Financial Privacy Under Fire: DHS Freezes Bitcoin Money Transfers

Financial Privacy Under Fire: DHS Freezes Bitcoin Money Transfers

investmentwatchblog.com

Financial privacy free of government intrusion and interference is dead.

In what seems to be the government’s latest attack on private transactions between individuals, the Department of Homeland Security has shut down funds transfers operated by mobile processing platform Dwolla, which is responsible for managing transfers for the BitCoin digital currency exchange.

Details are still sparse, but a spokesperson for U.S. Immigration and Customs Enforcement (ICE) confirms that an investigation is in progress and Dwolla is no longer able to accept currency transfers for its custom

(visit the link for the full news article)



Related AboveTopSecret.com Discussion Threads:
Digital 'bitcoin' currency surpasses 20 national currencies in value
Got questions about bitcoin? Ask them here.

Personally I have never used Bitcoin but have given it some thought. I must also admit that I do not know too much about it even though I do have a decent understanding about how the currency works.

This appears to be another money grabbing attempt by government entities, we all know that they hate not being included in anything that is profitable, and if it interferes with their profits they will do anything within their power to stop it.

Bitcoin has had some ups and downs but this news gives me the impression that the "Bitcoin Bubble" has not bursted and in fact this currency has certain government entities worried.

There are most likely some legal aspects I am overlooking but I still do not condone anyone having a monopoly on our currencies and how we choose to spend our money. Yes, regulations do need to be put in place but the system is already such a farce that I have no pity for those who try and monopolize on our spending habits.

investmentwatchblog.com
(visit the link for the full news article)

This would be why I never touched bitcoin in any way that matters...for anything that matters. New generations can make a great case for money/currency or whatever someone wants to call this, that doesn't exist and has no physical form.

In the end? It's still a construct with no form...hence no meaning ...hence no value. Everything else is perceptions and faith of value. Not unlike our real money. At least real money still gives me paper to show I'm supposed to have some.

I feel sorry for people who got burned on this....but what did they expect? The whole point was some rebellious notion of a currency beyond reach of the authorities? Well.. That was a foolish belief that was going to be crushed eventually. I just hope the reality didn't come TOO painfully for everyone involved.

reply to post by Corruption Exposed


Any system, method, tactic or strategy to work outside the western banking syndicate will be attacked by all available means by the US government. Corporations have superior ownership rights to the USA and they ruthlessly protect their status quo.

It is because of BitCoin's genius that it will be attacked and destroyed.

reply to post by InverseLookingGlass


I'd question the genius of creating an entire underground currency for an underground economy which is, itself, entirely based within the Ether and Cloud formed by......The Government's own computer network.

Let's NEVER forget, the internet started like as a military network by DARPA (ARPA-Net and such) to simply survive a nuclear war with communications intact. The fruit never falls far from the tree, which is to say, the world wide networks are still...to this day...built around, on top of and through the most sophisticated military switching points in the world. (Fort Huachuca, anyone?)


Like so much else.....I admire the thought and energy behind it. I shake my head at the disconnect between theory and reality ...which was literally a matter of cabling connection and network routing for all to see.

You would think that Dwolla would have already planned for just such a contingency. Allowing DHS to think they had been successful when in fact leaving them with an empty sack. If they had not planned for this or thought that it couldn't possibly happen they are naive.

On the other hand, Dwolla could have sold out to the gov and are now just playing the game. Those that were into the Bitcoin system would just be sold up the river in the process and Dwolla could point the finger at DHS. Clean with no loose ends and the customers got fleeced.

IMHO I think the US government is just trying to find ways that it can get a piece of the bitcoin pie. If bitcoin hasn't been deemed illegal then leave it alone.

reply to post by Corruption Exposed


It sucks to be right about all of this.....I called this from day one unfortunately!

I feel for my fellow ATS members who thought this was the best thing since sliced bread.....I tried to warn everyone I could....Sorry for those who didn't believe me!

Sad day for people who have tons of money and time invested in this....

Just another government/IMF money-grab tactic. They want a cut every time people trade or barter. If by now we've become amenable to having an income tax they feel that is just not enough. The money people just don't want us trading with any medium of exchange other than their own, that is unacceptable. They are afraid you might use these currencies for trading in contraband, and they won't get their cut.

I suppose they (DHS and their overlords) say that this is for our protection, right? So committed to our protection they will destroy our assets for us, just make them vanish like they would warn us about happening, ostensibly to keep us from getting in any deeper. They want to keep us and our assets protected and subject to their inflations, manipulations, and attrition.

Fiat currency is fiat currency, and it works! Evidently it is a viable system for trade and exchange. You just aren't allowed to be invested in any system less greedy than their own, which most any other likely would be - at least when starting out. Look what happens to Presidents and national leaders that attempt to utilize their own treasuries and governmental assets. Poof! or Bang!

Originally posted by Chrisfishenstein

 

It sucks to be right about all of this.....I called this from day one unfortunately!

I feel for my fellow ATS members who thought this was the best thing since sliced bread.....I tried to warn everyone I could....Sorry for those who didn't believe me!

Sad day for people who have tons of money and time invested in this....

Were you thinking such a thing could not work? Or that such a thing would not be allowed to work?

We mobilze for war any time someone in the world gets such bright ideas with their own economy. Global economic security must be maintained at all costs. That's what we pay taxes for.

reply to post by Erongaricuaro


the govt does not get a cut of EVERY transaction - further - anyone incapable of running a portion of thier budget " grey market " doesnt deserve the benefits

Doesn't seem like a problem to me at all, they can just base it in Sweden, Germany or indeed any country that doesn't accept the US's claim to own the internet. It's not the only exchange for Bitcoin anyway.

And for the record, bitcoin is based upon something, which makes it far more valid than fiat currency

Originally posted by MaxSteiner
Doesn't seem like a problem to me at all, they can just base it in Sweden, Germany or indeed any country that doesn't accept the US's claim to own the internet. It's not the only exchange for Bitcoin anyway.

And for the record, bitcoin is based upon something, which makes it far more valid than fiat currency

Are you completely sure that the countries you mentioned would ignore the US's requests?

I do agree with your statement where you point out the value of Bitcoin versus fiat currency.

reply to post by Corruption Exposed

Are you completely sure that the countries you mentioned would ignore the US's requests?

They do all the time for example peer 2 peer, and bitcoin.

The DHS can cry about it all they want to, but when it comes to the internet things people shouldn't have people always get.

reply to post by Corruption Exposed


Well they ignore DMCA takedown requests - and they're the preferred locations to host torrent sites and other borderline copyright infringement sites. You might recall all the hooha over the Pirate bay? Sweeden in the end threw the charges out despite very heavy pressure from the US.

They aren't the only ones though, they're just the most reputable places to host such things - if you want to go further you can host on an offshore oil rig/sea fort in international waters for a steep price, China is willing to turn a blind eye to almost anything as long as it isn't aimed at their citizens and Russia seems to take the view that anything which doesn't detract from them is good for the country, even if it pisses off the rest of the world.

I own a few websites and have had to look into cast iron hosting before

The US, or rather all English speaking nations do have full access to everything which happens on the internet thanks to the Echelon system and they can manipulate and coerce thanks to treaties and threats- but they don't control it.

Originally posted by MaxSteiner
And for the record, bitcoin is based upon something, which makes it far more valid than fiat currency

I wasn't sure how it worked. I figured a few others may not know much about it either and could use a quick lesson. This isn't the best source so add to or correct anything that helps describe it better. Sounds less greedy than the system we currently use - a system with NO limitations to inflation or the amount of dollars that can be produced, and not accountability or even to divulge the identity of the people who have control over the US Federal Reserve.

en.wikipedia.org...

The initial prices for bitcoins were set by individuals on the bitcointalk forums. One notable transaction involved a 10,000 BTC pizza

Bitcoin is one of the first implementations of a concept called "crypto-currency". Crypto-currency or math-based currency is a new form of money that uses cryptography to control its creation and management, rather than relying on central authorities.

The processing of bitcoin transactions is secured by servers called Bitcoin miners. These servers communicate over an internet-based network and confirm transactions by adding them to a ledger which is updated and archived periodically.

In addition to archiving transactions each new ledger update creates some newly-minted bitcoins. The number of new bitcoins created in each update is halved every 4 years until the year 2140 when this number will round down to zero. At that time no more bitcoins will be added into circulation and the total number of bitcoins will have reached a maximum of 21 million bitcoins.

reply to post by neo96


I was only curious because several other countries have caved into pressure from the US and other nations when it comes to similar issues. You are right that there is a chance that they will tell the DHS to get lost, but people with friends in high places have tricks up their sleeves to help "get their way" so to speak.

That being said, there is most likely a way around this for Bitcoin and it's users to continue, but I believe this incident may cause people to reconsider using Bitcoin as a currency, or at the very least consider new options on how to operate it.

That is my opinion at least.

They've just shut down Dwolla, not the whole bitcoin market. Maybe there's some kind of illegal activity going through the site, and it's not actually link to bitcoins as such. And I know that alot of illegal activity IS paid for with bitcoins, and as of the moment, is the only market which has welcomed bitcoins with open arms. Go to places like sky road, full of dealers selling all kinds of things from drugs to kiddy porn. (so I've been told!)

Maybe this isn't an assault on bitcoin as a currency, but the nefarious things which it is enabling?

Mt.Gox handles over 80% of all the worlds bitcoin transactions, as they are a Japanese bank there's not a lot the US can do about that... at least legally.

mtgox.com...

Although some unknown entity has be regularly DDoS'ing their servers since April...i wonder who that could be ?

I just checked mt.Gox and you cant even get to the site right now. Its been fine all week. Funny how its being DDoS'd today after hearing this news. Hmm...coincidence ?

reply to post by Erongaricuaro


Hmmm... So, basically, it's an electronic currency some folks just thought up one day..and it remains an electronic currency still humming along on rules of it's own design, for it's own development.

I appreciate the quick explanation and it seems to just support my deepest misgivings. One can compare this to the US dollar and say the greenback is worse by being a fiat currency ...and they do. That always makes me feel nervous though, when a leading argument to support a thing is to compare how a real failure is 'worse'. Kinda strikes me as the whole wrong foot to start on..lol

In the end though. If I have a fortune in bitcoin, and by some catastrophe of technology, electronic records as we know them just kinda plop in the big commode of history? What wealth to I still hold? It seems to me...I never had anything that could sit in my hand as a gold coin or silver ingot can. So...in the end, I'd be left with as little as I started, wouldn't I?