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Security / Re: How risky is purchasing BTC via direct bank transfer?
« on: January 12, 2013, 04:56 am »
You guys are missing the fundamental linkability problem with addresses in the block chain. Consider this.
All LE has to do is create a buyer account and transfer 0.1 BTC to their address. Then they watch the block chain as the BTC are moved (always in 2 transactions, if you've ever watched it) to some other addresses, and then some others. Now they've identified addresses in the tumbler, which allows them to identify many more. Some of those addresses will be used to tumble coins from other SR accounts.
Theoretically, they could follow the trail backwards from coins entering the tumbler to the point of sale. That's why you want to anonymize your coins. Is it a real threat? No. I bet there are lots of people who never take the time to read these forums and improve their security, who transfer directly from an exchange to their SR address, and to my knowledge nobody has been busted. LE apparently doesn't have the time, resources, or inclination to go after low level buyers.
But keep in mind that those transactions are stored in the block chain forever, and you never know when LE might get the time, resources or inclination to follow the bitcoin trail back to an exchange that has your info.
All LE has to do is create a buyer account and transfer 0.1 BTC to their address. Then they watch the block chain as the BTC are moved (always in 2 transactions, if you've ever watched it) to some other addresses, and then some others. Now they've identified addresses in the tumbler, which allows them to identify many more. Some of those addresses will be used to tumble coins from other SR accounts.
Theoretically, they could follow the trail backwards from coins entering the tumbler to the point of sale. That's why you want to anonymize your coins. Is it a real threat? No. I bet there are lots of people who never take the time to read these forums and improve their security, who transfer directly from an exchange to their SR address, and to my knowledge nobody has been busted. LE apparently doesn't have the time, resources, or inclination to go after low level buyers.
But keep in mind that those transactions are stored in the block chain forever, and you never know when LE might get the time, resources or inclination to follow the bitcoin trail back to an exchange that has your info.