The Manhattan District Attorney has charged a man with robbery and kidnapping after he swiped a digital wallet containing a fortune in ethereum cryptocurrency. Louis Meza and an associate allegedly held up the victim at gunpoint after luring him into a vehicle, then stole his keys, wallet and cellphone. Meza used the keys to enter the victim’s apartment and make off with his digital wallet. Shortly afterwards, he transferred $1.8 million in “ether” cryptocurrency to his own wallet. According to the DA’s press release, Meza knew the victim and knew he had a large amount of ethereum. After meeting the victim on the evening of November 4th, “Meza insisted on ordering a car service for the victim, who entered a minivan after parting ways with Meza, ” the DA stated. The perpetrator was also charged with computer tampering, criminal possession of stolen property, and computer trespass. The DA notes that the crime is a vivid illustration that hacking isn’t the only way crooks can get their hands on your Bitcoins and other crypto-cash. “This case demonstrates the increasingly common intersection between cyber and violent crime, ” said NY County District Attorney Cyrus Vance. “We can expect this type of crime to become increasingly common as cryptocurrency values surge upward.” Via: Coindesk Source: New York County District Attorney
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SonicSpike shares a report from The Daily Beast: You can use bitcoin. But you can’t hide from the taxman. At least, that’s the hope of the Internal Revenue Service, which has purchased specialist software to track those using bitcoin, according to a contract obtained by The Daily Beast. The document highlights how law enforcement isn’t only concerned with criminals accumulating bitcoin from selling drugs or hacking targets, but also those who use the currency to hide wealth or avoid paying taxes. The IRS has claimed that only 802 people declared bitcoin losses or profits in 2015; clearly fewer than the actual number of people trading the cryptocurrency — especially as more investors dip into the world of cryptocurrencies, and the value of bitcoin punches past the $4, 000 mark. Maybe lots of bitcoin traders didn’t realize the government expects to collect tax on their digital earnings, or perhaps some thought they’d be able to get away with stockpiling bitcoin thanks to the perception that the cryptocurrency is largely anonymous. “The purpose of this acquisition is to help us trace the movement of money through the bitcoin economy, ” a section of the contract reads. The Daily Beast obtained the document through the Freedom of Information Act. The contractor in this case is Chainalysis, a startup offering its “Reactor” tool to visualize, track, and analyze bitcoin transactions. Chainalysis’ users include law enforcement agencies, banks, and regulatory entities. The software can follow bitcoin as it moves from one wallet to another, and eventually to an exchange where the bitcoin user will likely cash out into dollars or another currency. This is the point law enforcement could issue a subpoena to the exchange and figure out who is really behind the bitcoin. Read more of this story at Slashdot.