Virtual Bank Founder Arrested Over $5M Bitcoin Ponzi
Virtual Bank Founder Arrested Over $5M Bitcoin Ponzi
Bitcoin Savings & Trust Comes Up $40 Million Short On
Bitcoin Wallet Created For Bitcoin Beginners | PYMNTS.com
Bitcoin Value Hits $133 for the first time since May 26th
SEC Files Charges Against Bitcoin Ponzi Mastermind Trendon
Breaking Theymos - all you have to do is to follow the money
I know, you guys are tired of hearing about theymos, but the only way to get him removed from power is to prove that he broke some rules and have proof to back it up. Some of you have some real time on your hands. You should use it more wisely. There is something called the blockchain, it's a global public ledger, so where theymos thought he was being slick, he really wasn't, and all his misappropriation of funds over the years is going to catch up with him. All you need to do is spend a little time following the money bitcoins and then connecting the dots. Then show the proof to reddit admins or heck, just show it to the police, he is in the states, and voila, no more theymos. Let's take an example and walk through it.
the internet doesn't lie https://web.archive.org/web/20130312110028/http://www.reddit.com/Bitcoin/ using the wayback machine, we can see that theymos setup an "ad campaign" collecting user funds on reddit saying "Bitcoins sent here will eventually be used for a Reddit advertising campaign with the goal of promoting Bitcoin and /Bitcoin: 16KaCJB7fVuT6hvA7wzgzVjAnHz28bNvvh" is this even allowed?, probably, let's not nitpick and continue on....
theres lots of little tx's here and there but alas, what is this, we see on 2011-10-24 he sent himself (bitcointalk forums) money for $12.88, three months after the address was setup.
before we move on, remember, this is for "ads only" which is for reddit ads or bitcointalk ads (but one could have presumed the ads on reddit were for reddit ads only but its unclear from the wayback machine if it was for both or just reddit)
now knowing he is sending money to himself and comingling funds (a big no-no), we can look at what he is doing with the bitcointalk address.
we can see that the transactions from blockchain.info and walletexplorer match, except walletexplorer is cool cause it does this awesome labeling technique overtime. we can see on the left is the received / and on the right is the sent columns
from this address 17RTTUAiiPqUTKtEggJPec8RxLMi2n9EZ9 using walletexplorer we can see that funds were sent all over the place - is all this for reddit advertising you are probably asking yourself??? let's continue digging.....
theymos sent money to bitstamp (they don't do reddit ads, coinbase does though!), sent money to bitpay, mtgox, localbitcoins, btce, oh whats this, he even sent money to Silk Road!!!
theymos using the bitcointalk donation funds which were comingled with the reddit funds, sent 7.312 bitcoins to SR on 2013-07-21!! what was he doing with all that??
reddit ads campaign address 16KaCJB7fVuT6hvA7wzgzVjAnHz28bNvvh final balance: ZERO
bitcointalk address 17RTTUAiiPqUTKtEggJPec8RxLMi2n9EZ9 final balance: $3.38
WHERE DID ALL THE MONEY GO?????
I'm sure if you guys keep on digging you will keep on finding more, but those tidbits might be enough to send him away for what is called embezzlement! look it up, or at the very least, taking redditors money and misusing it for his own personal funds!!!
How trustworthy are the authors of Electrum and MultiBit ? Why are their signing keys not verified?
Hello, I was a bit alarmed by these two posts some weeks ago: http://www.reddit.com/Bitcoin/comments/210fgj/there_is_an_pgp_imposter_of_bitcoin_dev_gavin/ http://www.reddit.com/Bitcoin/comments/1tin7f/warning_a_fake_electrum_website_with_malware_is/ In the first case, basically somebody registered a PGP key which at first glance looked like the signing key from Gavin Andresen. Such a key could be used to sign malware which appears as the true bitcoin client. This would only be detected if people check carefully. If people do NOT check it - maybe rushing in a situation where the network needs a quick fix - the consequences could be truly disastrous. In the second case, the Electrum website was actually faked to distribute malware which was camouflaged as the Electrum client. If people install such a client, it could send their bitcoins anywhere - this kind of attack can really cause a lot of grief, too. Note that in some simple setups, it might be possible to recognize the faked web site by its address, but in other cases, this will not be possible - think of insidious attacks on home routers or exploits of the recent Apple "goto" bug, which essentially disables SSL protection. In these cases, and whenever youinstall bitcoin software, it is always important to check for digital signatures of the maintainers, which can warrant the authenticity of the code. And, doing this properly includes verification of their keys. To make it short, I was newly installing Electrum and I decided to do it right and to look after the digital signatures and whether the signatures properly certified in a web of trust. Now, trust paths can be looked up by databases like these: http://pgp.cs.uu.nl/ It works so that in the "from" field, you enter YOUR key ID (which needs to be connected to the web of trust graph). In the "to" field, you enter the key ID of the signing key for the software. Now, you should be able to find at least one trust path from you to the signing key for the software. For example, if Mark Shuttleworth wants to verify the key of Gavin Andresen, he enters his key ID: D54F0847 into the "from" field, and Gavin's key - 1FC730C1 - into the "to" field. This will look as here: http://pgp.cs.uu.nl/mk_path.cgi?FROM=D54F0847&TO=1FC730C1&PATHS=trust+paths The trouble is, if Mark looks up the key for ThomasV, this looks so: http://pgp.cs.uu.nl/mk_path.cgi?FROM=D54F0847&TO=7F9470E6&PATHS=trust+paths that is currently, no trust paths to ThomasV's key are found. The same is true for Jim Burton, maintainer of Multibit. In other words, ThomasV's key cannot be verified, if somebody does not has other means. Well, somebody could look into the bitcoin forum - but first, the forum can be and has been hacked. And second, a forum identity does not mean much. Pirateat40 had an account, too, as well as the owner of bitcoinica. I do not suspect the developers of working in an evil plot, but honestly, I'd really like to know a bit more. Now, I have a few questions:
Who knows ThomasV ? Can a few prominent GPG users from the Bitcoin community who know him kindly sign his key and connect him to the larger web-of-trust ? Otherwise, it would be much more difficult to thwart attacks like against Gavin.
What do we know about Electrum's (and MultiBit's) developers? What is actually their expertise? Doing crypto well is damn hard. Why should we assume that the have the technical astuteness to move many many coins around safely?
Bitcoin-qt has been audited many many times by knowledgeable people. Has the Electrum source code been audited as well? To which degree? Has it been audited at all?
Thanks! Edit: A few developers have posted here... can other people confirm what they say? Can it be proven? Anyone was at that conference? Edit: As an important clarification: The fact that a key can be found on a keyserver, is signed by some entity, or is contained in the "strong set" of the PGP web of trust or in any web of trust does not necessarily imply that the key is linked to an authentic identity, end even less that the owner is a good guy. It only provides a mean to check this identity and to support the assumption that the identity is correct, independent from hacking attempts. And as a reply to some badly downvoted comment: Yes, knowing or probably knowing the identity of the auhtor of some code is by no means a substitute for skilled people carefully checking the code and any change in it.
Regulations or positions of some countries about cryptoworld Because governments can sometimes be a bit touchy about attempts to create alternatives to the legal tender they enjoy a monopoly on printing, a wise investor might wonder about the legal status of cryptocurrencies. Indeed, the disruptive potential of these technologies has made governments around the world nervous, as they have struggled to devise appropriate regulations for the cryptocurrency realm without stifling innovation. Most potential investors have nothing to worry about from a legal standpoint, but it pays to do one’s homework. Regulations or positions of some countries about cryptoworld Some countries have banned or ruled unconstitutional the use of cryptocurrencies within their borders, while others have embraced them or even announced plans to issue their own. Of course, due to the inherently decentralized nature of cryptocurrencies, enforcement has proven difficult. Taxes levied on profits made trading cryptocurrencies vary based on their legal classification. Check the laws in your country, and make sure you abide by them when investing. Questions of legality in major markets have caused temporary dips in cryptocurrency prices over the years, but they have always recovered. Keep reading for a brief history of legal rulings and government announcements related to bitcoin that have helped shape the current ecosystem. February 2012 Payments services firms Paxum and Tradehill temporarily cease bitcoin exchange activities due to legal concerns raised by Canadian regulators. 28 March 2013 Cypriot investors drive up bitcoin prices seeking a refuge for savings when a government bailout program threatens to tap bank deposits. 14 May 2013 The United States Department of Homeland Security seizes almost $3 million from a subsidiary of the Mt. Gox exchange, claiming that the business is illegally engaged in money transmission without a license. 30 August 2013 Tradehill stops exchanging bitcoin, again due to regulatory uncertainty, indicating a growing need for government clarification on the legal status of cryptocurrency. October 2013 The U.S. Federal Bureau of Investigation arrests operator of Silk Road dark web marketplace Ross Ulbricht, alias “Dread Pirate Roberts,” charges him with computer hacking, money laundering, drug trafficking and attempted murder, shuts down the site and seizes over 170,000 bitcoins. In the wake of the shutdown, numerous other illicit marketplaces emerge, but are prone to exit scams in which operators abscond with bitcoins held in escrow. 18 November 2013 U.S. Senate holds hearing titled “Beyond Silk Road: Potential Risks, Threats, and Promises of Virtual Currencies.” Members express reservations about the potential illicit applications of cryptocurrencies so vividly illustrated by Silk Road, frustration at the difficulty of regulating something so difficult to understand, but ultimately hope that government will be able to create a system in which decent people have a “chance to try and play by the rules.” 22 November 2013 China’s central bank issues an equivocal statement on bitcoin that nonetheless greenlights Chinese participation in cryptocurrency exchange and investment, prompting huge price gains over subsequent weeks. 05 December 2013 Backpedaling somewhat in response to the widespread use of bitcoin to circumvent limits on capital outflows, China bans banks and other financial institutions from dealing with or offering services relating to bitcoin, ruling that it is not a currency. 25 March 2014 The U.S. Internal Revenue Service issues its first guidelines for bitcoin, ruling that it is to be taxed as property, not treated as currency. 10 April 2014 Under government pressure, Chinese banks begin to shut down accounts belonging to bitcoin exchanges. Prices drop 10%, but many exchanges exploit loopholes and offshore parts of their businesses to continue operating. July 2014 The state of New York announces plans to develop licensing requirements for businesses dealing in bitcoin or related services, which proves extremely unpopular with cryptocurrency advocates. 06 November 2014 Trendon Shavers, alias “pirateat40,” arrested for defrauding bitcoin investors in Ponzi scheme in 2012. 19 December 2014 Bitcoin entrepreneur and proponent Charlie Shrem sentenced to two years in prison for illegal money transmission charges related to the Silk Road marketplace. 25 January 2015 Coinbase navigates regulatory frameworks to win approval to operate a fully-fledged bitcoin exchange in 25 U.S. states and sets sights on further expansion. 25 March 2015 Hong Kong officials warn against potential fraud on exchanges, but indicate they will take a light hand regulating cryptocurrencies, classifying them not as legal tender but as “virtual commodities.” 29 May 2015 Ross Ulbricht receives sentence: life in prison without parole. Judge Katherine Forrest explicitly seeks to make an example of him and thereby discourage others from using cryptocurrency and the relative anonymity of the Internet to flout the law. 01 August 2015 Mark Karpeles, former Mt. Gox CEO, arrested in Japan and charged with falsification of records relating to the solvency of the exchange during its collapse. 10 August 2015 Deadline hits for compliance with New York regulators’ “BitLicense” rules, leading many exchanges to stop serving customers in the State. 22 October 2015 Crypto advocates hail a European court ruling that VAT does not apply to bitcoin and other cryptocurrency transactions, thereby classifying them as currency, not property. 10 November 2016 The state of North Carolina creates legislation to address bitcoin and money transmission, which regards businesses dealing in virtual currencies as subject to the same set of rules and licensing requirements that govern transmission 10 March 2017 The U.S. Securities and Exchange Commission denies Cameron and Tyler Winklevoss authorization to create a bitcoin-based ETF, citing inadequate regulation of cryptocurrency exchanges. 28 March 2017 The SEC denies the Winklevoss brothers’ second request for authorization of a bitcoin ETF, again citing concerns about the lack of regulation and potential for fraud on the exchanges. 01 April 2017 Japan recognizes bitcoin and other cryptocurrencies as legal tender and lays the groundwork for supportive regulations intended to permit legitimate investment while discouraging money laundering and terrorist financing. 04 September 2017 China prohibits fundraising via initial coin offerings, which it considers illegal. 07 September 2017 The European Central Bank rules out the possibility of Estonia launching its own national cryptocurrency, reaffirms the privileged status of the Euro as legal tender, and cites concerns that national cryptocurrencies would undermine financial regulations. 06 December 2017 Softening its initial stance, Russian regulators indicate that new rules may allow the purchase of cryptocurrencies, but forbid or heavily restrict mining activities. 07 December 2017 Regulators in South Korea ban trading in bitcoin futures as well as initial coin offerings(ICO), but will permit cryptocurrency exchanges to continue operations.
If Bitcoin is really going to become the new currency of the world...
If Bitcoin really became the new currency of the world, it would need to accommodate the lowest common denominator of people. As it stands now, most people who are really into bitcoin are probably considered at least moderately intelligent. I'm going to use the word 'idiot' in this post from here on out, just to make shit easier to follow. Idiots need something and/or someone to cover their asses. Just like children need their parents to cover their asses. If the neighbor kid steals from them, they cry to Mommy or Daddy about it. Then the parents go ahead and handle it. The same is needed for bitcoin. A lot of this wallet/address/private-key/public-key/blockchain talk is definitely complicated to idiots. If you really think about it, an idiot could lose their entire financial worth because of their non-understanding of bitcoin and the securities that are needed to go with it. That simply isn't fair when their livelihood is at stake in our current society, regardless of what their level of intelligence is. Because of that alone, bitcoin will never surpass fiat as it currently stands. At some point there will need to be an entity that arises, that is similar to a bank(yes I know that analogy alone will get me downvoted). But everyone reading this needs to think about their understanding of bitcoin security, versus that of an idiot's understanding. Those idiots need a place to put their coins if this ever becomes mainstream. They need a level of cover, just like a child needs his/her parent's cover. The snide comment that if you're too stupid to understand it, you deserve to lose your coins, simply will not fly. It would be great if it did, but then again it would be great if people with low IQs couldn't reproduce, right? You have to understand the fact that modern society revolves around accommodation for all people starting at the lowest common denominator. Bitcoin cannot ignore that if it wants to be more than a niche. This post is probably way before it's time. Not because I'm the first to think about it. But because it's way before the time something like this is needed, before the idiots need a way to store their bitcoins, before the banks and fiat start crumbling(lots of ifs there). At that point they would need to be accommodated. As it stands now, they cannot be. This issue needs to be solved before bitcoin can even attempt to compete with fiat on a noticeable scale, let alone surpass it. Who can or will do that? We've already seen what happened with pirateat40 for example. So how can this be accomplished with full trust and blame? Can it be accomplished with full trust and blame that doesn't involve the government? That is a big question that the idiots will need answered, and those idiots are necessary to full adoption, whether you like it or not. So what will it be? A massive education for the idiots so they can handle their own coins, and simply suck it up if something bad happens? Or will there be some entity that provides them the security they need, so that they can continue spending by simply swiping a plastic card(funded with bitcoin instead of their fiat)? TL;DR: Idiots need fallbacks and security, that currently is not offered to them with bitcoin. Sucks to be them, sure, but there are so many of them that such a response won't fly in the big scheme of things. They need to be accommodated or taught. Who or what will do it, and how? edit: grammar
I saw this posted in the SR forum and figured I would repost in case others have difficulty accessing the forums. Hi all, It has come to our attention that some users on Silk Road believe the following; 1. That I am a scammer and was involved in a Ponzi scam on Silk Road. 2. The moderators at Atlantis market are deleting user comments. 3. Our forums term of use policy is aimed to arrest people and record information. 4. That we are DDoS'ing Silk Road. 5. Our PGP system is crackable. I'd like to take the time to address each point and if you have any questions, please don't hesitate to reply to this thread. The staff members at Atlantis and I are happy to address your questions. 1) This belief has come into existence as 'Vladimir' was a scammer on Silk Road and thus people thought I was the same person as him. Unfortunately without knowing Vladimir's past history, this is my name and the one I have chosen to use. Hypothetically if I was Vladimir, why would I use a scammers alias at a market place which deals directly with user funds? It wouldn't help build trust in our market place and doesn't make any sense at all. Its the equivalent of pirateat40 creating a new Bitcoin Savings and Trust scheme and asking people to re-invest in it. We're proud to say that in our 7 weeks of operation, we have suffered no down time, no users have lost funds and security concerns have been addressed promptly (like increasing PGP key support up to 16Kbits). 2) We have deleted posts only related to spam, posts involving unfounded claims or accusations (FUD) and have deleted no posts in which people have given us criticism, bug reports or requests about improving security. You can check the relevant forum sections to find examples of this. We actively encourage this feedback as it helps us create a better market place. We are here to help users and are happy to reply to any security concerns or criticism you have. We have also created a sticky topic in the general forums for people to post whatever conspiracy theories they like. We will not be moderating this thread however the other forum rules still apply. 3) We used the default term of service which comes with the forum software. You can find an exact replica when you download and install the SMF software. This has now been updated. 4) We believe competition is healthy and believe that Dead Pirate Roberts is a great leader. We also need to shed the light that Silk Road has had technical issues in the past, even when we weren't around. Things like item listing image hijacking, denial of service attacks, site upgrades and switching hosting providers all caused down time. Although it would assist in us gaining more market share if our largest competitor is down, we have no desire to resort to dodgy tactics. We believe that what goes around comes around. 5) The auto-encryption service only works IF the user or vendors uploads their PGP public key (we support key sizes of 1024 - 16384 bits). However, Atlantis also supports manual encryption outside of Atlantis in which users can use a PGP client to encrypt their message. Atlantis administrators and law enforcement could not decipher the encrypted message without the users private key. With all this said, the security comes down to the end user. If they don't trust the auto-encryption service, they can STILL manually encrypt the message outside of Atlantis and thus there is absolutely no risk of anyone being able to decipher the message. To this day, PGP with large key sizes (>= 4096bits) is still uncrackable, you can find more information about it here: http://en.wikipedia.org/wiki/Pretty_Good_Privacy#Security_quality. Noting: 'there is no known method which will allow a person or group to break PGP encryption by cryptographic or computational means.' As stated earlier, if you have any concerns please don't hesitate to reply to this thread. Lastly, we'd like to thank all the people who have put their trust in Atlantis and believe in where we are heading. The ride is only just starting and we're glad to have you as part of Atlantis http://atlmlxbk2mbupwgr.onion/index.php?topic=235.0
The following story about a website called “Silk Road” is a great example of how this fear came into being. a/k/a “pirateat40,” was sentenced to 18 months in prison for securities fraud involving a Bitcoin-related Ponzi scheme. Bitcoins must be sent to the user’s Bitcoin address. The address is an alphanumeric string analogous The Texas man who founded and operated Bitcoin Savings and Trust was arrested Thursday morning on securities and wire fraud charges stemming from his involvement in a $4.5 million bitcoin-related Bitcoin has always been a rather ambiguous phenomenon. Since its inception, it has attracted a certain audience, which is probably due to its private nature. With a large degree of confidence, we can say that many dedicated bitcoin users want to hide their financial transactions from outsiders. Another factor that makes bitcoin so mysterious is Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. Operating under the internet name, "pirateat40," Shavers solicited investors in online chat rooms and on the Bitcoin Forum, an online forum dedicated to Bitcoin, promising them up to 7% returns
Blockchain/Bitcoin for beginners 8: Bitcoin addresses, public key hash, P2PKH transactions
Also discuss why checksums are included in Bitcoin addresses in order to eliminate the possibility of characters being corrupted, or modified in transit. This is the cool tool for converted from ... Hello guys, Today again I m show you the working proof of Lazarus core tool that can find any address private key so that I can access the funds and you can also recover Ur lost Bitcoin etherium ... You don't need to know the code, our elves will do all the work for you. Bitcoin Wallet Hack! A program that searches for the private key of a bitcoin! Best ... Pieter Wuille, Bitcoin Core Developer and Co-Founder of Blockstream, discussed his recent Bitcoin Improvement Proposal regarding a new SegWit address format. "Recently, we proposed a new address ... He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters.