

Hackers creating an untraceable and comprehensive financial system using Bitcoin - donohoe
http://qz.com/75457/using-bitcoin-hackers-are-trying-to-create-an-untraceable-financial-system/

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joshguthrie
"Untraceable"? Are we talking about this same financial system where
everything happens in clear view of everyone?

I've been thinking about it: "Cool, I'll start a script on all of the school's
computer and have them mine for me in a pool". Ain't that awfully easy? "30
under 30", here I come!

Oh well, no.

\- The school sysadmin can find which pool my slaves worked for and ask him
who he paid the relevant shares to.

\- Then he can just follow the money flow, one exchange after the other. Don't
forget to track multiples wallets too.

\- Oh nice, the money's coming out to the real world through Mt.Gox, too bad
they adhere to the law and will disclose my identity to the school sysadmin.

With money laundering, I could just take a case of cash, go in the street,
quick exchange at a shady corner and my money is laundered, yay. With Bitcoin,
the money trail is as easy to follow as the white rabbit.

~~~
bugle
what if one of those transactions was for cash? no way of knowing if that
final withdrawal from gox was the person who used those school computers.

alternatively, what about exchanging between multiple cryptocurrencies? more
and more pop up every day. there are unregulated exchanges that let you do
that and the only bitcoin transaction would be the deposit into the exchange.
the withdrawal could be in any random form (including wow gold or second life
linden dollars). the possibilities are only limited to the person's
imagination.

~~~
joshguthrie
There's still a link. "Yes, I got these BTC from JoshLeaves for n$, now follow
the trail with him".

Of course, it's all about the weakest link

------
cheez
TL;DR money laundering by design.

