control and laughing at them. Its all part of keeping the illusion of freedom and choice in place for the sheep while herding them towards the shearing pen.

Wed, 12/09/2015 - 19:21 | 6901633 Mentaliusanything
Mentaliusanything's picture

Because they filed as they are legally required) a quarterly BAS (business activity statement) for GST paid on Services and Goods.

This shows your cash flows in and out, what your margin is and who you dealt with. 

Government of Australia is your silent partner and collects taxes @10% on your business activity. They also collect Capital gains tax, income tax, stamp duties, exises and payroll tax. Yet this silent partner never works at the business nor do they stump up any capital.

Fucking good to be King hey

Wed, 12/09/2015 - 19:55 | 6901773 AGuy
AGuy's picture

"I am a bit confused here, I thought bitcoin was "secure, secret, untraceable, anti-government, anti-bank, "safe" curerncy"."

My guess is that they consider him "aiding & abetting" Criminal activity. They will like prosecute him to make an an example of him. As far as bitcoin, its likely to fall over the next few years. Too many people got burned (ie Mt Gox, or other Bitcoin Banking establishments).

Thu, 12/10/2015 - 06:45 | 6903317 Alvin Fernald
Alvin Fernald's picture

Yeah look how many people quit using cash after this major heist. doh.
http://www.nydailynews.com/new-york/nyc-crime/feds-charge-mobster-1978-l...

Wed, 12/09/2015 - 21:23 | 6902142 fiatliberty1776
fiatliberty1776's picture

Every transaction is made to a public ledger that is pseudanonymous (see here: https://blockchain.info/tx/d3c4f90bbc90a62e286005684685d2ca06e7b47a4714b... ) that is very easy to be completely transparent about and hard to be completely anononymous but there are ways.

Mycelium entropy paper wallet and Trezor hardware wallets are great tools.  I think it is more like PM's where it would take a lot of effort or impossible (brain wallet) to confiscate that would overwhelm the state if they tried to control it in any meaniful way and if they did conclude that it is you that controls the bitcoin its going to be difficult to prove that you do know or possess the private key to make a transaction.  Going after the supposed founder (I don't think its him or only him by the way) makes sense because it could be a big heist with little effort and could be used to discredit it before more people consider bitcoin's merits.

Wed, 12/09/2015 - 18:28 | 6901463 Sudden Debt
Sudden Debt's picture

It's about YI high and HA wide

Wed, 12/09/2015 - 18:33 | 6901479 AriusArmenian
AriusArmenian's picture

So they can steal as much as possible.

Wed, 12/09/2015 - 19:00 | 6901561 booboo
booboo's picture

Well we all know whats next, time for bitcoiners to withdraw all their bitcoins and uh, you know, put them in a place where, uh...nevermind. Maybe they can buh sum GLD with them.

Wed, 12/09/2015 - 21:29 | 6902202 fiatliberty1776
fiatliberty1776's picture

Already can buy PM's with btc at Amagi metals and Vultoro...I can't wait for the day when I take in gold/silver savings to a local dealer and exchange them for btc so I can do some online shopping and completely exit the traditional banking system.  Then get paid in btc and take that to the same PM dealer and buy back some gold/silver for savings.

Wed, 12/09/2015 - 18:47 | 6901523 Silver Shield
Silver Shield's picture

How long until the Australian tax boys start dumping a Satoshi load on the market?

Wait a minute wasn't all of this decentralized illusions supposed to stop the government?

And if the banks fear Bitcoin why is Blythe Masters at Digital Asset Holdings in Tel Aviv? And Citigroup and JP Morgan trying to make their own?

And what was all of that stuff at the back of the Bible about that mark of the beast?

Wed, 12/09/2015 - 19:12 | 6901608 Citxmech
Citxmech's picture

I wonder if another method to debase/discredit BC is to start renditioning public holders:  e.g. the govt. "discoveres" some link between BC and terrorists and the next thing you know, the Winklevoss twins get their assets seized and a one-way ticket to Guantanamo.

Thu, 12/10/2015 - 07:35 | 6903349 Arnold
Arnold's picture

Put Blythe on the same shipping list.

Wed, 12/09/2015 - 21:37 | 6902242 fiatliberty1776
fiatliberty1776's picture

They are experimenting with private "blockchains" that they can control for obvious reasons.  These private blockchains are pretty pointless and only create a fancy new database system while the Overstock CEO ( http://www.zerohedge.com/news/2015-10-24/overstock-holds-3-months-food-1... now first to market with an asset trading platform is creating a platform that uses bitcoin's open, trusless, public ledger to execute the exchange of assets which just got SEC approval to go ahead (https://bitcoinmagazine.com/articles/sec-approves-overstock-com-s-filing... )

Wed, 12/09/2015 - 18:53 | 6901541 ZH Snob
ZH Snob's picture

AKA fonestar

Wed, 12/09/2015 - 18:54 | 6901542 Fester
Fester's picture

Too bad his middle name isn't Wayne :)

Wed, 12/09/2015 - 19:23 | 6901641 Uncle Sugar
Uncle Sugar's picture

Call Geraldo in to open the safe. 

Wed, 12/09/2015 - 19:36 | 6901686 JimS
JimS's picture

It won't be hard to get him ( the Dude) to open the "bitcoin" safe. It's called waterboarding, and he won't last too long..... or he'll die. In either case the "bitcoin" wealth will be gone, forever.

Wed, 12/09/2015 - 18:21 | 6901435 Seasmoke
Seasmoke's picture

Ha ha. This is the greatest comedy ever written.

Wed, 12/09/2015 - 18:23 | 6901446 Bay of Pigs
Bay of Pigs's picture

PAGING THE FONESTAR BRIGADE!!!!

Wed, 12/09/2015 - 18:24 | 6901452 Seasmoke
Seasmoke's picture

Satoshi even rents. Smart guy.

Wed, 12/09/2015 - 18:26 | 6901457 Sudden Debt
Sudden Debt's picture

Well, he did scam thousands of idiots who think it's a good investment...

 

Wed, 12/09/2015 - 18:37 | 6901487 buzzsaw99
buzzsaw99's picture

that's what cracks me up. some jerkoff in australia has nine figures worth that he conjured out of thin air just like the fed. lmao.

Wed, 12/09/2015 - 18:33 | 6901480 Budnacho
Budnacho's picture

Gee whiz....wonder if there will be enough "evidence" to shut it down completely.....you know, for a "safer" alternative Crypto-Currency thrigh a trusted Banker....

Wed, 12/09/2015 - 18:35 | 6901481 Theta_Burn
Theta_Burn's picture

Thats some impenetrable block-chain-link fence around that Aussie's yard..

If this is really the legendary Satohsi, how many bits of code will one wager that he can keep his mouth shut?

Wed, 12/09/2015 - 18:37 | 6901496 Tinky
Tinky's picture

Turn over that paper wallet – now!

Wed, 12/09/2015 - 18:37 | 6901497 williambanzai7
williambanzai7's picture

BUST MY BITCOINS

Wed, 12/09/2015 - 18:41 | 6901505 Silver Shield
Silver Shield's picture

When a few get something for nothing the rest will inevitably get nothing for something.

Stop falling for digital illusions of wealth.

Invest in real skills, real friends and real wealth.

Wed, 12/09/2015 - 19:00 | 6901567 crazytechnician
crazytechnician's picture

Hey Chris , that vid. you did about bitcoin being a ponzi and going to zero years ago was well worth the watch,

Wed, 12/09/2015 - 19:06 | 6901587 HowardBeale
HowardBeale's picture

The guy who created BitCon from mere electrons happens to have "nine figures"--at least $100M worth. Yeah, this is no ponzi; perfectly legitimate.

 

Wed, 12/09/2015 - 21:49 | 6902287 fiatliberty1776
fiatliberty1776's picture

thats the same as saying the internet didn't take any skill to create or is not worth anything when it enabled billions of people to freely express themselves and bitcoin (or some other digital currency) will enable billions of people to have true financial freedom to send money where and when they want and to start a business with only needing a $20 smart phone and an internet connection.  The internet now has a financial protocol that is going to dramatically change the opportunites for billions of people to control their lives and rely less on government.  Openbazzar is the first online decentralized, uncensorable marketplace that is hopefully going to launch in a few weeks (https://openbazaar.org/)

Wed, 12/09/2015 - 18:37 | 6901498 Kamehameha
Kamehameha's picture

Patsy

Wed, 12/09/2015 - 18:40 | 6901501 nmewn
nmewn's picture

400 million...lol...suckers.

Wed, 12/09/2015 - 19:02 | 6901570 crazytechnician
crazytechnician's picture

Price is still going up .. suckers ..

Wed, 12/09/2015 - 19:45 | 6901735 nmewn
nmewn's picture

The price...in what? ;-)

Wed, 12/09/2015 - 21:26 | 6902181 doctor10
doctor10's picture

yaya..If I had a business competitor ..or a jealous spouse or sumpin'-I'd let the "authorities" know he/she was Satoshi-and sit down with a box of popcorn.

Wed, 12/09/2015 - 23:23 | 6902640 JuliaS
JuliaS's picture

In prison sentence years.

Wed, 12/09/2015 - 18:48 | 6901527 Raging Debate
Raging Debate's picture

He made a mistake. How the world works is you create the technology and then sell to a JPM type entity. That is not how we want the world to work. Once adopted you can then guide the world a 1/2 a degree in the direction you feel it should go. Now JPM just doing there own version anyways and this Fonestar gets the steel pagoda. Inclusive systems are the only ones where you probabky wont get stomped by competition. It isnt a fair world, we can only do our best to add value incrementally. 

Wed, 12/09/2015 - 19:21 | 6901632 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Or subtract depending on the Worldview, eh.

Wed, 12/09/2015 - 18:59 | 6901557 Grandad Grumps
Grandad Grumps's picture

I thought assets are not taxed until they are sold... and then the tax is on the capital gains, short-term or long. Is that not the way it is in Oz?

What exactly is the criminal charge that would require 10 loyal public servants?

Wed, 12/09/2015 - 19:03 | 6901573 Philo Beddoe
Philo Beddoe's picture

Future crime. 

Wed, 12/09/2015 - 19:12 | 6901607 Dave Thomas
Dave Thomas's picture

They're gonna make him cash some in, you know for the greater good. Since bitcoin is used by terrorists and such.

 

Wed, 12/09/2015 - 19:09 | 6901569 css1971
css1971's picture

They've known it was him for years.

 

Oh and Bitcoin IS centralised. Only those who don't believe in causality think it's decentralised.

Wed, 12/09/2015 - 19:05 | 6901581 PoasterToaster
PoasterToaster's picture

Taxation is slavery.

Wed, 12/09/2015 - 19:15 | 6901615 TuPhat
TuPhat's picture

I don't know Aussie law but, failure to register a business, failure to file tax records for the business, conducting a business without a license.  Who knows.

Wed, 12/09/2015 - 19:18 | 6901625 g'kar
g'kar's picture

the ponzie masters don't like competition

Wed, 12/09/2015 - 19:22 | 6901637 Bankster Kibble
Bankster Kibble's picture

This Australian was thrown to the wolves while the real founder continues to live quietly in Basel.  He's the guy who looks like a homeless person but gives great tips at the coffee house.

Wed, 12/09/2015 - 19:22 | 6901639 PrimalScream
PrimalScream's picture

Yep, orchestrated.  Internationally.

This guy is a bigger threat to the System than Edward Snowden.

Wed, 12/09/2015 - 19:27 | 6901650 83_vf_1100_c
83_vf_1100_c's picture

  Wher's coinhead? How can they catch Satoshi-san, he is gawd? How can they know how many bitcoins he has, it is untraceable? I am so confused. Maybe the Chines hackers dropped a dime on his ass to the Ozzie cops.

Wed, 12/09/2015 - 19:29 | 6901659 SILVERGEDDON
SILVERGEDDON's picture

Aussies just tied Satoshi's bitcoin kangaroo down, lubed it up with Marmite, and took it for a long ride down a short road.

How could such a smart guy set up shop in a former Crown penal colony ?

Them Aussie legal bureaucrats learned their shit from the best crooks in the business - for a couple of centuries worth of apprenticeship.

Just was asking to be a muppet, and get fleeced. .

Wed, 12/09/2015 - 21:00 | 6902094 Counterbalance
Counterbalance's picture

I think he said he's working on publishing more papers and has a top 15 supercomputer powered by cheap Icelandic geothermal electricity. He called it 'tulip' and boasted having more computing power than the Bluffdale NSA site. Interesting. Maybe he's setting up a computer to 51% attack all upstart competing currencies? Makes sense.

Wed, 12/09/2015 - 19:42 | 6901713 discopimp
discopimp's picture

Here is the Las Vegas presentation, http://bitcoininvestor.com/index.php/videos/   

All-Star Panel: Ed Moy, Joseph VaughnPerling, Trace Mayer, Nick Szabo, Dr. Craig Wright  which by the way was an excellent "mindful" event

Wed, 12/09/2015 - 19:50 | 6901751 erk
erk's picture

Gee that's disgusting, the guys invents something mavelous like Bitcoin, only to be raided by the police. I thought Australian Police had better morals than that, something you would expect homeland security to do.

 

 

Wed, 12/09/2015 - 22:26 | 6902408 tarabel
tarabel's picture

 

 

Police? Morality?

No, wait, I've got a great idea. The MORALITY POLICE!

What do you mean: it's already been done?

Wed, 12/09/2015 - 19:53 | 6901757 tarabel
tarabel's picture

 

 

Well, when I posted about this last night after reading it on secret alternative financial media site MSN, the first question I had was how he "earned" 400,000,000 worth of bitcoins. I'm always suspicious about alleged do-gooders who do good by themselves first.

Wed, 12/09/2015 - 20:21 | 6901910 robertocarlos
robertocarlos's picture

He bought them for a penny and now they are worth many $100s each.

Wed, 12/09/2015 - 21:04 | 6902102 22winmag
22winmag's picture

NSA Coin... the government busting itself?

Thu, 12/10/2015 - 00:02 | 6902811 Sizzurp
Sizzurp's picture

Why would someone worth that kind of coin be hanging out in a Sydney suburb?  Why not set up residence on a large yatch moored in Monaco, or perhaps a nice quiet island in Polynesia?  You would think a cryptocurrency genius would be a little more creative.  What's the point of wealth if you can't enjoy it?

Thu, 12/10/2015 - 00:19 | 6902872 onmail1
onmail1's picture

These euroPeons & Americans only know how to create free currency
when one fails create another
Then buy(loot) other's resources
for free
Free oil, free minerals , free goods, free services
free christmas gifts
let the asian boy slug out his sweat

Thu, 12/10/2015 - 07:42 | 6903355 Arnold
Arnold's picture

Thanks, the article satisfies my prurient interest for another month.

Thu, 12/10/2015 - 17:16 | 6906061 herkomilchen
herkomilchen's picture

Latest way to ruin your political enemy.  Report him as being Satoshi Nakamoto.

Do NOT follow this link or you will be banned from the site!