Bitcoin (BTCUSD)

[rudik]

Not only Bitcoin

In March 2013, the NSA gave an update on intelligence collection efforts using MONKEYROCKET, which targeted Bitcoin and LibertyReserve, “2 of the top 3 virtual currencies” of their interest.

LibertyReserve is regarded as a predecessor to Bitcoin, but according to The Intercept, was created with criminal intent in mind. A Costa Rica-based digital currency service, LibertyReserve was founded by Arthur Budovsky, who was eventually arrested in connection with a $6 bln money launderingoperation, resulting in a 20 year conviction.

Five months after Liberty Reserve was shut down, US federal agents apprehended Ross Ulbricht, the man behind the world’s largest darkweb marketplace, Silk Road, where transactions were conducted in Bitcoin.

Snowden’s files don’t give much information about whether the NSA actually participated in the FBI’s Silk Road investigation. However, Ulbricht himself claimed that all evidence against him was obtained by the NSA in violation of the Fourth Amendment, and should be deemed inadmissible to his trial. The prosecution dismissed his theory.

The monitoring of cryptocurrencies by government surveillance agencies may come as a cause for concern for those who value cryptocurrency for its anonymity and decentralized nature.