Report: Bitcoin transactions to law enforcement authorities, are traceable

Report: Bitcoin transactions to law enforcement authorities, are traceable

Home News report: are Bitcoin transactions for law enforcement agencies traceable

Of
Marcus Misiak –
18.09.2018

A long time there was the myth that the Sending of Bitcoin is completely anonymous and not traceable. How VICE is in the context of a current report, very clearly, is the become Understand because of the world, in the last few months tightened the rules against money laundering and terrorist financing, but still much easier than Many think perhaps. We tell you what you can do to your privacy.

As an example of how easily law enforcement authorities, Bitcoin transactions can comprehend, the Portal Vice the to Take the alleged Russian spies, which should have intervened in the US presidential election in 2016. The group of alleged Russian intelligence agents accused of the Hacks of the Democratic National Committee and the Clinton campaign should have handled your surgery with 95,000 dollars in Bitcoin and other crypto-currencies. The Hacker used, allegedly, Bitcoin, to buy the domains, servers, and accounts, which were involved in the procurement and distribution of stolen materials.

This should be up to the hackers to be disastrous. Since each Bitcoin transaction is recorded in the public Ledger, was able to trace back the prosecution of the Bitcoins to their origins, which are initially only Numbers and letters. As soon as she had followed enough of the steps, and through a series of transactions, navigated, could the investigators find a place where Bitcoins were purchased. This is the key, as a crypto-currency exchanges worldwide are being forced due to increasingly stricter rules, Anti-Money Laundering (AML) and Know your customer (KYC) guidelines. The law enforcement authorities may request for the stock markets, the transaction data, in connection with the personal data (Name, address, photo ID, etc.), and then on the basis of the transaction history trace on the Blockchain all of the transactions up to the Details.

Blockchain developer, Tim Cotten showed VICE News, as everyone with a Bitcoin Wallet is the same. In the Video below, Cotten goes through, such as a subpoena allows law enforcement authorities to find out exactly who has made on a certain day of a certain Bitcoin transaction to identify the Person by Name, birth date and legal residence.

What can be done to the privacy of restore?

As previously explained, the Bitcoin Blockchain is no unique user ID or a real geographical location, which is why they are also called pseudo-anonymous. However, it is still a public record of every transaction, the date, time, IP address, Wallet ID and the amount of a transaction record. So, what can be done to your privacy?

There are several basic methods to increase the privacy in the Bitcoin network. Such a simple solution is the use of TOR to hide the IP address. If Bitcoin can be used to transfer transactions via TOR, there is no way to determine where they come from.

Another simple solution is the creation of a new address for each transaction. This makes it more difficult to associate addresses with real identities, as this would at least require more Clustering. A slightly more complex method is the use of mixers. When Mixing the Bitcoin to be sent to a Pool and then with the BTC of other users are mixed. This gives Bitcoins from Wallets that are not connected with the own Wallets. Thus, the connection between the old and new Wallets will be capped. If it does, it meets the Mixing of the analysis of transaction networks, as well as the Taint analysis.

By no means this should be a call to commit illegal acts or instructions on how one can use this disguise. Rather, impunity should not be confused with anonymity, the privilege of every individual in a free society.