Secret Service Agent Who Stole Silk Road Bitcoins ...

More Prison Time for Ex-Agent in Silk Road Case

OriginalLink: https://www.deepdotweb.com/2017/11/21/prison-time-ex-agent-silk-road-case/
More Prison Time for Ex-Agent in Silk Road Case
Shaun Bridges, the dirty Secret Service agent who had already landed a six-year prison sentence for the theft of $800,000 worth of bitcoins during the Silk Road investigation, just received another two-years for another bitcoin heist.
In March 2015, authorities arrested Shaun Bridges and Drug Enforcement Administration agent Carl Force. Both men had been part of the team behind the investigation and seizure of the Silk Road marketplace. Both men had stolen substantial amounts of bitcoin from the Silk Road and diverted the money into their bitcoin wallets. Bridges later pleaded guilty to both money laundering and obstruction of justice. Force, in turn, pleaded guilty to money laundering, extortion, and obstruction of justice.
The Department of Justice settled upon a 71-month sentence for Bridges and an 87-month sentence for Force. Bridges also agreed to forfeit $500,000 to the U.S. government. “I’ve lost a lot,” Bridges allegedly told the court. “I’ve accepted responsibility…I just [want] to apologize to everybody.”
However, Bridges had not ended his desperate attempt to keep bitcoin from the government (or from the original owners). Before serving any prison time, the corrupt agent managed to divert “government-owned” bitcoin to wallets under his control. The former Secret Service agent had stolen the current equivalent of $11.3 million in bitcoin.
The incident came out of nowhere. News about the agent had dulled to a whisper. Then, on January 28, federal agents raided the 35-year-old disgraced agent’s house one day before he was scheduled to surrender himself to the prison system for intake.
The authorities claimed Bridges had posed a serious flight risk and reported finding items such as passports and packed travel bags during the raid. U.S. District Judge Richard Seeborg had already banned Bridges from leaving the country or changing his name; the court had given the man temporary freedom but acknowledged the significant flight risk he posed.
Later documents revealed that Bridges had used his former Secret Service position to access the private key associated with a government bitcoin wallet. The wallet had contained (at least) 1,600 bitcoins linked to a 2014 bitcoin exchange investigation. He transferred the bitcoins to multiple wallets under his control.
Bridges admitted to the bitcoin theft and signed a plea agreement that imposed a sentence of 24-months in prison for one count of money laundering. “Bridges was also ordered to forfeit approximately 1,500 bitcoin and other fiat currency, which is currently valued at approximately $10.4 million,” the Department of Justice press release added.
submitted by ThePharmaInitiative to DNMBusts [link] [comments]

Former Secret Service Agent Sentenced In Scheme Related To Silk Road Investigation: Also ordered to forfeit approximately 1,500 bitcoin

This is the best tl;dr I could make, original reduced by 53%. (I'm a bot)
Shaun W. Bridges, 35, of Laurel, Md., was sentenced to 24 months in prison by U.S. District Judge Richard Seeborg in San Francisco following his earlier guilty plea to one count of money laundering.
Bridges had been a Special Agent with the U.S. Secret Service for approximately six years in the Baltimore Field Office.
Bridges' responsibilities included, among other things, conducting forensic computer investigations in an effort to locate, identify and prosecute targets of the Baltimore Task Force, including Ross Ulbricht, aka "Dread Pirate Roberts," who ran the Silk Road from the Northern District of California.
In 2015, Bridges was arrested and taken into custody on charges related to the theft of approximately 1,600 bitcoin from a digital wallet belonging to the U.S. government.
According to admissions made in connection with his guilty plea, Bridges admitted to using a private key to access a digital wallet belonging to the U.S. government, and subsequently transferring the bitcoin to other digital wallets at other bitcoin exchanges to which only he had access.
As part of his plea, Bridges agreed to turn over the stolen bitcoin to U.S. agents.
Summary Source | FAQ | Feedback | Top keywords: Bridges#1 U.S.#2 bitcoin#3 approximately#4 Road#5
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Secret Service agent stole 1,600 Bitcoins from Silk Road wallet

This is the best tl;dr I could make, original reduced by 53%. (I'm a bot)
Shaun W. Bridges, 35, of Laurel, Md., was sentenced to 24 months in prison by U.S. District Judge Richard Seeborg in San Francisco following his earlier guilty plea to one count of money laundering.
Bridges had been a Special Agent with the U.S. Secret Service for approximately six years in the Baltimore Field Office.
Bridges' responsibilities included, among other things, conducting forensic computer investigations in an effort to locate, identify and prosecute targets of the Baltimore Task Force, including Ross Ulbricht, aka "Dread Pirate Roberts," who ran the Silk Road from the Northern District of California.
In 2015, Bridges was arrested and taken into custody on charges related to the theft of approximately 1,600 bitcoin from a digital wallet belonging to the U.S. government.
According to admissions made in connection with his guilty plea, Bridges admitted to using a private key to access a digital wallet belonging to the U.S. government, and subsequently transferring the bitcoin to other digital wallets at other bitcoin exchanges to which only he had access.
As part of his plea, Bridges agreed to turn over the stolen bitcoin to U.S. agents.
Summary Source | FAQ | Feedback | Top keywords: Bridges#1 U.S.#2 bitcoin#3 approximately#4 Road#5
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SR1 seller/money-exchanger 'JumboMonkeyBiscuit' busted November 2014 using SR1 server image

Another gift from the recent Bridges filings is the mention of him stealing 50btc confiscated under civil asset seizure as part of his Silk Road work: pg24-27 of exhibit b:
*Theft of the government funds from the Callahan government seizure.
44. In a separate incident, on November 5, 2014, then-Secret Service Agent Bridges administratively seized 50.44 bitcoins, worth approximately $20,000 at the time of the seizure, from Tom and Amanda Callahan of Hurlock, Maryland (the "Callahan seizure"). The Callahan seizure stemmed from a warrant by the Maryland State Police/Dorchester County, Maryland Narcotics Task Force, in which Bridges participated, for the Callahan residence in Hurlock, Maryland. During the execution of that search warrant, 50.44 bitcoins were identified and seized.
45. On November 5, 2014, the proceeds of the Callahan seizure, 50.44 bitcoin, were transferred to wallet address 18Pf8yVQdURiXT2e3vGbpVJ8XXg1bfzfme (hereinafter "zfme"). The transfer to the "zfme" wallet was presumably made by or at the direction of federal law enforcement officers involved in the Callahan seizure, which included Bridges as the digital currency expert and fellow Baltimore Silk Road Task Force Members; however, it is at this point undocumented in the case files who created the "zfme" wallet.2 [The affidavit in support of the seizure warrant states that Amanda Callahan "voluntarily transferred the contents of the Bitcoin addressed [listed above] to the agents, and those contents presently are held in the custody of the U.S. Secert Service."]
46. Importantly, there is and was no record of the "zfme" address in seizure files. All that is listed in the original wallets/addresses seized from the Callahans. The following original addresses associated with the seized wallets were listed: ...
47. Shortly after the 50.44 bitcoins were seized, the USSS Asset Forfeiture Branch determined that the funds could not be administratively seized. Specifically, on December 8, 2014, the USSS Asset Forfeiture Branch wrote in an email to Bridges that "After discussing [the seizure] with the Office of Chief Counsel, they decided that the particular facts of the case will not allow the Secret Service to proceed with the administrative seizure process. That decision was reached because OCC determined that there was not probable cause for wire fraud or mail fraud violations, Title 18 U.S.C. 1960 is not one of the core violations that the Secret Service has jurisdiction over, and under Title 18 U.S.C. 1956, any laundering appears to be predicated on drug offenses. Therefore, without any additional instances of fraud under the Secret Service Administrative Statutes, this seizure could not be pursued administratively. However, it could still be possible to forfeit the property through the AUSA or at the state level."
48. Therefore, on or about December 29, 2014, then-Special Agent Bridges sought a civil seizure warrant from the District of Maryland. It is unclear currently whether he worked with the U.S. Attorney's Office for the District of Maryland to obtain this seizure warrant. A civil seizure warrant for the 50.44 seized from the Callahans was issued by Magistrate Judge Timothy J. Sullivan on December 29, 2014. The warrant listed, in its Attachment A, the following addresses and made no mention of the "zfme" wallet/address but instead contained the following addresses: ...
49. Give the December 2015 discovery of the theft of the bitcoins at issue in the November Bitstamp seizure, the USSS recently checked on the status of the bitcoins that were the subject of the Callahan seizure warrant, to wit: ...
50. When these addresses were quired on the blockchain, the results showed that all of the funds were transferred on November 5, 2014 to the aforementioned "zfme" wallet address. This "zfme" address did not engage in any additional activity until September 10, 2015, when the entire balance was zeroed out and transferred to a series of other addresses. It appears as if this, like the November Bitstamp seizure, was the subject of yet another theft.
Who are the Callahans, why was the Baltimore SR taskforce raiding them, and how did they have 50btc to lose? Moustache digs up one of the civil asset seizure proceedings in question, "United States v. 50.44 Bitcoins", which reveals all:
After the Silk Road was dismantled by federal law enforcement authorities in October 2013, authorities conducted an investigation to determine the identities of the users of the site. Authorities discovered that a user operating under the username "JumboMonkeyBiscuit" ("the user") "served as an illegal vendor of narcotics and as a Bitcoin exchanger—exchanging fiat currency into crypto-currency and vice versa." (ECF No. 1-1 at 2.) Between April 2013 and October 2013, the user completed 1,521 transactions, most of which were transactions to convert fiat currency into Bitcoins and vice versa. (Id.) Investigators determined that the clients of the user were directed to ship cash to a post office box registered to Thomas Callahan. (Id.) Bonus states that the user accepted the mailed cash and transmitted Bitcoins as directed by the sender of the cash. (Id. at 3.) In October 2014, United States Postal Inspectors intercepted a parcel containing $10,000 in U.S. Currency. (Id.) The parcel was addressed to a fictitious business at an address connected with an investigation into the shipment of narcotics through the U.S. mail. The Postal Inspectors determined from a review of the packing slip contained in the parcel that the package had been sent by an online package mailing service account registered with Endicia.com. The registered customer of the Endicia.com account was Thomas Callahan, whose account was connected to a physical address closely resembling the return address on the parcel. (Id. at 4.) The registered customer of the Endicia.com account had previously been issued approximately 130 postage and tracking numbers. (Id.)
In November 2014, members of federal law enforcement executed a search warrant at 4604 Payne Road, Hurlock, Maryland, which was another address connected to the Endicia.com account registered to Thomas Callahan. (Id. at 5.) During the search, Amanda Callahan was present at the residence and agreed to speak to investigators. She stated that she and Thomas Callahan (the "Callahans") act as money exchangers on various internet sites, including online marketplaces like the Silk Road. She showed investigators a personal computer that contained Bitcoins stored at several Bitcoin addresses, including a wallet with a name that matched the addressee of the intercepted parcel. Amanda Callahan voluntarily transferred the contents of the Bitcoin addresses from her computer to the agents. Thereafter, the agents executed a seizure warrant for the 50.44 Bitcoins held by the Callahans at the Bitcoin addressed that were voluntarily transferred to the agents.
"JumboMonkeyBiscuit"'s SR1 profile confirms that they were indeed in the perilous business of being a fiat/Bitcoin money-exchanger for SR1 users, and it seems that they have fallen the way past SR1 money-exchangers have: the physical cash-nexus. The SR1 server image is mentioned, and unencrypted PMs are clearly the source of the PO box address - which was in Callahan's real name. And that's all she wrote.
submitted by gwern to SilkRoad [link] [comments]

Corrupt Federal Agent, Who Stole Bitcoins From Silk Road, Pleads Guilty To Money Laundering

This is the best tl;dr I could make, original reduced by 32%. (I'm a bot)
A former the United States Secret Service agent who stole hundreds of thousands of dollars worth of Bitcoins during an investigation into then-largest underground marketplace Silk Road has now pleaded guilty to money laundering.
Shaun W. Bridges is one of two former US undercover agents who pleaded guilty in 2015 to one count of money laundering and one count of obstruction and was sentenced in December same year to almost six years in prison for stealing over $800,000 in Bitcoin while investigating Silk Road.35-years-old Bridges, who had been a Special Agent with the U.S. Secret Service for almost 6 years, along with his partner stole money from Silk Road accounts and framed someone else for the laundering, which even led the Silk Road founder Ross Ulbricht to plan a murder.
The missing Bitcoins were found by the Secret Service agency in December when Bridges was sentenced after admitting that he moved and stole approximately 1,600 Bitcoin.
According to his guilty plea in this case, Bridges said it used a private key to access a digital wallet belonging to the Secret Service account, and subsequently transferred the bitcoins to "Other digital wallets at other Bitcoin exchanges to which only he had access."
"In the course of the investigation, U.S. agents were able to locate and seize approximately 600 of the stolen bitcoin and, as part of his plea, Bridges agreed to turn over the remaining stolen Bitcoin," the DoJ said in the statement.
On Tuesday, Bridges pleaded guilty to one count of money laundering before the United States District Court Judge of the Northern District of California.
Summary Source | FAQ | Feedback | Top keywords: Bitcoin#1 Bridges#2 Silk#3 Road#4 Service#5
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