Content adapted from this Zerohedge.com article : Source
During the Silk Road trial, how did the government know what Ross Ulbricht was up to? The FBI claimed that it found out on their own, something that many in the crypto community questioned. This point was raised by Ulbricht's defense team but the judge dismissed the evidence.
Ulbricht received a life sentence in prison.
It turns out that the evidence was inadmissable in court. The FBI did not find out the information on their own. Recent NSA documents released by Snowden reveal the tracking of bitoin since 2013.
It turns out the conspiracy theorists were onto something. Classified documents provided by whistleblower Edward Snowden show that the National Security Agency indeed worked urgently to target Bitcoin users around the world - and wielded at least one mysterious source of information to "help track down senders and receivers of Bitcoins," according to a top-secret passage in an internal NSA report dating to March 2013. The data source appears to have leveraged the NSA’s ability to harvest and analyze raw, global internet traffic while also exploiting an unnamed software program that purported to offer anonymity to users, according to other documents.
The NSA relied on a program called MONEYROCKET to garner the information. It is primarily used to thwart terrorist in Africa, Asia, and South America.
The documents indicate that "tracking down" Bitcoin users went well beyond closely examining Bitcoin’s public transaction ledger, known as the Blockchain, where users are typically referred to through anonymous identifiers; the tracking may also have involved gathering intimate details of these users’ computers.
The NSA collected some Bitcoin users’ password information, internet activity, and a type of unique device identification number known as a MAC address, a March 29, 2013 NSA memo suggested. In the same document, analysts also discussed tracking internet users’ internet addresses, network ports, and timestamps to identify "BITCOIN Targets."
The NSA’s budding Bitcoin spy operation looks to have been enabled by its unparalleled ability to siphon traffic from the physical cable connections that form the internet and ferry its traffic around the planet. As of 2013, the NSA’s Bitcoin tracking was achieved through program code-named OAKSTAR, a collection of covert corporate partnerships enabling the agency to monitor communications, including by harvesting internet data as it traveled along fiber optic cables that undergird the internet.
Specifically, the NSA targeted Bitcoin through MONKEYROCKET, a sub-program of OAKSTAR, which tapped network equipment to gather data from the Middle East, Europe, South America, and Asia, according to classified descriptions. As of spring 2013, MONKEYROCKET was “the sole source of SIGDEV for the BITCOIN Targets,” the March 29, 2013 NSA report stated, using the term for signals intelligence development, “SIGDEV,” to indicate the agency had no other way to surveil Bitcoin users. The data obtained through MONKEYROCKET is described in the documents as “full take” surveillance, meaning the entirety of data passing through a network was examined and at least some entire data sessions were stored for later analysis.
The NSA's involvement means anonymity went away immediately.
Emin Gun Sirer, associate professor and co-director of the Initiative for Cryptocurrencies and Contracts at Cornell University, told The Intercept that financial privacy “is something that matters incredibly” to the Bitcoin community, and expects that “people who are privacy conscious will switch to privacy-oriented coins” after learning of the NSA’s work here. Despite Bitcoin’s reputation for privacy, Sirer added, “when the adversary model involves the NSA, the pseudonymity disappears. … You should really lower your expectations of privacy on this network.”
Green, who co-founded and currently advises a privacy-focused Bitcoin competitor named Zcash, echoed those sentiments, saying that the NSA’s techniques make privacy features in any digital currencies like Ethereum or Ripple “totally worthless” for those targeted.
Bitcoin was not the only target of the probes. The government was able to track down Coast Rican based Liberty Reserve for money laundering and hand down a 20 year prison sentence.
The March 15, 2013 NSA report detailed progress on MONKEYROCKET’s Bitcoin surveillance and noted that American spies were also working to crack Liberty Reserve, a far seedier predecessor. Unlike Bitcoin, for which facilitating drug deals and money laundering was incidental to bigger goals, Liberty Reserve was more or less designed with criminality in mind. Despite being headquartered in Costa Rica, the site was charged with running a $6 billion “laundering scheme” and triple-teamed by the U.S. Department of Justice, Homeland Security, and the IRS, resulting in a 20-year conviction for its Ukrainian founder. As of March 2013 — just two months before the Liberty Reserve takedown and indictment — the NSA considered the currency exchange its No. 2 target, second only to Bitcoin. The indictment and prosecution of Liberty Reserve and its staff made no mention of help from the NSA.
This revelation is distrubing to many people where anonymity from government spying is a life or death proposition although it does have defenders.
The hypothesis that the NSA would “launch an entire operation overseas under false pretenses” just to track targets is “pernicious,” said Matthew Green, assistant professor at the Johns Hopkins University Information Security Institute. Such a practice could spread distrust of privacy software in general, particularly in areas like Iran where such tools are desperately needed by dissidents. This “feeds a narrative that the U.S. is untrustworthy,” said Green. “That worries me.”
The fact that the NSA is illegally feeding information to the FBI and other law enforement agencies should be a worry to people.
Civil libertarians and security researchers have long been concerned that otherwise inadmissible intelligence from the agency is used to build cases against Americans though a process known as “parallel construction”: building a criminal case using admissible evidence obtained by first consulting other evidence, which is kept secret, out of courtrooms and the public eye. An earlier investigation by The Intercept, drawing on court records and documents from Snowden, found evidence the NSA’s most controversial forms of surveillance, which involve warrantless bulk monitoring of emails and fiber optic cables, may have been used in court via parallel construction.
Non-adapted content found at zerohedge.com: Source
Amazing post.Thanks for sharing it
Anything that is empowering the people to financial freedom by removing it from the global elite will get the full attention of all the government agencies. After all who funds these departments? I’ve pretty much learned the more you know about government, the less it you trust them. It obvious anything that causes a lose of profit for the government or tarnishing government's good name (LOL) is considered a danger to national security.
Too bad for them the pie is already bigger and no body cares what they think , since most of the people using bitcoin are sincire and legit guys who want a dicent living from crypto.
It was unfortunate that Ross Ulbricht's secrets were traced by tracking he's bitcoin activity.. I've realised bitcoin is one of the few technologies that would reveal the true identity of a person.. Getting the mac address of a person's gadget is a big score when one is being tracked. The government uses all means at it's disposal to be ahead of the public in everything especially when it comes to security. I recently learnt that they go to an extent of using facebook to reveal more about the users.. Facebook gives out users information to agencies in need of specific information about a user. And this is information that we share at ease.. like location, one's daily routines.. A lot that can easily get the government what they want to know when they want to. We should just be more vigilant when using anything that has a connection with tech because the government won't stop. And the worst thing is it's legal to monitor someone.
very nice post
So, after all the resources they used to track Bitcoin users, I wonder, how many terrorists were arrested? I could give the answer myself: Not a single one. I have yet to see one article about any terrorist having even been arrested, let alone convicted of using any Cryptocurrency to buy or sell any weapon. The only News I ever see is White Collar shit. Someone mining in a Public Servant position, using Public Service Utilities. Or, someone scamming someone with fake Cryptos or some shit. Yet the DHS is justifying using millions of taxpayer dollars to "protect" us? Bullshit. The DHS is the scam. They aren't saving anyone. They're stealing from U.S. Citizens.
Coins mentioned in post:
The Internet is just a giant HoneyPot!
I must that will be a good way to catch those money looters most especially in my country nigeria
Man that is huge! The NSA track the Bitcoin since 2013 shows how spying of United States is getting more and more powerful, and that creates a problem for privacy and liberty of all people around the world. Thanks for sharing @zer0hedge.
I would be very surprised if the NSA does not have whatever info they deem useful at their disposal. With todays tech and with the taxpayers money there are rarely impossible things.
Info sharing does not come as a surprise. I believe they have a lot of agreements for intellingece sharing between the various agencies.
Too bad for them the pie is already bigger and no body cares what they think , since most of the people using bitcoin are sincire and legit guys who want a dicent living from crypto
Interesting.. I wonder if spooks use crypto..? Read somewhere recently that Bitcoin was originally created by CIA. That's probably not the craziest theory out there anyway. But on the other hand, if all the records are public, then that kind of defeats the point, doesn't it?
Big brother loves bitcoin & all traceable forms of currency. Got Gold?
really very interesting your post I liked, although it was long to read, it was worth doing it, I can say that made me ask many questions, I hope that my comment you can lear and especially take into account many thanks for that post
Just like every document released by Snowden, this is another part of the scandal, the US is worried about people buying Huawei phones because the chinese might be spying on people, but the reality is that they are doing it to everybody in the world and always denying it, I don't know who believes in those lies...
Let´s be real, the technology introduced in the world is too much in such a short amount of time and normally big countries like the US want to be informed about everything so they can have an advantage to make a move before anyone else.