DOJ Offers Bitcoin Buyers an Sudden Help

The Division of Justice gave bitcoin traders an sudden help earlier this month. On February 8, the DOJ introduced that it had seized greater than 94,000 bitcoins that had been allegedly stolen when Bitfinex was hacked in 2016. The DOJ additionally introduced that it arrested the couple it believed had laundered the stolen proceeds.

“At the moment’s arrests, and the division’s largest monetary seizure ever, present that cryptocurrency shouldn’t be a protected haven for criminals,” mentioned Deputy Lawyer Normal Lisa Monaco whereas saying the arrests. “In a futile effort to take care of digital anonymity, the defendants laundered stolen funds via a labyrinth of cryptocurrency transactions. Because of the meticulous work of regulation enforcement, the division as soon as once more confirmed the way it can and can observe the cash, it doesn’t matter what type it takes.”

Usually, the DOJ making bitcoin-related arrests is dangerous information for the crypto markets. However these DOJ arrests are literally excellent news.

Two of the largest complaints policymakers have about bitcoin are:

1. Criminals use it. 
2. Bitcoin makes it too simple to launder cash.

The primary argument is nonsensical. Criminals use money, diamonds, paintings and just about something they’ll get their palms on to commit and get away with crimes.

The second argument is the kind of factor that isn’t true. But when it will get repeated usually sufficient, folks consider it. And the concept that bitcoin makes it simple to launder cash has been repeated usually sufficient that folks actually do consider it.

Bitcoin transactions are written onto a public blockchain. And every bitcoin has a novel signature. So you possibly can hint the precise motion of each bitcoin in existence. You may not have the ability to inform who owns every bitcoin each step of the best way. However the transaction historical past is true there in public for anybody who is aware of the place to look.

So bitcoin is definitely simpler to hint than money. As a greenback invoice passes palms, you possibly can’t preserve monitor of the place it’s, not to mention who has it.

And because the current DOJ arrests present, the authorities are capable of monitor and recuperate stolen bitcoin. They usually’re capable of arrest the individuals who attempt to launder stolen bitcoin.

The DOJ proved what crypto lovers have recognized all alongside: criminals who use bitcoin are begging to be caught. And considerations about crypto’s use in cash laundering are overblown.

That makes the longer-term outlook for bitcoin (and crypto on the whole) a lot stronger. One of many chief coverage complaints about bitcoin is disappearing earlier than our eyes, courtesy of the U.S. authorities. 

Thanks, DOJ. We recognize it.