An FBI internal report was recently leaked to the internet, raising concerns about the use of Bitcoin currency.
Bitcoin is an online currency that allows individuals to buy goods, sell goods, and exchange money anonymously.
This report, marked for Official Use Only but not marked classified, raises concerns about the fact that Bitcoin uses mainly a peer-to-peer network, with no central authority.
Financial transaction history records are not easy to obtain in those circumstances, which makes it difficult to track certain types of activity, criminal activity in particular.
Here is an excerpt from the article:
The FBI sees the anonymous Bitcoin payment network as an alarming haven for money laundering and other criminal activity — including as a tool for hackers to rip off fellow Bitcoin users.
That’s according to a new FBI internal report that leaked to the internet this week, which expresses concern about the difficulty of tracking the identify of anonymous Bitcoin users, while also unintentionally providing tips for Bitcoin users to remain more anonymous.
The report titled “Bitcoin Virtual Currency: Unique Features Present Distinct Challenges for Deterring Illicit Activity,” (.pdf) was published April 24 and is marked For Official Use Only (not actually classified), but was leaked to the internet on Wednesday.
In the document, the FBI notes that because Bitcoin combines cryptography and a peer-to-peer architecture to avoid a central authority, contrary to how digital currencies such as eGold and WebMoney operated, law enforcement agencies have more difficulty identifying suspicious users and obtaining transaction records.
About the Author: Brian Daly
From Ireland, the land of saints and scholars, and U2 :)
I have various interests and hobbies, but and most of them seem to be internet-related. Involved with computers and internet most of my career, and my very first computer was a 386, with a 20 Meg hard and 640 K RAM (huge in those days but dismal now). Those were the days when we built computers out of cast-iron :)
I now make my living full-time from the internet, working from home, writing for OnlinePaymentNews.com and other endeavors.
Brian can be reached at online payment news at email@example.com