On 11/20/2016 12:54 AM, grarpamp wrote:

https://yro.slashdot.org/story/16/11/18/2146221/irs-demands-identities-of-al... http://motherboard.vice.com/read/irs-demands-identities-of-all-coinbase-trad... https://www.documentcloud.org/documents/3222198-Petition-for-Coinbase-Trader... https://twitter.com/zerohedge/status/799401350824132608 https://www.documentcloud.org/documents/3222199-Memorandum-in-Support-of-Pet...

In bitcoin-related investigations, authorities will often follow the digital trail of an illegal transaction or suspicious user back to a specific account at a bitcoin trading company. From here, investigators will likely subpoena the company for records about that particular user, so they can then properly identify the person suspected of a crime. The Internal Revenue Service, however, has taken a different approach. Instead of asking for data relating to specific individuals suspected of a crime, it has demanded bitcoin trading site Coinbase to provide the identities of all of the firm's U.S. customers who made transactions over a three year period, because there is a chance they are avoiding paying taxes on their bitcoin reserves.

Some people jus' gotta learn OpSec that hard way, I guess :( <SNIP>

http://bitcoin-brokers.org/, if its still operating, can be an important element in a thorough trade-craft of financial privacy. They act as brokers to enable non-AML/KYC purchase of bitcoin. Sellers escrow their bitcoin with the broker. Buyers deposit cash into seller's bank account at a branch teller, acquire and present proof of payment, via broker, to the seller. Assuming no dispute, broker releases bitcoins to buyer minus a reasonable commission. Because broker never touches any fiat they aren't technically an exchanger. Seller pays no commission (last time I checked) but is not anon to buyer (and of course broker). On Sat, Nov 19, 2016 at 11:54 PM, grarpamp wrote:

https://yro.slashdot.org/story/16/11/18/2146221/irs- demands-identities-of-all-us-coinbase-traders-over-three-year-period http://motherboard.vice.com/read/irs-demands-identities- of-all-coinbase-traders-over-two-year-period https://www.documentcloud.org/documents/3222198-Petition- for-Coinbase-Trader-Identities.html https://twitter.com/zerohedge/status/799401350824132608 https://www.documentcloud.org/documents/3222199-Memorandum- in-Support-of-Petition-for-Coinbase.html

In bitcoin-related investigations, authorities will often follow the digital trail of an illegal transaction or suspicious user back to a specific account at a bitcoin trading company. From here, investigators will likely subpoena the company for records about that particular user, so they can then properly identify the person suspected of a crime. The Internal Revenue Service, however, has taken a different approach. Instead of asking for data relating to specific individuals suspected of a crime, it has demanded bitcoin trading site Coinbase to provide the identities of all of the firm's U.S. customers who made transactions over a three year period, because there is a chance they are avoiding paying taxes on their bitcoin reserves. Coinbase has a total of millions of customers. According to court filings, which were first flagged by financial blogger Zerohedge on Twitter, the IRS has launched an investigation to determine the correct amount of tax that those who use virtual currencies such as bitcoin are obligated to pay. But according to the documents, the IRS is asking for the identities of any U.S. Coinbase customer who transferred crypto-currency with the service between 2013 and 2015. "The John Does whose identities are sought by the summons are United States persons who, at any time during the period January 1, 2013, through December 31, 2015, conducted transactions in a convertible virtual currency," reads a memorandum written by Department of Justice attorneys and filed on Thursday, November 17.