[HN Gopher] The U.S. cracked a $3.4B crypto heist and Bitcoin's ...
       ___________________________________________________________________
        
       The U.S. cracked a $3.4B crypto heist and Bitcoin's anonymity
        
       Author : gmays
       Score  : 64 points
       Date   : 2023-04-12 17:56 UTC (5 hours ago)
        
 (HTM) web link (www.wsj.com)
 (TXT) w3m dump (www.wsj.com)
        
       | frank_bb wrote:
       | [dead]
        
       | paulpauper wrote:
       | Zhong was caught because he made basic operational security
       | errors, like address reuse (which is how he was caught by linking
       | fraud wallet to exchange wallet) , static IP, using a KYC
       | exchange in 2017 to convert BCH into BTC, etc. Not because
       | Bitcoin was cracked. After being caught, Zhong voluntarily
       | relinquished his passwords to encrypted wallets and other
       | bitcoin, not that the crypto was cracked.
       | 
       | I wonder how the feds bypassed the statute of limitations on
       | this. He was not identified until almost a decade after the
       | theft. I am guessing his attempts at laundering the money and
       | spending, reset the clock.
        
         | hnthrowmeaway wrote:
         | [dead]
        
         | badrabbit wrote:
         | I don't like that. Opsec burden on users is the fault if the
         | protocol. I see this thinking being pervasive in many areas. If
         | it was monero address reuse is not a concern or using kyc
         | exchange logs if the other currency was zcash for example.
         | 
         | Bitcoin is not a cipher it's the whole system so it is valid to
         | say a weakness in bitcoin was used to find the person.
        
         | iudqnolq wrote:
         | Very broadly speaking if you're hiding and law enforcement is
         | actively looking for you the statute of limitations pauses,
         | because the delay is morally your fault. (And actively looking
         | has a generous definition) That could be what happened here.
        
         | NotYourLawyer wrote:
         | > he was caught by linking fraud wallet to exchange wallet
         | 
         | How are you supposed to turn fraudulently obtained btc into
         | dollars without doing that?
        
           | nanidin wrote:
           | I believe you can buy envelopes of cash on the darknet -
           | though then you're probably at high risk of receiving
           | counterfeits or running into a sting.
        
             | jeffy90 wrote:
             | How do you get the physical envelopes of cash without
             | detection?
        
               | mynameishere wrote:
               | Use someone else's address and rob their mailbox.
        
         | Scoundreller wrote:
         | If he just hodled like everyone said to, he'd be free!
        
           | labster wrote:
           | Feds can't take crypto from your grasp if you have diamond
           | hands.
        
       | psd1 wrote:
       | Someone should tell 'em that "Mt. Gox" is short for "Magic the
       | Gathering Online Exchange"
        
         | Cardinal7167 wrote:
         | The internet never forgets
        
       | atdrummond wrote:
       | The US invested so much effort into this because they were
       | worried that their own agents were involved with the theft. This
       | was all part of their effort to clean up the massive corruption
       | post-Silk Road seizure.
        
         | nwah1 wrote:
         | On what basis do you make this statement?
        
           | kenbaylor wrote:
           | Likely on this basis:
           | https://www.bbc.com/news/technology-35038971.amp
        
             | cma wrote:
             | Non-amp link https://www.bbc.com/news/technology-35038971
        
       | RadixDLT wrote:
       | does wsj think anybody is going to read their articles if they
       | block people from reading
        
         | theturtletalks wrote:
         | Go to Archive.to, paste in any paywalled article, use reader
         | mode on mobile and you can read it.
         | 
         | As long as these websites keep pushing the content to the
         | client (for SEO of course), it's fine for us to take it. If
         | they truly want to be paywalled, DRM that text and stop reaping
         | the benefits of Google search.
        
         | boeingUH60 wrote:
         | Well, it costs money to produce well-researched pieces like
         | this, and they have nearly 3 million paying digital subscribers
         | [1].
         | 
         | 1- https://www.adweek.com/media/the-wall-street-journal-grew-
         | di...
        
         | j45 wrote:
         | Even though I might not agree with it, paywalls are around for
         | this long for a reason.
        
       | Anon84 wrote:
       | https://archive.is/U7dSU
        
       | phyzome wrote:
       | Say it with me:
       | 
       | "Bitcoin is not, and never was, anonymous."
        
         | SahAssar wrote:
         | But used as intended (not via a KYC exchange) it is
         | pseudonymous, right?
        
         | fsckboy wrote:
         | better if you could go back and time and have said it early on
         | with the early crypto enthusiasts
        
           | berkle4455 wrote:
           | they didn't listen then and they don't listen now. waste of
           | effort.
        
       ___________________________________________________________________
       (page generated 2023-04-12 23:01 UTC)