Miami, a city known for its opulent lifestyles and cryptocurrency-friendly laws and mayor, has seen one of the most aggressive crackdowns on cybercriminals using bitcoin.<\/p>\n
Federal prosecutors confiscated roughly $34 million in cryptocurrency from a man in the southeastern part of Florida. The bitcoin fortune was amassed by a Parkland resident suspected of exploiting the dark web to sell Netflix, HBO, and Uber account information, among other popular services.<\/p>\n
The crypto holdings in question were initially valued at $47 million, but because of the drop in the price of the world\u2019s most sought-after cryptocurrency during the last six months, its current value is at $34 million.<\/p>\n
Record Bitcoin Confiscation<\/h2>\n
According to a news release from the US Department of Justice, the seizure was one of the largest ever brought by the US involving cryptocurrencies.<\/p>\n
The DOJ did not identify the \u201cSouth Florida citizen\u201d involved in the criminal transactions, and the news statement did not indicate if the agency is pursuing an indictment.<\/p>\n
Suggested Reading | The Blockchain Is The Future Of Hollywood, Departing WarnerMedia CEO Says<\/a><\/em><\/strong><\/p>\n Between 2015 and 2017, the individual allegedly perpetrated more than 100,000 fraudulent online transactions.<\/p>\n According to court records, there was a dearth of proof regarding the person\u2019s misdeeds.<\/p>\n As a result, the Miami feds began to track the Parkland resident\u2019s cryptocurrency holdings, whose residence was searched but no conclusive proof was discovered.<\/p>\n Prosecutors stated:<\/p>\n \u201cDark web, or darknet, marketplaces are purpose-built to encourage unlawful business by ensuring the anonymity of the website\u2019s administrators, as well as the buyers and sellers who transact on the site.\u201d<\/p>\n<\/blockquote>\n Additionally, the release detailed how the suspect gained access to the dark web in order to obtain the criminal information and recompense in the form of crypto.<\/p>\n To begin, the suspect accessed the dark net via a globally distributed network of computers that masks users\u2019 IP addresses, dubbed The Onion Router Network, or TOR.<\/p>\n Suggested Reading | South Korean Tech Giant Kakao Acquires Majority Stake In A Japanese Crypto Exchange<\/a><\/em><\/strong><\/p>\n Further examination of the suspect\u2019s data revealed that he then used so-called \u201ctumblers\u201d to launder cryptocurrency through a practice called \u201cchain hopping.\u201d<\/p>\n In essence, tumblers are similar to blenders. Individuals enter the coin they wish to conceal, which is cut up into pieces and mixed with a number of other, clean coins before being spewed out to random addresses.<\/p>\n According to court records, the suspect did not contest the US government\u2019s seizure of his cryptocurrency.<\/p>\n The Federal Bureau of Investigation shut down Silk Road, a dark net marketplace that had produced over $1 billion in illegal transactions in 2013, making dark web marketplaces and the role of cryptocurrencies in their economic activities well-known.<\/p>\n Silk Road\u2019s founder was convicted to life in jail in 2015 in a case that garnered widespread attention and was detailed in a 2017 documentary.<\/p>\n \u00a0<\/p>\n\n
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BTC total market cap at $865.41 billion on the daily chart | Source: TradingView.com<\/a><\/pre>\n
On Tumblers And Chain Hopping<\/h2>\n
Featured image from Investopedia, chart from TradingView.com<\/a><\/pre>\n
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Bitcoinist @ Bitcoin 2022 Miami<\/h3>\n<\/p><\/div>\n