Tracing stolen Bitcoin

[tb303]

This is an interesting video regarding the future of tracing "bitcoins". At 6:30 in or so he says they (Cambridge Uni I presume) will be releasing this publicly. Finding out the bitcoins you own are stolen ("tainted") when you come to convert them back to fiat wont be a nice experience.

Does anyone have any other links to this research? I cant find anything directly related to it.

 

[greenhut]

Asking for a friend?

Aren´t there tools/procedures that circumvent these kind of tracking?
I read somehere a while ago of a couple services.

 

[jazzc]

"blessed with regulations"

In regards to their technique, what he's really saying they do is this:

a) you know 2 specific BTC are stolen and moved to wallet X
b) you know 4 other BTC were not stolen and also moved to wallet X
c) Wallet X sends all its BTC to various people.
d) We track the first 2 BTC that eventually come out of wallet X (ignoring the rest).

I can't see how this will hold in any court in a country were there exists the presumption of innocence.

 

[Billy Batts]

 

[bartosimpsonio]

a) you know 2 specific BTC are stolen and moved to wallet X
b) you know 4 other BTC were not stolen and also moved to wallet X

This kills their system.

 

[INCC]

This is BS and works against people who dont have any brains.

 

[tb303]

I can't see how this will hold in any court in a country were there exists the presumption of innocence.

From my limited understanding of that part though. The Clayton case and "first in first out" has already been used to recover money in standard fraud cases. The legal stuff is way above my pay grade and all the google results are a very dry read for a weekend. I suppose at some point there will be a test case to apply the same principle in regards to cryptocurrencies?

The video doesnt mention any specifics of their tracing technique. I was wondering how granular it can go. In the video he obviously refers to "bitcoins" for simplicity when really were talking about Satoshis. What is the end result if a transaction is sent through a mixer that creates a lot of very small outputs? Surely if that happens enough everyone ends up with some small amounts of "tainted bitcoins"?

 

[jazzc]

From my limited understanding of that part though. The Clayton case and "first in first out" has already been used to recover money in standard fraud cases. The legal stuff is way above my pay grade and all the google results are a very dry read for a weekend. I suppose at some point there will be a test case to apply the same principle in regards to cryptocurrencies?

The video doesnt mention any specifics of their tracing technique. I was wondering how granular it can go. In the video he obviously refers to "bitcoins" for simplicity when really were talking about Satoshis. What is the end result if a transaction is sent through a mixer that creates a lot of very small outputs? Surely if that happens enough everyone ends up with some small amounts of "tainted bitcoins"?

To give you an analogy:

A murderer gets on a bus first. You get on second. Then others come in. You get out of the bus first. You are flagged as a murderer.

Why? Because they only know the murderer got there first but don't know who's getting out, so they just say "first one gets in, first one gets out" ... "principle". Would that "reasoning" get you in jail for life?

 

[greenhut]

If it is like that, the problem is solved by just sending first a small random % to a dummy address (locked forever, lost btc) and the rest to a mixer.
Voila, happy criminals..

 

[virtualpurity]

To give you an analogy:

A murderer gets on a bus first. You get on second. Then others come in. You get out of the bus first. You are flagged as a murderer.

Why? Because they only know the murderer got there first but don't know who's getting out, so they just say "first one gets in, first one gets out" ... "principle". Would that "reasoning" get you in jail for life?

Their whole system is flaw, since bitcoins can be transferred between users as well and not only on exchanges, so let say someone uses the stolen BTC to buy a service from somewhere/someone, using your analogy that doesn't make the service seller the "killer" once he withdraws the money..

 

[Alexpaberla]

Their whole system is flaw, since bitcoins can be transferred between users as well and not only on exchanges, so let say someone uses the stolen BTC to buy a service from somewhere/someone, using your analogy that doesn't make the service seller the "killer" once he withdraws the money..

Send stolen Bitcoin to Exchange convert them to monero .

Send monero to another Exchange Exchange them to verge .

Send verge to another Exchange , Exchange them back to Bitcoin

Easy ...

Everything can be done using vpn and changelly For example ( changelly is an automatic exchange not registration is required )

Blackhat forum .... use blackhat methods

 

[Agerzef]

Asking for a friend?

Aren´t there tools/procedures that circumvent these kind of tracking?
I read somehere a while ago of a couple services.

Dark Wallet