Threat Evaluation: Cash Deposit Bitcoin Acquisition

Just thinking out loud:

As follows:

  1. LE takes down a marketplace, acquires transaction records, and decides to pursue a particular purchaser

  2. Traces the blockchain and discovers coins received via exchange at LBC / Paxful

  3. LBC / Paxful surrenders records of the transaction, which include uploaded images of the bank deposit receipt, which has imprinted the branch number, and timestamp

  4. The bank surrenders DVR imagery of you making the cash deposit.

  5. You receive a knock at the door, and are accused of purchasing bitcoins which were used in an illegal transaction.

  6. You acknowledge buying bitcoins, but deny any knowledge of said illegal transaction. You claim that you may have transfered the coins to another individual (reflected by your transferring the coins from your LBC / Paxful account, to a darknet wallet). You claim you do not know the identity of the individual to whom you transferred the coins, as the exchange was fascilitated via an online forum, such as Reddit. You claim you do not remember any other details.

I suspect that transferring coins from LBC / Paxful to at least 2 different wallets (clearnet => darknet), prior to transferring them into a DNM, creates more than enough reasonable doubt that you were in fact the purchaser in the DNM illegal transaction in question.

EDIT: formatting


Comments


[2 Points] BushidoShogun:

ADDENDUM:

  1. If LE is in possession of marketplace records, they may plausibly be in possession of your drop address. If your drop address is a PO Box, they may be able to acquire DVR footage of you taking possession of the package.

EDIT: spelling


[2 Points] eyelurck:

why not tumble


[2 Points] None:

This is where keeping a clean house comes into place I guess. I never really thought about how the process above would work, but it's kind of scary.


[2 Points] jarxlots:

LE takes down a marketplace, acquires transaction records, and decides to pursue a particular purchaser

At this point, they have the amount, and the wallets involved. They sick algorithms on the BTC blockchain...

Traces the blockchain and discovers coins received via exchange at LBC / Paxful

Note to self: Read more before you begin your reply.

LBC / Paxful surrenders records of the transaction, which include uploaded images of the bank deposit receipt, which has imprinted the branch number, and timestamp

The bank surrenders DVR imagery of you making the cash deposit.

Possibly... I am aware of a few places that wouldn't have that data after say, 3 months. They're probably supposed to, though... but every bank branch, every second, for 3 months+ is a shit ton of storage space.

You receive a knock at the door, and are accused of purchasing bitcoins which were used in an illegal transaction.

You suddenly become mute and begin suffering from acute amnesia.

You acknowledge buying bitcoins

No, you don't, unless it's part of plea bargain, and you have seen that they have you "dead to rights." and the plea is literally your best option.

but deny any knowledge of said illegal transaction.

Nope, now you just tacked on another charge. You don't say shit.

You claim that you may have transfered the coins to another individual

The charges are adding up...

You claim you do not know the identity of the individual to whom you transferred the coins, as the exchange was fascilitated via an online forum, such as Reddit. You claim you do not remember any other details.

Supporting evidence of the prior charge. Digg'n a hole.

I suspect that transferring coins from LBC / Paxful to at least 2 different wallets (clearnet => darknet), prior to transferring them into a DNM, creates more than enough reasonable doubt

Depends. With the BTC blockchain, and no other OPSEC precautions, they would see:

WalletofLBCSeller (Their IP, and amount) => 
YourClearWallet (Your IP, and amount) => 
YourDNWallet (Your IP, and amount) => 
DNM (VendorIP, and amount)

I'd tell you what to do, but I'm kind of sleepy...


[2 Points] bmoreproduct1:

You acknowledge buying bitcoins, but deny any knowledge of said illegal transaction. You claim that you may have transfered the coins to another individual (reflected by your transferring the coins from your LBC / Paxful account, to a darknet wallet). You claim you do not know the identity of the individual to whom you transferred the coins, as the exchange was fascilitated via an online forum, such as Reddit. You claim you do not remember any other details.

Should be replaced by...you say not a god damn thing and ask for an attorney.


[1 Points] None:

Were talking 10k purchase?


[1 Points] None:

Sure why not hugs


[1 Points] free-agent:

Sounds like a lot of work on the part of LE for a couple grams. Just roll a joint and chill out.


[1 Points] trynakick:

I always appreciate these posts on anonymity and staying digitally safe. So thanks for walking through this. However, right now, this just isn't how people get caught. You're so much more likely to get caught driving with drugs in the car, someone you sold to snitching, heck, even the package somehow getting detected (which basically never happens without a tipoff for domestic.

A good operation goes through all threat models, so this is a good thing to do, but in the heirarchy of how people get caught, this is pretty low on the list.


[1 Points] None:

[deleted]


[1 Points] penguinmixer:

If you think that LE will go through that much work to find you, why not acquire bitcoins through cash by mail instead? Yes, you MIGHT get ripped off, but if you send only small amounts at a time you reduce the temptation for someone to do this. Also, use people on LBC who have high reputations and volumes.

Buying using cash by mail is as anonymous as you make it. Don't put a return address on your envelope. Drive far from your home to a rural blue box that doesn't have a camera on it when you mail your letter. Wear gloves to keep your fingerprints and DNA off the envelope. Mail cash that you've received as change for purchases (rather than mailing what you get from the ATM...the ATM might be scanning the serial numbers as it dispenses the money).