Dog Finds Silk Road Hackers’ 1500 BTC – 266

There is still plenty of fud going Around though surrounding cryptocurrency In general what is interesting is in the Past I've always talked about really Bitcoin becoming a battle between Nations right it's a it's a battle Between Banks but then it becomes a Battle between nations and I think we Are starting to see this kind of battle Start to play out surrounding silicon Primarily right because it's not so much Surrounding Bitcoin specifically but Because of the infrastructure Surrounding Bitcoin it's starting to be A Securities concern at a national level And we can see that here with us Officials saying they're worried a Chinese owned Bitcoin mine in Wyoming Will pose a national security threat This is really interesting Pentagon Officials monitoring a Bitcoin operation In Wyoming that sits across from a Microsoft Data Center and a nearby Military base are worried that owners Ties to China could pose a national Security threat per the New York Times Microsoft believed the location could Allow the Chinese government to quote Pursue full spectrum intelligence Collections operations end quote Directed at the data center and the Francis E Warren Air Force Base which Houses Icbms the crypto mining operation first

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Came under the US government's purview After a team at Microsoft submitted a Report to the community on foreign Investment in August 22 the team Believed the mining operation had the Potential to collect information from The data center which supports the Operational needs of the Pentagon the Times reported quote Microsoft has no Direct indications of malicious Activities by The Entity and quote Microsoft wrote per the times however Pending further Discovery we suggest the Possibility that the computing power of An industrial level crypto mining Operation along with the presence of an Unidentified number of Chinese Nationals In direct proximity to Microsoft's Data Center and one of three strategic Missile bases in the US provides Significant threat vectors now here's The question that I have because if we Are talking about cryptocurrency mining From the perspective of Bitcoin the Compute power doesn't seem to be that Much of a threat in my humble opinion Because you have application specific Integrated circuits I think there would Be more of a threat in general right if We had more general comp cute meaning CPU GPU that sort of thing so if you had A GPU mining Farm or a significant Amount there then I would definitely be A a little bit more concerned

Surrounding the type of equipment but of Course you know with that close Proximity I'm not sure exactly what they Are alluding to here I mean other than Of course they're sharing the same same Backends right that sort of thing so There could be attack vectors from there Less secure as far as the the locality Goes there because they're probably Running off the same backbone Essentially that's where I think what do You guys think is there a threat there I Think the biggest threat of course is Utilizing that power for the profits of The Chinese government right and it's a Really interesting concept here but we Do know that a lot of companies within China don't act outside of government Rulings with meaning that the Chinese Government is fully aware and approves Every movement that specific companies Within China make because of the way That the government is basically formed And so if there was approval by that Company to operate within the US on the Flip side still of course all of the Bans for Bitcoin mining in China what is The Strategic play from that perspective Is it basically gain wealth through Mining Bitcoin while utilizing of course Power uh of basically a competitor a Competing Nation like the United States Does that mean that you have you're Basically able to utilize power or a

Grid from a different nation state but Then profit off of it how much can the US really regulate that and what what Are the other attack factors here it Says in 2021 China banned the resource Intensive practice of Bitcoin mining Which is what we just discussed Businesses in the cryptocurrency market Scrambled to establish themselves in Other countries including the US the Times identified identif IED mines in 12 States that were owned by Chinese Nationals per the outlet some had ties To the Chinese government some did not And others could not be easily traced of Course I I I don't think that some did Not I think pretty much every company That it has ties to the Chinese Government if they're uh from China Almost 100% guaranteed the cheyen Wyoming Center was such one such mine Per the times the times reported that The mining oper operation is linked to Five different companies with one Company bit origin limited previously Registered as a pork Processing Company In the Cayman Islands leing meing I Think I said that correct the president Of bit origin limited said that the Microsoft data center or the nearby Military base had nothing to do with why The area was chosen instead the mine was Placed there because a local utility Company agreed to work with bit origin

Which totally makes sense quote even Though we are a Microsoft neighbor and a Couple of miles from the base without Powering it is nothing or without power Is nothing the business cannot succeed He told the times officials who spoke With the times cited concerns that the Mines which use an immense amount of Electricity in their operations would be Used to purposefully overwhelm Electrical grids to cause planned Blackouts and complete other cyber Attacks so I guess this is the angle That they're taking is that because of The amount of power that a Bitcoin mine Utilizes they could potentially suck up A bunch of the power and shut down the Grid um if you are close to a military Base as well as close to the Microsoft Data center I would assume the Microsoft Data center at this Point's utilizing a Lot more power than of course this Chinese mining Farm just you know off of Based off of the amount of power that Azure cloud is pushing out at this point I I would assume that they're way above What a a Bitcoin mining Farm is that Seems like a very tough practice to I Mean if you shut it down right you're Kind of hurting yourself as far as You're not uh maintaining profitability I guess there would be some sort of sub Uh subsidizing act by the Chinese Government to help do that I don't see

That being a big deal now cyber attacks As far as being able to once again Leverage that backbone or the same Backbone That Base utilizes as well as Microsoft and be able to somehow do some Sort of attack via compute power Possibly but if it is just a Bitcoin Mining farm that compute power is not Going to translate over to anything like Even a Brute Force attack wouldn't be Something that a Bitcoin mining Asic is Going to be capable of at least you know To my knowledge because we would have to Point out that bit main does manufacture These things is there some sort of back Door some sort of other purpose for These miners well at that point you know We're we're all in trouble and we should Have remained Asic resistant right us Officials have expressed growing concern That the Chinese government is Attempting to Target and disrupt US Military operations in July the times Reported military officials identified Chinese malware that could disrupt power Water and Communications to military Bases an interesting article I do think That overall there will be a fight for Power and and uh control over Cryptocurrency obviously volume control Um over Bitcoin will be a big play here And I think everybody obviously black Rock's already seeing this happen I Think we even saw some people with black

Rock saying that they would have Something like ridiculous like $31 Million Bitcoin or some craziness after ETFs are deployed I don't think I Necessarily agree with that I still Don't understand black Rock's uh Strategy here other than the fact that I Think that black rock sees that Bitcoin's here to stay and the more Bitcoin you control probably the more Industry you will control in the future Right the more e like basically the more Powerful you'll be Economically and that will be you know a Factor that does bring up the fact of Course with me like does Bitcoin really Solve any of the problems that we're Trying to solve if someone buys up a Majority of the Bitcoin I don't know is There something better we could do down The line are there different things Different different cryptocurrencies They'll eventually come along that solve This issue um it is what it is right at The end of the day it still becomes a Supply and demand issue the only benefit To bitcoin over the rest is that it's Transparent which is definitely going to Help I think but you even if it's Transparent and one person owns a Majority of it then it still has the Same problems that we have today only Difference being as opposed to it all Being printed it's dependent on how much

You already control anyways just some Thoughts now there's an interesting Thing happening with I think the Lightning Network here well we'll talk About that first let's talk about the S Silk Road hacker who accidentally showed Feds $70 million worth of bitcoin on his Laptop before being arrested police body Cam footage shows the Silk Road hacker Opening up a laptop with thousands of Bitcoin on it in front of federal Investigators not realizing he was Incriminating himself James zong was was Charged by the US government last year For stealing more than 50,000 Bitcoin From the illicit Online Marketplace Silk Road in 2012 I mean it's kind of funny That you have basically somebody getting In trouble for stealing from people that Were doing illegal activities in general In 2019 after his house was broken into Zong called the police to inform them Despite having mountains of Incriminating evidence laying around in His home zong revealed over the phone That he was an investor in Bitcoin Putting himself on the radar of Investigators at the same time the IRS Criminal investigation unit was Painstakingly trying to solve the Silk Road hack of 2013 analyzing details of Its onchain paper trail ultimately an Investigator from the blockchain Analytics firm chain analysis who was

Hired by the government noticed that an Address associated with the Silk Road Hacker accidentally performed kyc Routine with a crypto exchange revealing Zong's name and home address months After after his 911 call with help from Sha McGruder McGruder there we go CEO of A cyber intelligence company block trace The IRS created a plan to enter zong's Home and talk to him under the offices Of investigating the break and Enter That he had reported earlier once inside Zong made the grave mistake of telling Investigators he was a Bitcoin OG and That he had 1,500 Bitcoins sitting on One lap top alone which he then Proceeded to show investigators on Camera says McGruder on of block Trace Quote low and behold he had 60 or 70 Million worth of Bitcoins right there Next to us it was also revealed that Zong was one of the earliest Contributors to the development of Bitcoin and routinely posted advice and Suggestions on online forums for how to Improve the Bitcoin protocol Investigators returned the following day Still under the pre text that they were Helping him but instead executed a Search warrant using a dog trained to Find computer hardware the agents found The wallets with the addresses to the 50,000 Bitcoin once worth over3 billion Us sitting in a safe buried in concrete

Underneath zong's basement floor zong Was sentenced to one year and one day in Prison for his role in the Silk Road Hacking incident absolutely insane I I Don't even think I need to talk about I Don't have anything to say I'm at a loss For words on this in general someone That apparently has like pretty high Level intelligence as far as working on Bitcoin being involved for that long Etc You know ends up in a position where he He hacks Silk Road which are bad guys in The first place I suppose and then Stores that and then kycs himself it It's just insanity and it goes to show You that any of us can make these Mistakes over and over again too and I'm Not saying that you know you should Break the law Etc and that is the reason Why you should be careful with kyc but You should be careful with kyc for a lot Of other reasons first of all it's your Right to privacy you should maintain That your Sovereign right to basically Maintain your own keys and Etc but you Know at the end of the day like there Are other things like going on here that You should pay attention to essentially Is my point and even the most Intelligent of people that that that Have been in Bitcoin for a long time Make kind of silly mistakes but it's Crazy to me too that he was even Participating within this in the first

Place doesn't seem like a very strong Sentence a year and a day doesn't seem That crazy I'm sure there are some plea Deals that are going on there maybe some Help to reveal you know more people that Were utilizing Silk Road is what I would Assume is going on here I'd like to hear Yall thoughts and opinions in the Comment section below also you can get Around a lot of this by like frankly Memorizing your seed phrase and just Destroying all the Evidence and there we go put on a list It's okay I've probably been on a list For a long time uh that is uh not Something that you should do to commit Illegal activities but to protect your Cryptocurrency from potential hackers Etc Okay that dog must be an amazing Dude Too like that dog smelled under concrete Bro and then pulled that Out that's amazing man thanks for Checking out this clip from the crypto Mining show you can check out the full Episode here or more crypto content down Here also I'd like you to check out my Locals page at son ofate tech. Locals.com where you can become a member For free or choose to be a $5 month Supporter that unlocks additional Content

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