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Hackers creating an untraceable and comprehensive financial system using Bitcoin (qz.com)
7 points by donohoe 1422 days ago | hide | past | web | 4 comments | favorite



"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.


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.


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


TL;DR money laundering by design.




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