Silk Road forums
Discussion => Newbie discussion => Topic started by: hamburgerman on February 14, 2013, 03:46 pm
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Hamburger
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The problem is not covering your illegal activity, but proving that the money came from legal business. If you are a school teacher and suddenly come up with a million dollars like you said, you ll have to provide some convincing evidence that you legally got the money. That's what money laundry is about. Not that I am familiar with it, some big vendors here can be much more specific, although I doubt they will.
For the first part, MtGox sucks because it's a pain in the ass to get verified and they can freeze your money if you use tor, or if the money is too much or whatever they think seems suspicious, which is unacceptable to deal with for a service that I pay.
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Can someone please explain what the fear is with using large exchanges even if you have to get verified to pull out large amounts of money. From the threads i read people are afraid of banks reporting the deposits but who really cares? If you get a SAR filled on you the burden is still on the government to prove that your money came from illegal means. Lets say you withdrawal 15K from one of the major exchanges into your genuine bank account what can the government do? They can try to get the records for the exchange that will only show that you cashed in bitcoins on a certain day. They can not track the bitcoins nearly at all if they went through any tumbler service and you are crazy if you think any government agency has a bunch of experts sitting around to try to track your bitcoin addresses around.
So please where does the fear lie? With bitcoins not being centrally controlled there is no "follow the money" or "follow the paper trail" that exists in other currencies. I just want to see what people are afraid of? Even if you are some school teacher and suddenly withdrawal a million dollars from bitcoins the burden is not on you so how do you think the government can prove in the least that the bitcoins were from criminal proceeds? The exchange is a dead end. I really think people's fear are unfounded but am open to listen.
You dont want a paper trail. If they decided to start questioning you about it, they are going to want to go in to every detail.
How did you acquire bitcoins? What date? How much did you pay? blah..blah.. Then you could slip up, they'll know you are lieing and they'll do everything in their power to prove it.
I mean, it's probably not as big a deal as people say, but its better to be safe than sorry. If I was a vendor I know I would rather nobody knew about me having BTC and such and just launder my money through a business perceived legitimate.
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I believe the whole point of using bitcoin is to keep the governments out of your pocket. Why would you want to open that can of worms? Its the TAX and the scrutiny you'll be put under. I would think that 98% of bitcoin transactions are illegal drug purchases. I read that bitcoin is supported by SR and the 22 million it did. The govt. don't like you messing with their money so its better to fly under the radar!