Not only did the person being discussed in the article basically launder money and move a large amount of it, but they did so pretty unsneakily, tripped a fraud alert and basically made all the money from Commercial Piracy.
These are the kind of idiots that real content creators try to use to justify their stupidity, lack of distribution, or otherwise to justify making life harder for their loyal paying customers somehow.
Many people read about pirates going to jail and think they could be in for the same thing if they download pirated stuff. It’s an idea the MPAA and RIAA have falsely promoted for years. The truth is, they will only go after you if you try to make money on the stuff you downloaded it. That’s what this guy was doing.
They can’t do anything against individuals downloading things for their own use. If they tried, half the population would be up for charges and the economy would collapse.
There's really nothing weird or surprising about Paypal helping out the authorities. They develop and sell sweepnet software to authorities and intelligence agencies all over the world through their spinoff Palantir. They are not the 'good' guys, never were.
Paypal was required by law to report him, just like all of your banks are required to report you too. It's not like Paypal went out of their way to actively screw someone over using their platform for no reason. This is silly...
"It's not like Paypal went out of their way to actively screw someone over using their platform for no reason."
Um, that happens like every day. Do some searches and read the stories of Paypal scrwing people for no reason. Not hard to find.
Look, I know I have the "Piracy is bad, mkay?" flair on here, but I don't really have anything against people who go about just sharing files. You shouldn't feel sorry for this guy, though. He's not just Joe Average Torrenter getting sued on dubious evidence, or even some topsite operator that got arrested for trading films. He's a commercial pirate, making millions of dollars off of other people's work. If you were writing the copyright chapter of a law textbook, you'd probably want to stick this guy's face in it with a massive caption reading something like, "This is why copyright law exists".
Even if you don't particularly give a shit about how much money the author makes, or you think publishers are somehow worse than commercial pirates, you still should hate this guy. Commercial piracy attracts legal attention in ways individuals cannot. The music industry didn't go and sue thousands of Limewire users because they thought it'd be fun. They did it because a bunch of hot Silicon Valley startups were commercializing copyright infringement in a way that made it difficult to sue them. Commercial piracy damages file sharing.
100% agree, it's one thing to pirate for yourself but when you start making money off of someone else's work it's just a dick move and draws unneeded attention to the entire scene.
The common argument in favor of piracy is that the company isn't actually losing any money because a lot of the time the person pirating would never have paid for the content anyway if it wasn't available to grab for free, maybe because they can't afford it or don't think it's worth the money or whatever. But when you start selling it and people pay for it the company actually does lose money because those are people that are actually willing to pay for the content, you can actually determine a dollar amount that the company lost because that's the dollar amount that someone else gained
Except it’s a fake SSN so it isn’t even real. It would be the same as if some mistyped their own. PayPal didn’t seem to care it was a social security number from 1901 with the wrong details about every other pieces of information. So to call that identity theft is a long shot
Maybe a payer wrote some stupid note along with the payments. Or a bunch of payments came in on the same day or within a period of time it couldve also triggered a money laundering tripwire. Everytime ive tried to pull or deposit more then 10000 in a day from my bank account i have to fill out a form and they ask me about my job, social security #,...
With sums from 10k and up it's totally understandable. But PayPal is known to be wayyyy ... over-eager. Even for much smaller amounts of money.
I will always remember that computer magazine article about a guy that almost got ruined by them. He was selling Nintendo Wiis around Christmas when PayPal suddenly froze his account. They wanted to know details about where he got all those Wiis from he's selling, because it was sold out everywhere else. (And it was Paypal that wanted to know that - not the police or IRS.) Due to the frozen account, money from buyers was still coming in, but he couldn't pay his dealer nor refund his customers. The magazine people tried to contact PayPal but got told there's nothing PP can do. In the end they unfroze his account after the full 6 months holding time. By that time some 5-digit amount accumulated (remember, when they froze the account it was amidst a Christmas sale). He had to refund most of the money to those buyers he couldn't deliver to, though.
A bit of Googleing unveiled lots of other cases where PayPal clearly overstepped their boundaries as a payment provider. Sure, if everything goes smooth, it's a very convenient thing. But as soon as there's only a slight problem, PayPal goes crazy. Especially if you are a seller.
That's retarded. Federal law mandated that they report money laundering .otherwise they lose their ability to operate . The fuck did you expect them to do when they realized you were committing major crimes on their service ,which they will be held accountable for if they don't report you ?
Paypal didn't report the purchasing of crypto, they reported the guy for being suspicious.
He had withdrawn a few million from paypal and stripe and transferred it into a number of accounts that belonged to him as an individual and a bunch of crypto-currency, but it had nothing to do with why paypal reported him.
Especially seeing as they reported him in like 2013 and most crypto-currencies didn't exist then.
The title is essentially click bait and the article is pretty much copy and pasted from the original torrent freak article, except they missed off half of it at least.
If you have a business or llc it flies under the radar. Regular people, the occasional transaction could be a house repair or car purchase. Several dozen a week, they may look at you. Thats why Walter White bought a car wash. Easy way to deposit large sums of money.
Yes. 9,900 dollars isn't reported. I dont remember exactly when, but some banks decided to report more than 10,000 a week to personal accounts.
One way around it is to open accounts in all your relatives names and be a cosigner. If its spread over several accounts, it doesn't trigger a report.
If you're a signatory on an account, your name isn't on the account. Yes, if the bank really digs they can find you are the only one depositing and withdrawing money. Don't use the same bank for all the accounts and you're pretty obscure to the regularory offices that might be looking for you.
The IRS just wants tax money, so even if you sell drugs but report the income, they don't care. The DEA is just looking for drug money, so spreading it out makes it look like you aren't making dealer money. The ATF is just worried about you selling guns or booze without the proper permits. They don't talk to each other over small time money.
OK well the underlying problem with the crypto here is he stored it on Coinbase. They are bank like any other and will comply with any government request. Why the fuck didn't this guy put those coins on a hardware wallet?!? A $50 ledger wallet could have saved him $500,000 of his crypto for his defense. Not too smart right there.
You do realise that DHS had exact copies of his bank statements knowing exactly how much money he had and where he spent it. They and IRS would not stop until they account for it all. And therefore would grill him until they recover every cent. If it was in a hardware wallet they would demand it and if he didn't hand it over they would stick him in prison for the rest of his life. Its a lose lose no matter what in his situation
Then they lock him away. Once he gets out they put massive surveillance on the man till he reveals the wallet or he can never touch it again. No way they would let a sum that big go missing.
But of course that would have been better then him storing it on coinbase lol
You are saying after sticking him in prison for 15 years they would use their government power to put massive surveillance on him just tp find a shitty little million? Money that he might have let someone else spend in those 15 years or else. I doubt they care for the money, they care a lot mor about scaring people into being law abiding citizens which they already achieved at that point.
I don't know about that dude, recovering a million is a big score for these agencies you can't deny that. Maybe i am over exagerating but you never know 1 million is not just chump change. They went after all the assets of that Dark net market owner after he got busted, why wouldn't they do it here? Its their job