The major reason why many countries have stayed away from Bitcoin is that the Satoshi currency can be used for illegal activities such as money laundering, terrorist financing, etc. Because of its renowned “anonymity” feature through the power of blockchain, Bitcoin has often been taunted as the “terrorist money”.
Another way to use Bitcoin illegally is through the Dark Web, it appears. Just now, a Scottish man was sentenced to 5 years of jail time, because he used Bitcoin to buy weapons through the Dark Web.
The person in question is David Mitchell, a 48-year old Scottish man, who purchased a 9mm handgun , a suppressor, some ammunition and a magazine for roughly the equivalent of 0.75 Bitcoin, or $2,750. Mr. Mitchell ordered the “package” to be delivered from the United States to Scotland, probably relying on the premise that any purchase with Bitcoin is untraceable.
However, with the help of the Organized Crime Partnership group, which formed just recently, the package was ceased. In its place, the group placed a “placebo” package that was to be sent directly to the address of Mr. Mitchell.
Once the package was in Mitchell’s house, the police arrested him. On January 14th, the Scottish man was sentenced to 5 years in jail. The more interesting part is that, according to press, Mitchell did not intend to actually use the weapons, but rather see if such a transaction can be completed successfully.
While there is really no evidence that Mitchell was actually going to use the weapons or hurt anyone, the point is that purchasing “items” with Bitcoin is nowhere near untraceable, especially with the constantly tightening regulations and laws coming in place.
Back in the autumn of 2018, it was reported that stolen Facebook accounts amount to $600 million in the Dark Web.