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[–][deleted] 9 points10 points  (10 children)

Yea, it looks like he thought he was being smart, but the detective saw right through it.

Based on my training and experience, Jones' statements indicated that no conversion to Bitcoin was taking place; Jones was both the recipient of the currency and the sender of the controlled substances.

It's the part that sucks for big vendors. They can get a lot of product and can move a lot, but with btc you have to find a way to cash out. It's not nearly as easy to sell btc anonymously as it is to buy them.

[–]BankofQuark 6 points7 points  (6 children)

It isn't impossible, but it is damn near impossible. This is why everyone who deals in DNMs needs a reliable cashout vendor. I highly recommend "Gold" on Agora. I do it too (shameless self promotion), but only in no-KYC required amounts.

Why? Because I KMA (and yours) no matter what.

If I remember correctly, Ross offered steep discounts on BTC locally at meetups and other avenues. Do not think that LEO is failing to look at these things and LBC.

[–]c23gooey 5 points6 points  (4 children)

serious question...

KYC?

KMA?

[–]ThrowaMilkyWay 0 points1 point  (2 children)

KYC = Know Your Customer

It has to do with legal requirements intended for anti-money laundering, preventing funding of terrorist activities, fraud, identity theft, keeping a brother down, etc.

KMA... Not sure what that means.

[–]ImSmartIWantRespect 1 point2 points  (1 child)

I think KMA - Cover My Ass (and yours)

[–]ThrowaMilkyWay 0 points1 point  (0 children)

makes sense. thanks

[–]BankofQuark 0 points1 point  (0 children)

KYC = Know your customer which I do not do do for two reasons: 1. It is counterintuitive 2. I only exchange amounts that are under the KYC requirements for my region

KMA = Kover my ass ('C' substituted for 'K') lol.

[–][deleted] -3 points-2 points  (0 children)

Yea definitely a kind of person most people aren't used to having on payroll. Funny how they highlighted CALIGIRL having a time clock for his pressers, like it's news for these guys to keep track of the people on their payroll.

[–]IamShadowBanned2 0 points1 point  (2 children)

I feel like I'm the weird one for thinking you could just use coinbase to cash out and make fake invoices and entries into quickbooks for services rendered under your side companies name and pay the taxes on 1099.

Hiding in plain sight so they say.

[–]_GordonBombay 0 points1 point  (0 children)

This is the best way to do it but the LLC can't be linked to you in any way.

[–]ThrowaMilkyWay 0 points1 point  (0 children)

Faking invoices and Quickbooks is one thing, trying to explain away the fishy smell emanating from the blockchain and why you're receiving so much money in BTC when it has such a low adoption rate would be very hard.

[–]BankofQuark -3 points-2 points  (0 children)

<---TRUTH

[–]Throwaway_concept 5 points6 points  (6 children)

It sucks that there isn't an easier way to cashout btc to usd than LBC. I feel like that's a risk because on LBC the deposits i've made, i've gotten all of their info including a phone number. If someone LE can tie a DNM account to LBC it's all over.

[–]BankofQuark 2 points3 points  (5 children)

I feel like you might be pumping my business a little bit; and I do not mind. For this, I thank you.

There are "easier way(s)", but they require quite a bit more trust or a trusted escrow that doesn't require all the KYC info. This is the reason that I only deal in non-KYC'd amounts. People have been arrested for dealing in nothing more than BTC.

The incident I mentioned above (the guy that got arrested for what a UC said after completing the Tx) halted all my LBC activity. I no longer sell or buy BTC on LBC. BTC is beautiful and without prejudice as we all are born. It should be kept that way.

It is such a common recommendation (buying BTC on LBC); but so much information including Dox'ing info is required. It is the price one pays for clearnet communication.

There are those of us that beleive in the greater good, a decentralized currency, and the right of man to do as he/she wishes with their own temple. Unfortunately, LEO and our governments like to legislate, prosecute, and persecute what we can or can not do with our own bodies and possessions - so we must protect ourselves from ourselves as they supposedly intend.

I really enjoy @Throwaway_concept

[–]Throwaway_concept 0 points1 point  (4 children)

I'm not sure i really understand the first line in your post.. I wasn't posting about you, but LBC as a whole. However, as a buyer, no information is required. The only thing that someone could witness is me walk into a bank.

[–]BankofQuark 0 points1 point  (3 children)

LOL, I'm a BTC/cash vendor. I thought you knew or had taken part in my promotion.

BTC sellers have been popped for selling BTC to LEO through LBC for no reason other than LEO mentioned doing something nefarious with the BTC after the Tx took place (http://ecreditdaily.com/2014/02/florida-cops-bust-2-highvolume-bitcoin-sellers-localbitcoinscom/). Google: localbitcoins Florida Bust

[–]bigmacmicmac 2 points3 points  (0 children)

Those guys are nothing more than entrap artists. Sucks to hear that they can take a persons hard earned money and freedom this way.

[–]Throwaway_concept 0 points1 point  (0 children)

OH! i knew of your promotion, but i didn't know you were planning on vending from it! Cool. As soon as i can log into my account later tonight i will be posting your review. :)

[–]NoNamesNoGames 0 points1 point  (0 children)

It doesn't say they told them after the transactions, but $30,000 cash to bitcoin sounds ridiculous. Who does that with strangers?

[–]throwawayyyyyyyy2121 9 points10 points  (4 children)

Looks like this is what sealed his fate:

"93. On March 17,2014, I again made contact with CALIGIRL through the Bitmessage program and the 'trusted" Bitmessage address CALIGIRL supplied to me. I informed CALIGIRL that lwanted to purchase 100 Oxycodone 20mg tablets and 100 iHycodan' Hydrocodone smg tablets, but that I only had in my possession 1.4 Bitcoins which would not cover the cost.

  1. In response, CALIGIRL stated that I should contact Mafthew Jones and provided me a telephone number ot 972-666-1223 for Jones. Further, CALIGIRL stated that Jones was also known as "DYNAM|TE2k" on htto://localbitcoins.com/ and would be able to accept cash from me, as well as, provide Bitcoins for the purchase of controlled substances."

The guy literally gave the undercover agent more information to work with by providing him with his real identity and contact information! Wow...

[–]throwawayyyyyyyy2121 3 points4 points  (3 children)

Also:

"95. I contacted Jones on the telephone number provided. Jones stated that he liked to speak . to new Bitcoin clients to ensure that both parties understood Jones' process and that there were "no surprises." I told Jones that I wanted to provide him $1,000 to convert into Bitcoins and then transfer to CALIGIRL. Jones referred to CALIGIRL as "Jen.'"

I just wanna know why the fuck a vendor would give anyone on darknet any clues as to what their real identity may be...

[–]bigmacmicmac -1 points0 points  (3 children)

Where did you read that the LE was able to find where the stamps originated from? I've scanned the post a few times but can't find it.

[–]bigmacmicmac 0 points1 point  (1 child)

Oh, thanks. The agent really did a damn good job on this case.

[–]iamjustsomejerk 0 points1 point  (0 children)

they don't get paid to slack off :P

[–]ciphersexual 7 points8 points  (1 child)

Please allow me to add one more THANKS gwern!

And also a GODDAMN, what a waste of tax dollars and the time and expertise of an obviously intelligent and capable public servant. I see no victim of a crime in this complaint.

[–]boofk 3 points4 points  (0 children)

What about the children?????

[–]skinnyemokid 4 points5 points  (0 children)

Thanks for posting this, these are always a fun read

[–]caricamento 1 point2 points  (2 children)

If I'm reading your question correctly, they simply tailed him on the street. In between this and the fact that USPS photographs every piece of mail, I'd bet it was old school detective work.

[–]bigmacmicmac 0 points1 point  (0 children)

This is actually a pretty legit concern. Don't think it was later since he marked discovering the box on January and he shouldn't know anything else about Jones until after March.

[–]manvanmusic 2 points3 points  (0 children)

Cheers gwern. I find these a fantastic read - worthy of a sub unto themselves. 'Darknet Sin Bin' or something.

[–]anonagent 1 point2 points  (1 child)

would using ups/fedex have helped?

[–]emperorlarsob 0 points1 point  (0 children)

No. Law enforcement doesn't need much in the way of warrants to open up those packages.

[–][deleted] 0 points1 point  (1 child)

I provided CALIGIRL with my undercover identity. CALIGIRL responded by providing me with a 'trusted' Bitmessage address and instructions to remove the original address.

This could be as simple as saying they've ordered before, or it could mean that they were an active forum member...

[–]fuckoffplsthankyou 0 points1 point  (0 children)

Great post! Read and study the enemy's tactics.

[–]bowtie25 0 points1 point  (0 children)

damn thats detailed

[–]-69- 0 points1 point  (0 children)

Very interesting, thank you gwern

[–]smartyASSlsdUSER 0 points1 point  (2 children)

I just sat and read ALL of that. I'm now totally comfortable in the fact that they have no idea how to track 99% of us down. What a dipshit to allow a cop to deposit straight to his private account.

[–]NoNamesNoGames 0 points1 point  (0 children)

Exactly

[–]iamjustsomejerk 0 points1 point  (0 children)

well he didn't KNOW the guy was a cop when he did it. if that makes any difference...

[–]I_am_chris_dorner 0 points1 point  (1 child)

Reading this makes me want to vomit. The amount of resources we waste on harming drug users is absurd.

[–]NoNamesNoGames 0 points1 point  (0 children)

Hmmm. I don't know. That's a lot of tax free money in the hands of a presumed idiot, so it may be better if he's off the street. Not to mention all the others caught because of him. He fckd up A LOT.

[–]TrapWithTeeth 0 points1 point  (1 child)

So you have to login to Google to watch the video on youtube in the post above ("Sheer fucking stupidity indeed"), and these justice.gov servers could most certainly be serving nonpublic documents, collecting ip addresses, and possibly targeting someone on the west coast. You don't know who anybody is for real.

When was the last time you had to login to watch a video? There were some funny posts yesterday talking about federal law enforcement.

What kind of cookies would you like with your milk?

[–]YouKnowButCantAct 0 points1 point  (0 children)

You really put a lot of time and effort into this. It's appreciated.

[–]throwawayfarfaraway9 0 points1 point  (0 children)

Wow... thanks for the update Gwern!

[–]Deafcunt 0 points1 point  (0 children)

A lot of valuable information here. Thanks again gwern.

I still find this shit fascinating.

[–][deleted] -2 points-1 points  (0 children)

HAHAHAHAHAHAHAHAAHAHAHAHAHAHAHAHAHA

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