Continuing Enforcement Crackdown On DarkWeb Sites




Image from Shutterstock via CryptoCoin News


Joon Ian Wong
July 29, 2017

DoJ Press Release – July 26, 2017

BTC-e and Vinnick were indicted on 21 counts for operating an unlicensed money service business, money laundering, alleged hack of Mt. Gox, and related crimes. Vinnick also was indicted for stolen identities, facilitating drug trafficking, and helping to launder criminal proceeds from syndicates around the world.

The arrest of a Russian man named Alexander Vinnik in Greece on Wednesday could disrupt the operations of one of the world’s largest bitcoin exchanges, which is [allegedly] also a top money laundering destination for online criminals. Vinnik’s arrest could also help solve the mystery behind the 650,000 missing bitcoin from the infamous Mt. Gox bitcoin exchange in 2014.

The US Department of Justice has indicted Vinnik for money laundering and other financial crimes as the alleged operator of the cryptocurrency exchange BTC-E. The US Financial Crimes Network (FinCEN) has levied a $110 million fine on the firm that operates BTC-E, a company called Canton Business Corporation, and $12 million against Vinnik personally.

Research suggests that BTC-E could have been part
of a global ransomware laundering scheme

BTC-E has been a key hub in enabling global ransomware. Research by Google suggests that 95% of ransomware funds were liquidated through BTC-E. Google conducted the research with University of California San Diego, New York University, and the blockchain forensics startup Chainalysis. The Locky ransomware strain has earned $7.8 million since 2016.

BTC-E was also allegedly the place stolen bitcoins from the Mt. Gox exchange were cashed out. A new investigation by Wiz Security, a Japanese security firm that has long pursued the Mt. Gox case, suggests that 300,000 bitcoins stolen from Gox ffound their way to BTC-E. In today’s prices, that would amount to $780 million.

The BTC-E website is currently down, but the exchange claims this is due to unscheduled maintenance. “Will keep you updated. Sorry for the inconvenience,” it tweeted in English on July 25. On July 26, as news of Vinnik’s arrest broke, it tweeted in Russian that it expected to be up and running again within 10 days.



BTC-E Claims Alexander Vinnik Was Never Their Admin Employee,
Promises to Return Customer Funds

Cryptocoin News
Francisco Memoria

Recently, BTC-e’s domain went down and, shortly before, news of 38-year-old Alexander Vinnik’s arrest in Greece for laundering $4 billion of ill-gotten bitcoins broke. After putting the pieces together, and having suspicions confirmed by news outlets, the cryptocurrency community started to believe that Vinnik was BTC-e’s admin. A new forum post published by BTC-e rebuts Vinnik’s role in the exchange, and promises users their funds back. They posted:

In the current situation, if the service is not started before the end of August, then from September 1 we will start the process of refund. In the next 1-2 weeks, we will evaluate and publish information about how much money fell into the hands of the FBI and what amount of funds is available for return.

The post ends by stating that BTC-e always functioned on trust, and that “funds will be returned to everyone.” Near the end, it adds a note on Alexander Vinnik’s arrest, stating that the Russian “was never the head” of BTC-e, nor was he even employed at the exchange.

Various users noted that millions of dollars worth of bitcoin and ethereum have been moved from addresses believed to belong to BTC-e, possibly meaning that the exchange safeguarded funds, or that they were seized by authorities. Nonetheless, the exchange’s words were clear:

For all those who buried us, I will remind you that the service has always worked on trust and we are ready to answer for it. The funds will be returned to everyone!

Read article HERE.


I think I just choked on my sip of coffee.  I just checked the current price of one Bitcoin – today it is valued at $2,858.90 US Dollar. No matter how many times I gasp and mutter about this it still says the same thing–ONE–folks!

To put that into perspective: one troy ounce of gold is $ 1,272.76; platinum is selling for $ 941.50 an ounce; highest paying stock share Markel is an insurance holding company selling at $1,071.51; and a barrel of oil is $52.62 — all of them US dollars and today’s early prices.

One Bitcoin – which is air and numbers NO solid matter and backed by not one zippity doo-da legally binding guarantee, weight of precious metal, section of land, gem, or actual piece of artwork is worth more than any of those things I just listed.  Everything in total (except my laptop) in my bedroom is worth less than half that………Holy stupidity folks.

These people are more than likely “computer savvy” millennials but definitely lacking in real-time logic and common sense. However they get their actual physical dollars then convert it to airwave digits, someone is out REAL something to be able to have these “widgets of trendy stupidity.”

What happens when not if there is no more internet (thanks to their socialist demands) (no more personal savings or stock exchange funds again thanks to socialist agendas) no nothing except their physical bodies and whatever cash they can scrounge up?

Obviously, if there is a way to steal something no matter how securely locked away, there is a brain without moral compass and determined enough to “lift” it for their own purposes including air and numbers.

The worse part is that these people are so morally bankrupt and evil that they use this method to buy/sell everything–from slaves to body parts; solid to gas; betting gambit; every known “designer”, weed, or opiod drug; and every size, shape, and destructive capacity of weaponry known to man.

or so we have been told

So when I see some of these satan’s helpers closed and the people thrown in prison–all I can do is cheer and then laugh at those crying because they put their money and their greedy trust in NOTHING but air and numbers.


About Uriel

Retired educator and constitutionalist
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3 Responses to Continuing Enforcement Crackdown On DarkWeb Sites

  1. Pingback: HN&F | Continuing Enforcement Crackdown On DarkWeb Sites | Brittius

  2. SafeSpace says:

    Don’t know about you, but the entire premise of bitcoins sounds like a gigantic scam. Paper currency might prove to be vapor, true, but bitcoin STARTS OUT as vapor. There’s one born every minute….

  3. Uriel says:

    yep I agree and it seems Greed grows exponentially to stupidity.