There are some Bitcoin criminal cases in the world. Bitcoin technology is based on blockchain technology and provides an attractive option for cybercriminals. The operation of Bitcoin is as a decentralized currency. Therefore, people can make transactions without the presence of intermediaries such as banks or other financial institutions.
Bitcoin Criminal Cases
The lack of intermediaries makes Bitcoin users gain anonymity and an impenetrable level of confidentiality from third-party interference. The following are the example of Bitcoin criminal cases in the world.
Cases of Drugs Trafficking Silk Road
Rose Ulbricht is the inventor of the Silk Road. it is an underground digital marketing platform that facilitates the sale of illegal drugs. He was sentenced to lifetime prison in February 2015. As a hidden platform for illegal drug sales transactions in the dark web, Silk Road was worth 1 billion US dollars. It uses Bitcoin as the virtual currency in its transactions.
Fraud Cases Ponzi Trendon Shavers Scheme
In September 2015, an American citizen, Trendon Shavers was found guilty after fraud through a Ponzi scheme worth 150 million US dollars. Shaver’s founded a Bitcoin stock exchange firm called ‘Bitcoin Saving and Trust’. It uses a Ponzi scheme as an investment to deceive the victims.
The Ponzi scheme is a fraud mode investment. It is the offender pays a profit to the investor in the form of the investor’s own money or the money that paid by the next investor. The case of Shaver’s became the first federal securities fraud case that involving Bitcoin.
Terrorist Case Bomber Alam Sutera Mall
In October 2015, the people of Indonesia were thrown by the Alam Sutera mall bombing. Leonard Wisnu Kumala, the bomber of Mall Alam Sutera reportedly threatened and extorted the mall’s management by requesting 100 Bitcoin coins. The Alam Sutera Mall responded by giving only 0.25 Bitcoin. Because of upset, Leonard laid down a bomb that eventually exploded in Alam Sutera’s women’s toilet in Alam Sutera Mall.
Bitcoin technology is based on blockchain technology and provides an attractive option for cybercriminals. The operation of Bitcoin is as a decentralized currency. Therefore, people can make transactions without the presence of intermediaries such as banks or other financial institutions.