Laundering Online Banking To Bitcoin

[ResultingInDeath]

Hi guys. So this guy my friend knows was wondering how he would go about moving money from an online bank account to Bitcoin (for use on SR). Does anyone have any knowledge on this? Of course he was talking about using VPN on public Wi-Fi but his main questions are how does this work? Would he login to the financial institution and then do an electronic transfer to a bitcoin exchange or...? How easy is it to buy Bitcoin with online bank details? What exchange would you recommend he use? Any input is appreciated.

[ResultingInDeath]

Originally Posted by 1337

Make sure you transfer the BTC to another wallet before you transfer to your SR wallet. You can use instawallet for this. Make sure you bookmark your wallet URL, if you lose it, you lose your money.

I use get-bitcoin legitmiately, but it does have a bank transfer option like you're talking about. Get-bitcoin also works nicely with tor and proxies.

Thank you very much for your prompt reply. I have a starting point now. I am wondering how long the Bank-->>Get-Bitcoin.com transfer process usually takes? Is this something that transfers instantly or does it take a few days like Paypal for instance?

[La Paz]

Mt. Gox is the biggest online exchanger. Remember though, there is a big difference between having login details and having the ability to transfer funds. Most online banks require further security measures to transfer to a new account, eg Santander sends a text to a pre registered phone number with a confirmation code.

EDIT: having read the above post, nearly all bank transfers take 3-5 working days.

[ResultingInDeath]

Originally Posted by La Paz

Mt. Gox is the biggest online exchanger. Remember though, there is a big difference between having login details and having the ability to transfer funds. Most online banks require further security measures to transfer to a new account, eg Santander sends a text to a pre registered phone number with a confirmation code.

EDIT: having read the above post, nearly all bank transfers take 3-5 working days.

I love this board. You guys are great. When you say "online banks" are you referring to using online banking or like Metabank? The bank in question has branches all around the US if that matters. Im trying to grasp this...are you saying that just because I register with Mt. Gox and am able to login doesn't mean that they will accept my wire transfer or that the bank might not approve the transfer?


Edit: Ok re-read that I am understanding you right when you say just because I am able to login to the bank dosn't mean I will be able to transfer funds?

[ResultingInDeath]

Originally Posted by 1337

Make sure you transfer the BTC to another wallet before you transfer to your SR wallet. You can use instawallet for this. Make sure you bookmark your wallet URL, if you lose it, you lose your money.

I use get-bitcoin legitmiately, but it does have a bank transfer option like you're talking about. Get-bitcoin also works nicely with tor and proxies.

I am new to Bitcoin so I am trying to understand the concept. The software itself acts as a wallet am I right or...? So do I buy from Get-Bitcoin then send it to my wallet(the software?) then to Instawallet -->>SR?

Edit: I just tried to use GetBitcoin entering fake details 1337 and it says as soon as we recieve payment we will process your order. It dosnt say how to send payment though! Strange. Any ideas?

[ResultingInDeath]

Originally Posted by 1337

If you have a wallet on your computer, you can use that instead of instawallet. You just don't want your bank transaction being tied to an SR wallet. I'm not really sure about bank transfers, but when I select bank deposits, it tells me all the requisite information on the confirmation page (the page with your order number).

So the software isnt necessary? He can transfer from the exchange right to his instawallet page? When he goes to enter the amount etc. on GetBitcoin where it says "Your Bitcoin Address"?

[ResultingInDeath]

Originally Posted by 1337

Your instawallet is like the software wallet you have on your computer, just disposable and not imbedded in your computer. I always went get-bitcoin > instawallet > SR wallet. When you get an instawallet URL, you look on the page for your hexadecimal wallet address. That is the address you need for the exchanger. On SR, the wallet address is on the "Account" page.

Consider me enlightened. I have a clear understanding of how to explain it to him now. Thanks for all your help.

[La Paz]

When I say online banks I mean the online sections of normal banks ie Bank of America, HSBC, Santander, regular highstreet banks that have online banking features. From my limited experience there are extra security measures when transferring money to a new account and these will vary from bank to bank, but I think you will need more information on the person than just their log in details. It is possible but not that easy. It is not like paypal where you just log in and do whatever you want.

[MrSinister]

Isn't it always a good habit to get a Mixer involved in the process? I was reading up on Bitcoins not long ago out of random-interest sake and found that apparently the transaction chain of coins could be traced which could in theory, lead investigators along a path from your dirty account to your clean account and find out your true identity. The mixer is meant to exchange your coins for others breaking the chain of transaction IDs and therefore losing the investigator.

To be honest I don't know enough about Bitcoins to say one thing or the other with too much certainty.

[ResultingInDeath]

Originally Posted by La Paz

When I say online banks I mean the online sections of normal banks ie Bank of America, HSBC, Santander, regular highstreet banks that have online banking features. From my limited experience there are extra security measures when transferring money to a new account and these will vary from bank to bank, but I think you will need more information on the person than just their log in details. It is possible but not that easy. It is not like paypal where you just log in and do whatever you want.

You were right. He botched it. Got all the way to the end and at the verification stage; it asked for eye color on driver license and to select a previous address from a list of 5. To make matters worse it only gave 80 seconds in which to respond. So now there is a hold on transferring funds on the account. Oh well he knows for next time to gather the information beforehand. So hes hoping he can still tie the account to Paypal and try something that way. Lesson learned. Thanks for your help.

[paulbras]

next time they are not going to ask about eye color or recent address.. they'all ask some other random question which you will not be able to figure out in 80 seconds. You have to do a lot of studying and hope to know the right answer when the time comes. Just get some dumps and go instore shopping. a lot easier, quicker, low risk.

[dynworan]

do not keep coins in any exchange or other e wallet service, some people lost over 25000 bitcoins doing this, it can only be foolish. but also keep in mind that if you loose your waller or encrypt your wallet, and forget the password or loose the wallet file or it becomes corrupted, you are just fucked. there is no possible way to recover the coins short of brute forcing the bitcoin address, and some estimates of doing that with current technology and intellect, it would take over 100 years.

a safe method of backing up would be to several dvds and flash drivers, at least 3 of each (its okay to have one of each inside each container). i do not suggest encrypting backups, although encrypting the copy of the wallet on your machine is probably a good idea. just make sure your backup is not encrypted. put a cd/dvd/m-disc and usb drive containing the non encrypted wallet inside a foil container of at least 30 sheets of foil. make sure there is no openings at all. you may also want to consider wrapping the items in some non conductive fabric like a pillow sheet or paper towels or something, before putting the foil on, some people say its not good to have items touching the faraday cage. you may also want to put several plastic airtight/watertight bags around it too. keep a computer with only linux and bitcoin on it, unplug this computer when not in use, it may take several hours/days for the bitcoin client to download the entire blockchain, you do not need to backup the block chain, just your wallet.dat file containing your bitcoin private keys.

if you want to, you can test your secure container by putting it inside a microwave for 2+ minutes. if the usb drive and cd/dvd still work, you method of enclosing the storage media is good. make sure you store this stuff in a safe place like a safe. every 1-3 months check one of your backup containers to make sure the storage media is still working. never plug or use the media on a non linux machine. its just too easy and common to get viruses on windows and osx.

additionally, you should be using tor hidden services to mix your coins before storing them. consider connecting to tor through a vpn or wifi. keep in mind that if you use the bitcoin software, your ip address is known to be associated with a bitcoin address, so only do it behind a vpn, i like ipredator myself, for making sure my lines are secure. or use open wifi, hacked wifi or whatever. you can also use the vpn inside the wifi. im not sure what a good way of paying for the ipredator is.


this is very rough, and does not contain all information required to be safe with a lot of currency. if you decide to buy a lot of bitcoins, take into account that the price of bitcoin vs usd/other fiat currency can change and you could end up loosing half or more of your spending power. Pt/Au/Ag or other low risk sub 10 year investments could be better for now. i also urge you to research the flaws in the bitcoin system as well. also keep in mind that buying assets like Au and Ag are NOT LONG TERM INVESTMENTS, they are only to protect yourself from inflation of fiat currency.

if i left out anything or if something does not make sense, pm me?

and lastly, do not launder money, its a federal offense i think.

[Killer]

Originally Posted by ResultingInDeath

You were right. He botched it. Got all the way to the end and at the verification stage; it asked for eye color on driver license and to select a previous address from a list of 5. To make matters worse it only gave 80 seconds in which to respond. So now there is a hold on transferring funds on the account. Oh well he knows for next time to gather the information beforehand. So hes hoping he can still tie the account to Paypal and try something that way. Lesson learned. Thanks for your help.

Could you tell us what questions were asked? Or at least as many as you can remember? Previous address, never heard of that being asked before.

[ResultingInDeath]

Originally Posted by Killer

Could you tell us what questions were asked? Or at least as many as you can remember? Previous address, never heard of that being asked before.

As far as I can remember those were the only security questions he was asked. Unfortunately transferring from the banking institution is not the only issue. The Bitcoin exchange has verification procedures as well. If anybody knows of an exchange that would allow a bank transfer without a copy of ID and utility bill please share.