Wat? They had cold storage, the cops just used a $5 wrench attack, kind of. Basically they stashed their profits from the operation to BTC, then just held it.
Plus, these guys were (mentally) able to keep to those bitcoin for 100x of growth. I would guess they are likely to have more from other, legal sources, which potentially makes them millionaires. Why (indefenitely) stay in prison with a billion when you can go free with a million.
> Plus, these guys were (mentally) able to keep to those bitcoin for 100x of growth.
Given the time, I'd wager growth was completely fortuitous. They held it for the same reason I hold mine. Conversion requires either a source willing to exchange large amounts of cash for crypto, which tends to be impractical. Converting to cash through conventional sources (legal exchanges), necessarily involve either large bank deposits or, in cases like Coinbase or Kraken, conversions to cash are directly reported to IRS. I only say this because I'm in the same situation, except I didn't obtain it illegally.
Germany has very lax sentencing. for $2 billion I would just do the time. I am still guessing it was unprotected file on desktop. Probably the criminals kept the only copy of keys on a thumb drive , which when confiscated meant they had no choice but to comply.
You think you can just get out of prison and use the money? They will be watching you and anything you buy with it or any cash you convert it to will be seized again. Might as well give it up for reduced sentence.
There aren't any nice places without extradition treaties where you won't be murdered by the people in charge, police, criminal gangs, et al. Or otherwise de facto forced to turn over the money for protection, after which you'll be discarded if you're lucky (and disappeared for convenience if you're not).
So I am unclear on this. In Germany or the US, if you rob a bank, hide the money, get arrested, and serve a X year sentence, what happens when you are released? Could you use the money? You have already served for the crime. I suppose they could keep some criminal charges in reserve? If nothing else, eventually the statute of limitations would kick in where the money is fair game? Just be sure to declare it on your taxes, lest they get you like Capone.
IANAL but I suspect this is the kind of thing civil forfeiture is originally intended for. You would have to sue in court and prove the cash was obtained through legal means.
The 5$ wrench is just a simple example of social engineering. No amount of cryptography will help you if the guy holding the keys can be talked/pressured into handing them over.
I wouldn't say all social engineering is a $5 wrench attack. A $5 wrench attack is having physical access to the person and using physical means (handcuffs, prison cells, guns) to convince them to comply.
You’re taking it way too literally. The joke is that all this fancy-pants cryptography is meaningless when the nerds that employ it will mess their britches at the first whiff of real consequence.
I’d also add that a lot of the rhetoric in the cryptocurrency world is based on this very board game-y mentality where it’s like a contest to set the rules up so you win, which completely misses that in the real-world people just choose not to follow your preferred rules.
No police force says “oh, you have impregnable cryptography and a 42 character password, well, we only have one prisoner slot so you can go free now”.
