Brother gets caught by FBI/IRS after spending Bitcoin subject to forfeiture. \ stacker news ~bitcoin

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Brother gets caught by FBI/IRS after spending Bitcoin subject to forfeiture.www.justice.gov/opa/pr/man-sentenced-stealing-over-712-bitcoin-subject-forfeiture

1361 sats \ 8 comments \ @broadmode 29 Apr 2023 bitcoin

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10 sats \ 0 replies \ @flyingburrito 29 Apr 2023 freebie

Narrative is key:

a darknet-based cryptocurrency money laundering service

Sure, there was probably laundering occurring, but some people just want more privacy.

25 sats \ 0 replies \ @sudonaka 29 Apr 2023

Lmao IRS doesn’t know how to hold their own keys

10 sats \ 1 reply \ @Louferlou 29 Apr 2023

I'm really curious to know how he get caught, he surely bought thing at his name with the mixed BTC, and was enable to justify the origin of the funds to the IRS. More infos on the "online mixers" he used would be interesting.

Don't you think that lightning with blinded path and other privacy improvements will soon be more suited for illegal activities than on-chain Bitcoin ?

11 sats \ 0 replies \ @broadmode OP 29 Apr 2023

It sounds like, as opposed to keeping the sats in the Bitcoin-only economy for the long haul, he repatriated them into the fiat economy and, surprise, got caught.

The agencies likely surveiled close friends and family for extravagant fiat purchases after the Bitcoin 'went missing'. Gary got impatient and starting making out-of-place purchases in his name, likely after exchanging the Bitcoin for fiat.

1 sat \ 0 replies \ @broadmode OP 29 Apr 2023

"Knowing that the government was seeking to recover the #bitcoin stored on the seized device for forfeiture in Larry Harmon’s criminal case, Gary Harmon used his brother’s credentials to recreate the bitcoin wallets stored on the device and covertly transfer more than 712 bitcoin, valued at approximately $4.8 million at the time, to his own wallets – stealing those funds and obstructing the pending criminal forfeiture proceeding. Gary Harmon further laundered the proceeds through two online bitcoin mixer services before using the laundered bitcoins to finance large purchases and other expenditures."