Bitcoiners Slam Calls For Crypto Crackdown After Latest Russia Probe Indictments

After Deputy Attorney General Rod Rosenstein released an indictment of 12 Russian intelligence officers yesterday, it didn't take long for Democratic members of Congress to point fingers at bitcoin for supposedly helping enable the "nefarious actors" to secretly pay for servers and other services in furtherance of their scheme to fool the American public.

And as the bitcoin backlash intensified, Congressional Black Caucus Chairman Emanuel Cleaver tweeted that he's been "warning of the potential dangers of bitcoin" and that "the crypto industry needs to step their game up."

Cleaver was referring to sections from the indictment that described how the hackers used cryptocurrency to pay for fake accounts and servers in furtherance of their scheme.

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A surprising amount of space in the legal document was dedicated to recounting how the subjects of the indictment made their bitcoin payments and even mined bitcoin to help finance the operation.

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But Cleaver's claims quickly elicited a flood of tweets from people in the community who were quick to point out that the trail of transactions embedded in the blockchain actually helped investigators pinpoint the people responsible. As one user put it, "Bitcoin is a bad choice for criminals, whether you're a Russian hacker or domestic drug dealer."

It may be impossible for governments to interfere with transactions conducted in bitcoin - meaning they can't stop an illegal activity during the act - but bitcoin "made it easy to track" the suspects after-the-fact.

One twitter user pointed out the irony in Rep. Cleaver's complaints...

and suggested another frame for the narrative.

Of course, some bitcoin critics reveled in the fact that the indictment appeared to mark a new low for the cryptocurrency.

But, in summary:

In terms of tracking the indicted parties, it doesn't appear that bitcoin was any more difficult to trace than simple wire transfers would've been. But that probably won't stop lawmakers like Cleaver calling for it to be banned or for regulators to crack down more heavily than they already have.

Comments

chippers Cryptopithicus Homme Sun, 07/15/2018 - 03:28 Permalink

Like I told you before all it take one muzzie raghead to buy his suicide vest in bitcoin or one imagined russian hacker to buy his latest windows xt with bitcoin ,  or maybe one anti-government radical to buy his child porn with bit coin and the guberment is so going shutdown the bit scam so fast it will be a wonder to behold

In reply to by Cryptopithicus Homme

rtb61 Billy the Poet Sat, 07/14/2018 - 23:54 Permalink

Well, no. What is going on, the banksters want to do an energy backed series of crypto currency, which they will of course issue for maximum profit and unbacked crypto will reduce profit margins, holders of unbacked crypto are fucked.

They attack nearly every week now, threat to democracy, espionage activities, criminal money laundering and you know it coming, funding terrorism. Here's a countdown for you, how many days until they, wow, uncover a terrorist group with a hoard of crypto currency, especially bitcoin (pretty cunning you see, they supply the crypto and then take it back, zero cost, apart from unbacked crypto pretty much dead after that).

Eventually getting caught with unbacked crypto will be proof of money laundering and engaging in criminal activity. When ever corrupt politicians spout off about anything nowadays it is only because a corporate funded lobbyist told them to.

Saying the Democrats said, what ever the fuck they said is dumb, say as Republicans, empty talking heads, smooth talking liars, shameless liars, they are just speaking the words their lobbyists told them to. To who told the Democrats to attack unbacked crypto.

Not kidding, get out and get out fast, holding it will eventually become a crime, it will be claimed as being proof of criminal activity because the banksters can't stand competition and they own the government.

In reply to by Billy the Poet

marysimmons besnook Sat, 07/14/2018 - 21:43 Permalink

Instead of going on a wild goose chase looking for Russian "hackers", Mueller should have been investigating who murdered Seth Rich and why, but real discovery or justice was never the goal.

Bitcoin doesn't guarantee absolute privacy - the protocol just guarantees the transfer of BTC from one wallet address to another available for anyone to see on a public ledger.  If someone really wants anonymity, multiple untraceable privacy tokens are available, eg Monero, ZCash, Zencash, DASH, PIVX, etc

In reply to by besnook

MoreFreedom marysimmons Sat, 07/14/2018 - 23:44 Permalink

Why would Russian military officers need bitcoins?  The whole indictment is a joke intended to buttress claims the Russians hacked the DNC and Podesta.  But I'd bet they did hack Hillary's server.  There's blackmail material on Clinton's server, but nothing of much use to Russians in the Podesta/DNC servers.  There isn't any evidence that Putin wanted Trump elected anyway - it was all a Democrat narrative to distract from the fact Clinton's server was hacked.  But in the likely event Putin was blackmailing Obama and Clinton, I can see why they blamed the Russians for the emails Wikileaks released.  Assuming Putin had Hillary's emails, he'd want her elected, and if he didn't have them, he'd still want Clinton considering all the appeasement and flexibility she showed, e.g. in making sure the US uranium was sold to Russians.

In reply to by marysimmons

Utopia Planitia Sat, 07/14/2018 - 21:19 Permalink

A tough lesson when bitKonners discover that the people they hooked their wagon to are going to turn on them in an instant with made-up hyperbole.

Better luck next time BitKiddies!  Maybe you will think before you act.

nmewn Sat, 07/14/2018 - 21:26 Permalink

LMAO! Now what leftists?

The Deep State which you depended on for getting rid of Trump is now after you? Whaaa???!!! Man, thats really gotta suck, relying on so many technological and "regulatory variables" in just one scheme, instead of, ya know, what you can hold in your hand (provided you didn't lose it in a boating accident or have a left hand...lol).

I smell a "paradigm" shift ;-)

fbazzrea Sat, 07/14/2018 - 21:57 Permalink

what a joke... the USD is the most popular form of illegal money laundering on the planet. i say crackdown on the Fed's dark pools of Franklins floating around the world.

AUDIT THE FED--THEN END IT

WorkingClassMan Sat, 07/14/2018 - 21:59 Permalink

Demonrats--in addition to being antiWhite--are the most corrupt wing of the one-party system we have here in the US.  They make the feckless republican looks positively SAINTLY in comparison.

silverer Sat, 07/14/2018 - 22:20 Permalink

I still don't have a clue what they are talking about with the Russians. If you voted for Hillary, you voted for a criminal. It's all part of the public record. Fines, broken laws, court records. It's all there. It only tells me liberals don't like laws. They want to steal, lie, deceive, murder. That's what they do, and that's what they want. Hillary would have given them all the criminality and violence they wanted. Why would anyone, including the Russians, want her as president of the US? But I never got an email, phone call, TV ad, newspaper story from the Russians. No, Boris did not tell me not to vote for Hillary. Neither did Ivan.

snblitz silverer Sun, 07/15/2018 - 00:35 Permalink

Some of us are on a list.  We get a down vote almost immediately for every comment posted.  From looking at the timing it looks like they have a staff of humans responsible for the vote but they do not have 24x7 coverage.

The goal seems to be to get the comment to be 0 positive, 1 or 2 negative as quickly as possible.

I assume this means they think others will then "skip over" the comment.

The content of the comment does not seem to matter.

In reply to by silverer

messystateofaffairs Sat, 07/14/2018 - 22:21 Permalink

The bottom line is these whores are going to try to squash private money at the behest of their bankster masters. Any pretext will do. Bitcoin expects that so let them get on with it to test the coins resilience, ultimately btc will become the underground economy money once cash is eliminated and bankster  currencies become fully and easily traced.

Sabibaby Sat, 07/14/2018 - 22:38 Permalink

People who own crypto-currencies aren't your enemy but now the FBI wants to turn the MSM on us and it looks like Zerohedge has a small cheering section too. 

silverer dubsea Sat, 07/14/2018 - 23:00 Permalink

This is so very funny. Suddenly the Russians need Bitcoin to buy computers secretly. Just go to the recycle center and pick up as many Windows machines as you need, because most of them still work and Americans are too damned stupid to get the viruses and adware out of them. How many times have you heard "I need a new computer, mine has really slowed down?" This whole investigation is based on hoping people are ignorant and stupid enough to believe there's something important here. There isn't.

In reply to by dubsea