Rumour has long been that Homeland Security in the United States has been interested in Bitcoin’s role in the buying and selling of drugs and other illegal goods and services, via the dark web in particular.

1. teamsteverhyner.com
http://www.teamsteverhyner.com/homeland-security-bitcoin-task-force-revealed-by-department-of-justice-indictment-form/
Steven L.
Rhyner
Homeland Security Bitcoin Task Force Revealed by Department
of Justice Indictment Form
Rumour has long been that Homeland Security in the United States has been interested in Bitcoin’s role in the
buying and selling of drugs and other illegal goods and services, via the dark web in particular. However, a recent
indictment form leaked from the US Department of Justice has solidified these rumours.
Digital
currency
task
force
The indictment form concerns accused marijuana and cocaine dealer, David Ryan Burchard, and the activities of
Matthew Larsen, a Special Agent with Homeland Security Investigations (HSI). The section in particular that has
concerned many with an interest in hiding their cryptocurrencyactivities comes under the third section in this
document, under the subtitle ‘Facts Establishing Probable Cause’. It says:
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2. “I [Matthew Larsen] am part of a digital currency task force focused on identifying the use of digital
currency to launder the proceeds of criminal activity. As part of this task force, I have been involved in
several investigations into unlicensed digital currency exchangers and narcotics distributors on the
dark web who use digital currency to receive payment for the sale of narcotics. These investigations
have brought my attention to numerous individuals who have been cycling through large amounts of
Bitcoin.”
There have been suggestions that this task force actually monitors the Blockchain in real-time for suspicious
behaviour. In this case, “specifically, in or around March, 2015, I [Matthew Larsen] began investigating David
BURCHARD based, in part, on his sale of millions of dollars of Bitcoins to an unlicensed digital currency exchanger. I
was, and continue to be, unable to identify a legitimate source of BURCHARD’s large amount of Bitcoins.” This has
led many to conclude that the task force is using a combination of public records and real-time Blockchain
monitoring to fulfil their obligations.
Criminal activity
For those who use Bitcoin for more
nefarious reasons, this could come
as a blow to the perceived
anonymity and safety of the virtual currency. However, for the vast majority of users whose actions are all ‘above-
board, they need not worry, as the US is only concerning itself with the narcotics-related Bitcoin transactions, that is,
for the moment.
Following the forced closure of the exchange, ‘The Silk Road’, that ran on the TOR network, the ‘industry’ has been
hit in quick succession by a number of actions that have attempted to curb the internet exchange of drugs. For those
who have sought safety for their drug dealings on the ‘dark web’, this will only serve as further proof of the
increasing grip states have over their activities.
In a statement to technology magazine, Motherboard, the Tor Project said of the claims that Carnegie Mellon
University had co-operated with the FBI in an attempt to breach the network’s security: “the Tor network is secure
and has only rarely been compromised. The SoftwareEngineering Institute (“SEI”) of Carnegie Mellon University
(CMU) compromised the network in early 2014 by operating relays and tampering with user traffic. That
vulnerability, like all other vulnerabilities, was patched as soon as we learned about it. The Tor network remains the
best way for users to protect their privacy and security when communicating online.”
Furthermore, before that, in late 2013, it was learned that the FBI had installed malware on websites that were
hosting child pornography through the taking over of the servers that were hosting it, further proving the United
States’ global internet reach.
Could this spell the end of the narcotics exchange industry’s dealings on the TOR browser, or will it only serve as a
token reminder of the great risks associated with being employed in such a highly-prosecuted industry?
The full indictment form can be read here. I highly recommend reading it.
Re-posted from www.cointelegraph.com April 7, 2016 by Charlie McCombie
For information regarding a cash flow business using Bitcoin mining to purchase secure hard assets like
gold and silver click here.
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