Silk Road forums

Discussion => Newbie discussion => Topic started by: Dickens018 on February 28, 2013, 04:05 pm

Title: Bitinstant & Zipzap Tracking Users
Post by: Dickens018 on February 28, 2013, 04:05 pm
Note to SR Heros: You may wish to give this wider audience.

Note that within the past month, Bitinstant and Zipzap seem to have stopped allowing anonymous Bitcoin purchases.  A month ago I could
easily purchase Bitcoins anonymously by generating deposit slip and taking cash to Walmart, CVS and many other venues.  This has changed,
and the last time I tried to make a $200 purchase,  I got "Identity Error"from Zipzap,  and email requesting photo of Driver License to comply with money Laundering laws.   Their terms and privacy agreements also seem to have  changed to indicate they will track IP & ID,  IDs will be checked against various "terrorism" lists, and will compile statistical reports which will to be turned over to LE if they requested without notification of the targeted parties.  Since those laws only apply at the $10K level, this seems BS to me, but part of campaign to eliminate anonymous transactions. 

If there are any remaining ways to anonymously purchase Bitcoins from reputable dealer, please let me know.   Blockchain fed into these guys, so is also no longer private. 

What can be done?  I would love to hear ideas,  but only think I can come up with is to treat Bitcoins as investment (100% increase in months),  and use wire transfers in amounts of  $500 to $5000,  depending on your needs and financial condition.  A series of twenty $200 purchases over a year could raise flags,  but a single $4000 purchase looks like a simple investment transaction.  If possible, avoid spending all the money you put in, so it looks like investment.   This should give plausible cover to 99% of users. 

If ever questioned by LE,  tell them to discuss it will your lawyer.  Any decent lawyer can argue this was completely legal and  except for tax purposes,  you have no obligation to describe your private investments.   As for any Bitcoins used for private purchases,   your lawyer could
suggest that from time to time you like to gamble,  mostly with negative results,  just like the most gamblers. 

Comments welcome.
Title: Re: Bitinstant & Zipzap Tracking Users
Post by: powerndknowledge on February 28, 2013, 04:28 pm
i didn't get asked to get tracked purchasing 150$ is it only 200$?
Title: Re: Bitinstant & Zipzap Tracking Users
Post by: Dickens018 on February 28, 2013, 11:54 pm
I think its any amount for me in spite of only having one other amount.

Did you use real email, name and DOB?
I have no idea why I got flagged.  I have normal american name with no history or record of anything.

From Bitinstant.com website.
In order for you to make a Transaction payment, we need from you your: (i) first name; (ii) last name; (iii) mobile telephone number, together with an SMS confirmation of the same; and (iv) the last four digits of your social security number. If you wish to make a Transaction that is in excess of $1,000.00 or Transactions that, in a single day, exceed $1,000.00 in the aggregate, then we will also need from you: (v) a copy of government-issued photo ID; and (vi) a copy of a utility bill. The purpose for collecting this information is to maintain BitInstant compliance with applicable laws that require BitInstant to verify that its Services are not being used for illegal purposes to, for example, facilitate in money laundering or the funding of terrorism.

While we will accept Transaction payments for only those Merchants and in those amounts designated by you, from time to time, we want to be sure that you have a pre-existing relationship (i.e. the Customer Merchant Agreement) with the Merchant from whom we are taking a payment. To that end, you allow us to obtain all information that a Merchant may maintain concerning you, so that we can be sure that you (i) have a relationship with the Merchant; and (ii) your identification information provided to us matches that that you have provided to the Merchant. We need this ability to protect you, us and Merchants from fraud and in order to comply with applicable laws.

YOU EXPRESSLY GRANT THE RIGHT TO COLLECT, STORE AND DISCLOSE ALL NON-PUBLIC PERSONAL INFORMATION IDENTIFIED ABOVE, TOGETHER WITH TRANSACTION AMOUNTS AND MERCHANT IDENTIFICATION AS WELL AS INFORMATION IN POSSESION OF MERCHANTS IN ORDER TO FACILITATE IN BITINSTANT'S SUPPLY OF THE SERVICES AND IN ORDER TO COMPLY WITH APPLICABLE LAWS.

BY ACCEPTING THIS AGREEMENT, YOU REPRESENT THAT BITINSTANT IS AUTHORIZED COLLECT, STORE AND DISCLOSE THE INFORMATION IN THIS APPLICATION AND INFORMATION ABOUT YOU PERSONALLY, INCLUDING BY REQUESTING REPORTS FROM CONSUMER REPORTING AGENCIES IN ORDER TO ASSESS YOUR SUITABILITY TO USE THE SERVICES AND THE ONGOING RELATIONSHIP WITH BITINSTANT.

BitInstant reserves the right to carry out a background check on you.

Its gone from Anonymous for small amounts, to We collect your information,  may run background checks
and will disclose this info to unknown agencies.  I suspect that even if you pass the ID test, they still keep info on you
that could be disclosed for any reason. 
 This seems very invasive to me,  and I can think of no reason do business with them.
Title: Re: Bitinstant & Zipzap Tracking Users
Post by: patswin on March 01, 2013, 12:21 am
Wow, this is pretty scary stuff and would certainly be the end to my using them.