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US Tax Guide for ETH and other cryptocurrencies

Introduction:  
Greetings, fellow ethtraders! Happy New Year! In the next few months, taxpayers across the US will be filing their 2017 tax returns. As an Enrolled Agent and a ETH/cryptocurrency investor and enthusiast, I wanted to write up a brief guide on how your investments in ETH and other cryptocurrencies are taxed in the US.
 
 
1. Are ETH/cryptocurrency realized gains taxable?
Yes. The IRS treats virtual currency (such as cryptocurrency) as property. That means if you sell ETH, BTC, or any other cryptocurrency that has appreciated in value, you have realized a capital gain and must pay taxes on this income. If you held the position for one year or less, it is a short-term capital gain which is taxed at your ordinary income tax rate. If you held the position for more than one year, it is a long-term capital gain which is taxed at your long-term capital gains tax rate. In most cases, this is 15%, but could also be 0% or 20% depending on your specific ordinary income tax bracket.
 
2. If I sell my ETH for USD on Coinbase but do not transfer the USD from Coinbase to my bank account, am I still taxed?
Yes. The only thing that matters is that you sold the ETH, which creates a taxable transaction. Whether you transfer the USD to your bank account or not does not matter.
 
3. If I use my ETH to buy OMG or another cryptocurrency, is this a taxable transaction?
Most likely yes. See #4 below for a more detailed explanation. If assuming crypto to crypto trades are not able to be like-kind exchanged, then continue on to the next paragraph here.
This is actually two different transactions. The first transaction is selling your ETH for USD. The second transaction is buying the OMG with your USD. You must manually calculate these amounts. For example, I buy 1 ETH for $600 on Coinbase. Later on, the price of 1 ETH rises to $700. I transfer that 1 ETH to Bittrex and use it to buy 37 OMG. I have to report a capital gain of $100 because of this transaction. My total cost basis for the 37 OMG I purchased is $700.
 
4. If I use my ETH to buy OMG or other cryptocurrency, could that be considered a tax-free like-kind exchange?
Probably not. The new tax law says that like-kind exchanges only pertain to real estate transactions. This was done with Section 13303, which replaced “property” with “real property” for all of Section 1031 (page 72 near the bottom). My personal interpretation:
In 2018 and going forward, cryptocurrencies can definitely not be like-kind exchanged.
In 2017 and before, it is a very gray area. I personally am not taking the position that they can be like-kind exchanged, because if the IRS went after a taxpayer who did this, the IRS would probably win and the taxpayer would owe taxes, interest, and probably penalties on every single little gain made from trading one cryptocurrency for another.
Here is a great interpretation of why trading cryptocurrency for cryptocurrency is probably not a like-kind transaction.
In my opinion, the biggest factor is that like-kind exchanges must be reported on Form 8824 and not just ignored. Therefore, if a taxpayer is claiming like-kind exchanges on crypto to crypto exchanges, he or she would have to fill out a Form 8824 for each individual transaction of crypto to crypto, which would be absolutely cumbersome if there are hundreds or thousands of such trades.
Here is another article about like-kind exchanges.
Here is the American Institute of CPAs' letter to the IRS, dated June 10, 2016, asking them to release guidance on whether crypto to crypto can be like-kind exchanged or not. The IRS has not responded to the letter.
 
5. How do I calculate the realized capital gain or loss on the sale of my cryptocurrency?
The realized gain or loss is your total proceeds from the sale minus what you purchased those positions for (your cost basis). For example, you bought 1 ETH for $300 in June of 2017. In December of 2017, you sold that 1 ETH for $800. Your realized gain would be $800 - $300 = $500. Since you held it for one year or less, the $500 would be a short-term capital gain taxed at your ordinary income tax rate.
 
6. Which ETH's cost basis do I use if I have multiple purchases?
The cost basis reporting method is up to you. For example, I buy my first ETH at $300, a second ETH at $530, and a third ETH at $400. Later on, I sell one ETH for $800. I can use:
FIFO (first in first out) - cost basis would the first ETH, $300, which would result in a gain of $500.
LIFO (last in first out) - cost basis would be the third ETH, $400, which would result in a gain of $400.
Average cost - cost basis would be the average of the three ETH, $410, which would result in a gain of $390.
Specific identification - I can just choose which coin's cost basis to use. For example, I can choose the second ETH's cost basis, $530, which would result in the lowest capital gains possible of $270.
 
7. If I end up with a net capital loss, can I claim this on my tax return?
Capital gains and capital losses are netted on your tax return. If the net result of this is a capital loss, you may offset it against ordinary income on your tax return, but only at a maximum of $3,000 per year. The remaining losses are carried forward until you use them up.
 
8. What is the tax rate on my capital gains?
If long-term, the tax rate is 0%, 15%, or 20%, depending on your ordinary income tax bracket. If short-term, the tax bracket you’ll be in will depend on your total income and deductions. The ordinary income tax brackets are 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% in 2017 and 10%, 12%, 22%, 24%, 32%, 35%, and 37% in 2018 and going forward.
Here are the 2017 and 2018 ordinary income tax brackets.
Here are the 2017 and 2018 long-term capital gains tax brackets.
Here is a detailed article on how the calculation of long-term capital gains tax work and how you can take advantage of the 0% long-term capital gains rate, if applicable.
 
9. If I mine ETH or any other cryptocurrency, is this taxable?
Yes. IRS Notice 2014-21 states that mining cryptocurrency is taxable. For example, if you mined $7,000 worth of ETH in 2017, you must report $7,000 of income on your 2017 tax return. For many taxpayers, this will be reported on your Schedule C, and you will most likely owe self-employment taxes on this income as well. The $7,000 becomes the cost basis in your ETH position.
 
10. How do I calculate income for the cryptocurrency I mined?
This is the approach I would take. Say I mined 1 ETH on December 31, 2017. I would look up the daily historical prices for ETH and average the high and low prices for ETH on December 31, 2017, which is ($760.35 + $710.12) / 2 = $735.24. I would report $735.24 of income on my tax return. This would also be the cost basis of the 1 ETH I mined.
 
11. Can I deduct mining expenses on my tax return?
If you are reporting the income from mining on Schedule C, then you can deduct expenses on Schedule C as well. You can deduct the portion of your electricity costs allocated to mining, and then you depreciate the cost of your mining rig over time (probably over five years). Section 179 also allows for the full deduction of the cost of certain equipment in year 1, so you could choose to do that if you wanted to instead.
 
12. If I receive ETH or other cryptocurrency as a payment for my business, is this taxable?
Yes. Similar to mining, your income would be what the value of the coins you received was. This would also be your cost basis in the coins.
 
13. If I received Bitcoin Cash as a result of the hard fork on August 1, 2017, is this taxable?
Most likely yes. For example, if you owned 1 Bitcoin and received 1 Bitcoin Cash on August 1, 2017 as a result of the hard fork, your income would be the value of 1 Bitcoin Cash on that date. Bitcoin.tax uses a value of $277. This value would also be your cost basis in the position. Any other hard forks would probably be treated similarly. Airdrops may be treated similarly as well, in the IRS' view.
Here are a couple more good articles about reporting the Bitcoin Cash fork as taxable ordinary income. The second one goes into depth and cites a US Supreme Court decision as precedent: one, two
 
14. If I use ETH, BTC, or other cryptocurrency to purchase goods or services, is this a taxable transaction?
Yes. It would be treated as selling your cryptocurrency for USD, and then using that USD to purchase those goods or services. This is because the IRS treats cryptocurrency as property and not currency.
 
15. Are cryptocurrencies subject to the wash sale rule?
Probably not. Section 1091 only applies to stock or securities. Cryptocurrencies are not classified as stocks or securities. Therefore, you could sell your ETH at a loss, repurchase it immediately, and still realize this loss on your tax return, whereas you cannot do the same with a stock. Please see this link for more information.
 
16. What if I hold cryptocurrency on an exchange based outside of the US?
There are two separate foreign account reporting requirements: FBAR and FATCA.
A FBAR must be filed if you held more than $10,000 on an exchange based outside of the US at any point during the tax year.
A Form 8938 (FATCA) must be filed if you held more than $75,000 on an exchange based outside of the US at any point during the tax year, or more than $50,000 on the last day of the tax year.
The penalties are severe for not filing these two forms if you are required to. Please see the second half of this post for more information on foreign account reporting.
 
17. What are the tax implications of gifting cryptocurrency?
Small gifts of cryptocurrency do not have a tax implication for the gift giver or for the recipient. The recipient would retain the gift giver's old cost basis, so it could be a good idea for the gift giver to provide records of the original cost basis to the recipient as well (or else the recipient would have to assume a cost basis of $0 if the recipient ever sells the cryptocurrency).
Large gifts of cryptocurrency could start having gift and estate tax implications on the giver if the value exceeds more than $14,000 (in 2017) or $15,000 (in 2018) per year per recipient.
Here's a good article on Investopedia on this issue.
An important exception applies if the gift giver gives cryptocurrency that has a cost basis that is higher than the market value at the time of the gift. Please see the middle of this post for more information on that.
 
18. Where can I learn even more about cryptocurrency taxation?
Unchained Podcast: The Tax Rules That Have Crypto Users Aghast
IRS Notice 2014-21
Great reddit post from tax attorney Tyson Cross from 2014
 
19. Are there any websites that you recommend in helping me with all of this?
Yes - I have used bitcoin.tax and highly recommend it. You can import directly from an exchange to the website using API, and/or export a .csv/excel file from the exchange and import it into the website. The exchanges I successfully imported from were Coinbase, GDAX, Bittrex, and Binance. The result is a .csv or other file that you can import into your tax software.
I have also heard good things about cointracking.info but have not personally used it myself.
 
20. Taxation is theft!
I can't help you there.
 
 
That is the summary I have for now. There have been a lot of excellent cryptocurrency tax guides on reddit, such as this one, this one, and this one, but I wanted to post my short summary guide on ethtrader which hopefully answers some of the questions you all may have about US taxation of ETH and other cryptocurrencies. Please let me know if you have any more questions, and I’d be happy to answer them to the best of my ability. Thank you!
Regarding edits: I have made many edits to my post since I originally posted it. Please refresh to see the latest edits to my guide. Thank you.
 
Disclaimer:
The information contained within this post is provided for informational purposes only and is not intended to substitute for obtaining tax, accounting, or financial advice from a professional.
Any U.S. federal tax advice contained in this post is not intended to be used for the purpose of avoiding penalties under U.S. federal tax law.
Presentation of the information via the Internet is not intended to create, and receipt does not constitute, an advisor-client relationship. Internet users are advised not to act upon this information without seeking the service of a tax professional.
submitted by Nubboi to ethtrader [link] [comments]

An extensive guide for cashing out bitcoin and cryptocurrencies into private banks

Hey guys.
Merry Xmas !
I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively.
The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow.
I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise.
*The origin of your crypto wealth
*Your background (residence, citizenship and probity)
These two aspects must be documented in-depth.
How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit.
1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start.
Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice.
2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand.
Let’s have a look at a few examples and how to document the few profiles I mentioned earlier.
The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous.
The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here:
*proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early.
*story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day.
*micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning.
*signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ?
*ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow.
The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow:
*Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig.
*Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful.
*Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened.
*Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet.
*Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time.
The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me.
The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative.
The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on https://localbitcoins.com/ and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point.
Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria:
*Seriousness of the project Extensive study of the whitepaper to limit the reputation risk
*AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted
*Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises...
*Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me.
First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards.
For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t.
EU tricks
Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible.
Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand.
Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really.
Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI
Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way.
Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids?
Dubaï
  1. Set up a company in Dubaï, get your resident card.
  2. Spend one day every 6 month there
  3. ???
  4. Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen.
The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains).
The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again.
Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly.
“Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out.
The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;)
What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight.
The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard.
Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp,
The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny.
Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts.
Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks.
Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier)
Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around.
Your options: DIY or going through a regulated financial intermediary.
Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately.
The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused.
Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them!
The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax.
The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million.
Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction.
Cheers. @swisspb on telegram
submitted by Swissprivatebanker to Bitcoin [link] [comments]

US Tax Guide for Cryptocurrencies

Introduction:  
Greetings, cryptax! Tax season is upon us, and in the next couple of months, taxpayers across the US will be filing their 2017 tax returns. As a tax professional, an Enrolled Agent, and a cryptocurrency investor and enthusiast, I wanted to write up a brief guide on how your investments in cryptocurrencies are taxed in the US.
 
 
1. Are cryptocurrency realized gains taxable?
Yes. The IRS treats virtual currency (such as cryptocurrency) as property. That means if you sell BTC, ETH, or any other cryptocurrency that has appreciated in value, you have realized a capital gain and must pay taxes on this income. If you held the position for one year or less, it is a short-term capital gain which is taxed at your ordinary income tax rate. If you held the position for more than one year, it is a long-term capital gain which is taxed at your long-term capital gains tax rate. In most cases, this is 15%, but could also be 0% or 20% depending on your specific ordinary income tax bracket.
 
2. If I sell my BTC for USD on Coinbase but do not transfer the USD from Coinbase to my bank account, am I still taxed?
Yes. The only thing that matters is that you sold the BTC, which creates a taxable transaction. Whether you transfer the USD to your bank account or not does not matter.
 
3. If I use my BTC to buy another cryptocurrency (XMR for example), is this a taxable transaction?
Most likely yes. See #4 below for a more detailed explanation. If assuming crypto to crypto trades are not able to be like-kind exchanged, then continue on to the next paragraph here.
This is actually two different transactions. The first transaction is selling your BTC for USD. The second transaction is buying the XMR with your USD. You must manually calculate these amounts (or use a website such as bitcoin.tax or software to calculate it for you). For example, I buy 1 BTC for $8,000 on Coinbase. Later on, the price of 1 BTC rises to $9,000. I transfer that 1 BTC to Bittrex and use it to buy 38 XMR. I have to report a capital gain of $1,000 because of this transaction. My total cost basis for the 38 XMR I purchased is $9,000.
 
4. If I use my BTC to buy another cryptocurrency, could that be considered a tax-free like-kind exchange?
Probably not. The new tax law says that like-kind exchanges only pertain to real estate transactions. This was done with Section 13303, which replaced “property” with “real property” for all of Section 1031 (page 72 near the bottom). My personal interpretation:
In 2018 and going forward, cryptocurrencies can definitely not be like-kind exchanged.
In 2017 and before, it is a very gray area. I personally am not taking the position that they can be like-kind exchanged, because if the IRS went after a taxpayer who did this, the IRS would probably win and the taxpayer would owe taxes, interest, and probably penalties on every single little gain made from trading one cryptocurrency for another.
Here is a great interpretation of why trading cryptocurrency for cryptocurrency is probably not a like-kind transaction.
In my opinion, the biggest factor is that like-kind exchanges must be reported on Form 8824 and not just ignored. Therefore, if a taxpayer is claiming like-kind exchanges on crypto to crypto exchanges, he or she would have to fill out a Form 8824 for each individual transaction of crypto to crypto, which would be absolutely cumbersome if there are hundreds or thousands of such trades.
Another is that there has to be a Qualified Intermediary that facilitates a like-kind exchange. So, it's a more involved process, and that's why I think cryptocurrency cannot be like-kind exchanged.
Here is another article about like-kind exchanges.
Here is the American Institute of CPAs' letter to the IRS, dated June 10, 2016, asking them to release guidance on whether crypto to crypto can be like-kind exchanged or not. The IRS has not responded to the letter.
 
5. How do I calculate the realized capital gain or loss on the sale of my cryptocurrency?
The realized gain or loss is your total proceeds from the sale minus what you purchased those positions for (your cost basis). For example, you bought 1 BTC for $3,000 in June of 2017. In December of 2017, you sold that 1 BTC for $18,000. Your realized gain would be $18,000 - $3,000 = $15,000. Since you held it for one year or less, the $15,000 would be a short-term capital gain taxed at your ordinary income tax rate.
 
6. Which BTC's cost basis do I use if I have multiple purchases?
The cost basis reporting method is up to you. For example, I buy my first BTC at $3,000, a second BTC at $5,300, and a third BTC at $4,000. Later on, I sell one BTC for $8,000. I can use:
FIFO (first in first out) - cost basis would the first BTC, $3,000, which would result in a gain of $5,000.
LIFO (last in first out) - cost basis would be the third BTC, $4,000, which would result in a gain of $4,000.
Average cost - cost basis would be the average of the three BTC, $4,100, which would result in a gain of $3,900.
Specific identification - I can choose which coin's cost basis to use. For example, I can choose the second BTC's cost basis, $5,300, which would result in the lowest capital gains possible of $2,700.
The IRS has not given any guidance on cost basis accounting methods for cryptocurrency, but I am taking the position that any method can be used, and that you can change your method at any time as you please (e.g. FIFO for one year, LIFO for another. Or, FIFO for the sale of a specific lot, then LIFO for the sale of another lot on the same day).
 
7. If I end up with a net capital loss, can I claim this on my tax return?
Capital gains and capital losses are netted on your tax return. If the net result of this is a capital loss, you may offset it against ordinary income on your tax return, but only at a maximum of $3,000 per year. The remaining losses are carried forward until you use them up.
 
8. What is the tax rate on my capital gains?
If long-term, the tax rate is 0%, 15%, or 20%, depending on your ordinary income tax bracket. If short-term, the tax bracket you’ll be in will depend on your total income and deductions. The ordinary income tax brackets are 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% in 2017 and 10%, 12%, 22%, 24%, 32%, 35%, and 37% in 2018 and going forward.
Here are the 2017 and 2018 ordinary income tax brackets.
Here are the 2017 and 2018 long-term capital gains tax brackets.
Here is a detailed article on how the calculation of long-term capital gains tax work and how you can take advantage of the 0% long-term capital gains rate, if applicable.
 
9. If I mine BTC or any other cryptocurrency, is this taxable?
Yes. IRS Notice 2014-21 states that mining cryptocurrency is taxable. For example, if you mined $8,000 worth of BTC in 2017, you must report $8,000 of ordinary income on your 2017 tax return. For many taxpayers, this will be reported on your Schedule C, and you will most likely owe self-employment taxes on this income as well. The $8,000 becomes the cost basis in your BTC position.
 
10. How do I calculate income for the cryptocurrency I mined?
This is the approach I would take. Say I mined 0.01 BTC on December 31, 2017. I would look up the daily historical prices for BTC and average the high and low prices for BTC on December 31, 2017, which is ($14,377.40 + $12,755.60) / 2 = $13,566.50. I would report $13,566.50 * 0.01 = $135.67 of income on my tax return. This would also be the cost basis of the 0.01 BTC I mined.
 
11. Can I deduct mining expenses on my tax return?
If you are reporting the income from mining on Schedule C, then you can deduct expenses on Schedule C as well. You can deduct the portion of your electricity costs allocated to mining, and then you depreciate the cost of your mining rig over time (probably over five years). Section 179 also allows for the full deduction of the cost of certain equipment in year 1, so you could choose to do that if you wanted to instead.
 
12. If I receive BTC or other cryptocurrency as a payment for my business, is this taxable?
Yes. Similar to mining, your income would be what the value of the coins you received was. This would also be your cost basis in the coins.
 
13. If I received Bitcoin Cash as a result of the hard fork on August 1, 2017, is this taxable?
Most likely yes. For example, if you owned 1 Bitcoin and received 1 Bitcoin Cash on August 1, 2017 as a result of the hard fork, your income would be the value of 1 Bitcoin Cash on that date. Bitcoin.tax uses a value of $277. This value would also be your cost basis in the position. Any other hard forks would probably be treated similarly. Airdrops may be treated similarly as well, in the IRS' view.
Here are a couple more good articles about reporting the Bitcoin Cash fork as taxable ordinary income. The second one goes into depth and cites a US Supreme Court decision as precedent: one, two
 
14. If I use BTC or other cryptocurrency to purchase goods or services, is this a taxable transaction?
Yes. It would be treated as selling your cryptocurrency for USD, and then using that USD to purchase those goods or services. This is because the IRS treats cryptocurrency as property and not currency.
 
15. Are cryptocurrencies subject to the wash sale rule?
Probably not. Section 1091 only applies to stock or securities. Cryptocurrencies are not classified as stocks or securities. Therefore, you could sell your BTC at a loss, repurchase it immediately, and still realize this loss on your tax return, whereas you cannot do the same with a stock. Please see this link for more information.
 
16. What if I hold cryptocurrency on an exchange based outside of the US?
There are two separate foreign account reporting requirements: FBAR and FATCA.
A FBAR must be filed if you held more than $10,000 on an exchange based outside of the US at any point during the tax year.
A Form 8938 (FATCA) must be filed if you held more than $75,000 on an exchange based outside of the US at any point during the tax year, or more than $50,000 on the last day of the tax year.
The penalties are severe for not filing these two forms if you are required to. Please see the second half of this post for more information on foreign account reporting.
 
17. What are the tax implications of gifting cryptocurrency?
Small gifts of cryptocurrency do not have a tax implication for the gift giver or for the recipient. The recipient would retain the gift giver's old cost basis, so it could be a good idea for the gift giver to provide records of the original cost basis to the recipient as well (or else the recipient would have to assume a cost basis of $0 if the recipient ever sells the cryptocurrency).
Large gifts of cryptocurrency could start having gift and estate tax implications on the giver if the value exceeds more than $14,000 (in 2017) or $15,000 (in 2018) per year per recipient.
Here's a good article on Investopedia on this issue.
An important exception applies if the gift giver gives cryptocurrency that has a cost basis that is higher than the market value at the time of the gift. Please see the middle of this post for more information on that.
 
18. Where can I learn even more about cryptocurrency taxation?
Unchained Podcast: The Tax Rules That Have Crypto Users Aghast
IRS Notice 2014-21
Great reddit post from tax attorney Tyson Cross from 2014
 
19. Are there any websites that you recommend in helping me with all of this?
Yes - I have used bitcoin.tax and highly recommend it. You can import directly from an exchange to the website using API, and/or export a .csv/excel file from the exchange and import it into the website. The exchanges I successfully imported from were Coinbase, GDAX, Bittrex, and Binance. The result is a .csv or other file that you can import into your tax software.
I have also heard good things about cointracking.info but have not personally used it myself.
 
20. If I move my BTC from one exchange to another, or into a hard wallet, is this a taxable event?
No - you are not selling anything, so no gains are realized.
 
21. Where do I report cryptocurrency sales on my tax return?
The summary of your sales would reported on Schedule D on line 3 and/or line 10 depending on short-term or long-term. Supplemental Form 8949 must also be included with Box C or Box F checked depending on short-term or long-term. Form 8949 is where you must list each individual sale.
 
22. If coins become lost or inaccessible (e.g. lost or forgotten passphrase or thrown away hard drive), can I claim that as a loss? What about coins that have gotten stolen? What about losing money in investment or ICO scams (e.g. Bitconnect or Confido)?
These are really tricky questions. Unfortunately, the potential to claim such a loss against ordinary income is very low, especially with the new tax law. At the very least, capital losses can be claimed, but the deduction is capped at $3,000 per year against ordinary income with the rest carrying forward indefinitely.
The new tax law changed the casualty and theft loss to only apply to presidential disaster areas, so at least in the case of a loss passphrase, I think the answer is no for 2018 and going forward. For 2017, the answer is possibly yes. Here is an article on the subject if you are interested in reading more.
 
23. Taxation is theft!
Sorry, I can't help you there.
 
 
That is the summary I have for now. There have been a lot of excellent cryptocurrency tax guides on reddit, such as this one and this one, but I wanted to post my guide on cryptax which hopefully answers some of the questions you all may have about US taxation of cryptocurrencies. Please let me know if you have any more questions, and I’d be happy to answer them to the best of my ability. Thank you!
Regarding edits: I may make many edits to my post after I originally post it. Please refresh to see the latest edits to my guide. Thank you.
 
Disclaimer:
The information contained within this post is provided for informational purposes only and is not intended to substitute for obtaining tax, accounting, or financial advice from a professional.
Any U.S. federal tax advice contained in this post is not intended to be used for the purpose of avoiding penalties under U.S. federal tax law.
Presentation of the information via the Internet is not intended to create, and receipt does not constitute, an advisor-client relationship. Internet users are advised not to act upon this information without seeking the service of a tax professional.
submitted by Nubboi to cryptax [link] [comments]

Late buy-in of Cryto as nonbuyer's remorse, pricing itself out of a recessione, rumblings of approval despite quantum decryption threats, use in crimes, and predictive NLP "Trump's currency is dividing us" says one thing: Get you to the blockchain and open that trapdoor

The title really says it all.
Some say I'm butthurt about the late buy-in on crypto. If only I had bought myself a bitcoin when I gave a bitcoin to James Corbett...I'd be RICH. Well yes. That's exactly what they want me to think. You missed the boat on the deepstates own currency--Sucka! And shame. Shame on you for not having a bunch of disposable income to throw into a highly speculative hobby. Too bad you aren't a dot com millionaire who basically recreated twitter and IPO'd at laughably nonsensical overvaluation of 200M that you couldn't throw most of those millions into bitcoin, because that would make you a billionaire at this point. You couldn've been playing giant robots with Bezos in his high tech romper room. Too bad! Plebe. Lumpen plebe. You suck.
Right?
The latest thing is the twighlight language trying to further divide us with more "love trumps hate" type of languge. The latest shitmeme is from DNC chair Perez: "Trump's CURRENCY is Dividing us". This is a twilight language because it's trying to use black transfer propaganda language abuse to tie "currency" to "Trump", which is trying to make you hate "currency". Ya dig?
So that when they offer a new 'currency', you will hate "Trump's Currency' which is the dollar. Screw Trump and all his dollars! Dollars are for Trumpers. Dollars are so 2016. Crypo man. Gotta get me some of that Crypto and get with the progs
Sorry, the source is Breitbart, which you should know is kind of limited hangout altright mainstream press.
So here's what happens. They are prepping people to use bitcoin. So when they cay ICO, it doesn't mean as much 'Initial Cryptocoin Offer' as it means "Illuminati Cult Offer"... That temptation of the money from crypto skyrocketting is pressing everyone's avariciousness buttons and only the dumbest among us go for it
Because here's what happens.
Scenario 1
Scenario 2
Scenario 3
Sorry I'm so cynical these days but I've seen how they've pulled every stop in the book to undermine americans irrespective of politics. They are hurting everyone equally in each their own ways. They=deepstate / new world order. Basically this is coming down to Technoneofeudalists versus Populists. Are you on the side of the fascist dominators? Or the side of people, truth and everything we gave ourselves in the constitution?
What inspired this post is the idea of honeypots. The honeypot is also the free-sandwich technique. Anything free is going to have strings whether you see them or not
With google it was they were telling you 'do no evil' and yet we now know they are a CIA appliance for surveillance, bulk collection of deep mineable data, gaslighting (filter bubbles), and a domestic human zoo management strategy. Now they are attacking journalism by deploying very heavy-handed strategies to limit speech they dont' like politically (ie populist speech--'open source intelligence' primarily)
They hate that we deal in facts and that the natural configuration of the truth is as a weapon against tyrants. Because they are the tyrants!
Bitcoin, I still believe, will turn out to be a honeypot. They will use it like the stock market (which they control on the back end through fast transactions and ai, in addition to having insider intelligence on gov contracts and war).
They will get everyone on bitcoin and then they will open that trapdoor. It's a money funnel..that's what it will be.
I do understand that it will destroy money also if they do that. But that's ok. They already have all the gold and all the infrastructure to spin up more shell games...to them money hasn't existed for a while. Their currency is stolen art, stolen guns, stolen minerals, stolen children, stolen women, stolen organs, drugs, embargoed oil sold on the spot market. They dont need money. They've been bartering since time immemorial
submitted by 911bodysnatchers322 to C_S_T [link] [comments]

Good news Canada welcomes China cryptocurrency miners, let's go!

Quebec was fishing for tech giants but caught bitcoin miners.
At least that’s how David Vincent, business development director at electric utility Hydro Quebec, describes the results of a campaign launched in 2016 to lure the likes of Facebook, Amazon and Microsoft to build their data centers in the Canadian province.
The sales pitch was simple: the province offers plentiful, cheap and renewable electricity, along with cold weather and a politically stable environment.
And while Hydro Quebec has gotten plenty of bites from traditional data center operators, the company also quickly discovered those same traits are equally attractive for cryptocurrency mining operations.
Nonexistent just six months ago, interest in Quebec from commercial-scale bitcoin miners has skyrocketed, Vincent said, amid the surge in cryptocurrency prices and political uncertainty in other jurisdictions.
For Hydro Quebec, 35 cryptocurrency mining organizations are asking the company for information regarding connecting to the power grid there. Those companies now account 70 percent of the total wattage capacity in Hydro Quebec's development pipeline.
In an interview with CoinDesk, Vincent said:
“I have so much demand right now there’s no need for marketing. Pretty much every day I have a new one.”
And sentiments from others suggest what Hydro Quebec is seeing now is just the tip of the iceberg.
"Based on what I've seen in equipment purchase, real estate and power deals, things are exploding in Quebec," said Austin Hill, the former CEO of Blockstream, who is now investing in and backing some of the mining projects looking to Quebec.
Cheap and abundant
Cryptocurrency mining – the energy-intensive process by which new transactions are added to a blockchain – generally requires specialized hardware (either ASICs or GPUs) to solve complex mathematical puzzles. Because of the vast amount of computing power that's used, mining rigs generate a significant amount of heat, which is why mining operations look for colder environments to set up shop.
But it's not only the cold weather that's a draw for Quebec. The government's aggressive effort, during the post World War II era, to build dams in its northern regions has proven enticing enough to pull mining operators away from existing bases that already have weather on their side.
Because of that work, Quebec has become one of the largest hydroelectric power producers in the world. Hydro Electric, with 37,000 megawatts of installed electricity capacity, routinely produces at surplus levels and is thus able to offer some of the lowest rates in North America to its commercial customers.
For data centers, Hydro Quebec charges as low 2.48 cents (in USD) per kilowatt hour, and 3.94 cents per kilowatt-hour for bitcoin miners (the slight increase for the latter due to mining operations' smaller job creation and economic development footprint), Vincent said. These rates are anywhere from 50 percent to three times lower than in comparable parts of North America, according to data compiled by Hydro Quebec.
Historical consistency in pricing over time, and the assurance that the rates are not simply teasers that will jump overnight, are a key part of the value proposition for cryptocurrency mining operations, Vincent said. He added:
"We always succeed at staying below inflation. It’s been like that since 1963 and it’s not going to change."
And while some have argued that cryptocurrency mining is environmentally degrading, there's a growing trend by these mining operations toward finding competitive advantage via greater energy efficiency and resource optimization.
"In some hotter environments, the current ASIC equipment ends up having a very short shelf life of around six to nine months because it gets so hot, and the cost of cooling it isn’t worth the cost of the equipment," Hill, who heads the Montreal-based Brudder Ventures, said, adding:
"It’s just easier to run it super hot, throw it away and buy a new one. It’s hugely wasteful."
And moving to cooler climates, like Quebec, could help.
Political stability
Another driver behind Quebec’s accidental emergence as a cryptocurrency mining hub is that miners are increasingly looking for stable political environments where they can deploy their capital investments and plan their business efforts four to five years in advance with a higher degree of confidence.
While several of Hydro Quebec's interested parties are based in North America, a significant number of mining organizations hail from countries, notably China, where the landscape for cryptocurrency mining, and cryptocurrencies in general, has become cloudier.
In China, for instance, rumors have been surfacing that the government plans on withdrawing preferential benefits such as cheap electricity and tax deductions to bitcoin mining operations. Plus, the People's Bank of China has been one of the more aggressive regulators in the world when it comes to cryptocurrency, most recently issuing a ban on initial coin offerings and moving to shut down bitcoin exchanges.
Notably, Vincent said mining interest in Quebec began to tick upward significantly last fall after these moves by China.
He told CoinDesk:
"They don’t say it like that, but the fact that the rush of the demand came at pretty much the same time they were having problems in their previous jurisdiction, we could think there was a correlation."
These concerns, along with a steady flow of reports about mining equipment seizures, kidnappings and game-playing by corrupt public officials in places like Venezuela, could make setting up shop in places where these risks are minimal more important than ever for mining operators.
A good problem
While Hydro Quebec is still, admittedly, trying to fully grasp this new class of customers, it’s been more than willing to roll out the welcome mat for them because of the enormity of the requests, not to mention the 24/7 nature of their operations.
To show mining operation's scale, Vincent compared them to Hydro Quebec's other customers.
Its smallest commercial customers, such as the Montreal Canadiens’ hockey arena, require five megawatts of electricity and a typical data center requires 30 to 60 megawatts. By contrast, "the top-three to top-five miners in world, most of them are talking to us, and the demand that they have right now is around 200 to 300 megawatts," he said. "It’s huge."
But with an industry as volatile as cryptocurrency, nothing is fully set in stone, and as a risk-averse, publicly owned utility, Hydro Quebec is minimizing its exposure by requiring miners to foot the upfront cost of the power connection and arrange a line of credit from a third party large enough to offset any losses in the event of something dire.
"The question for us is: is this a trend that will continue to stay at least as strong as it is right now?" Vincent said.
But for now, the biggest problem facing Hydro Quebec is finding enough buildings and locations that are suitable to be used as mining farms, as well as hiring more people who can help meet all of the requests from these types of potential clients, as quickly as they are coming in.
"[The miners] have this impression that they’re losing money every day, so they’re asking for big buildings with big interconnections and they want it tomorrow," Vincent said, concluding:
"We have the capacity, but we’re not used to having so much big demand like this. It’s a good problem to have."
Quebec flag image via Shutterstock
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Thoughts on my culminating analysis of Russia's involvement in the U.S elections?

It has been a running theme lately that the U.S. government blaming Russia for the DNC/Podesta leaks is an attempt at deflection and is false. In the past few days, however, some very interesting pieces of information have come out from three different well-respected cybersecurity companies tasked with investigating the leaks or the groups behind these leaks. These companies are CrowsdStrike, Symantec, and SecureWorks. I think it is important that we cast away the media's non-technical analyses and go straight to the source.
The proof is that the hackers used Bitly to mask the malicious URL and trick people into thinking the URL was legitimate. They made two mistakes, however.
First, they accidentally left two of their Bitly accounts public, rather than setting them to private. This allowed security researchers to view some general account information, like what URLs were shortened and what they were changed to.
Second, they used Gmail's official numeric ID for each person inside of their maliciously crafted URLs. This allowed cybersecurity researchers to find out exactly who had been targeted.
The founder of CrowdStrike is a Russian-American and his company has been tasked with investigating the DNC/Podesta leaks. He blames Mother Russia. Relevant excerpts:
Alperovitch is the thirty-six-year-old cofounder of the cybersecurity firm CrowdStrike, and late the previous night, his company had been asked by the Democratic National Committee to investigate a possible breach of its network. A CrowdStrike security expert had sent the DNC a proprietary software package, called Falcon, that monitors the networks of its clients in real time. Falcon "lit up," the email said, within ten seconds of being installed at the DNC: Russia was in the network.
Alperovitch, a slight man with a sharp, quick demeanor, called the analyst who had emailed the report. "Are we sure it's Russia?" he asked.
The analyst said there was no doubt. Falcon had detected malicious software, or malware, that was stealing data and sending it to the same servers that had been used in a 2015 attack on the German Bundestag. The code and techniques used against the DNC resembled those from earlier attacks on the White House and the State Department. The analyst, a former intelligence officer, told Alperovitch that Falcon had identified not one but two Russian intruders: Cozy Bear, a group CrowdStrike's experts believed was affiliated with the FSB, Russia's answer to the CIA; and Fancy Bear, which they had linked to the GRU, Russian military intelligence.
Alperovitch then called Shawn Henry, a tall, bald fifty-four-year-old former executive assistant director at the FBI who is now CrowdStrike's president of services. Henry led a forensics team that retraced the hackers' steps and pieced together the pathology of the breach. Over the next two weeks, they learned that Cozy Bear had been stealing emails from the DNC for more than a year. Fancy Bear, on the other hand, had been in the network for only a few weeks. Its target was the DNC research department, specifically the material that the committee was compiling on Donald Trump and other Republicans. Meanwhile, a CrowdStrike group called the Overwatch team used Falcon to monitor the hackers, a process known as shoulder-surfing.
For the next two days, three CrowdStrike employees worked inside DNC headquarters, replacing the software and setting up new login credentials using what Alperovitch considers to be the most secure means of choosing a password: flipping through the dictionary at random. (After this article was posted online, Alperovitch noted that the passwords included random characters in addition to the words.) The Overwatch team kept an eye on Falcon to ensure there were no new intrusions. On Sunday night, once the operation was complete, Alperovitch took his team to celebrate at the Brazilian steakhouse Fogo de Chão.
...
Aperovitch's June 14 blog post garnered so much media attention that even its ebullient author felt slightly overwhelmed. Inevitably there were questions about the strange names his company had given the Russian hackers. As it happened, "Fancy Bear" and "Cozy Bear" were part of a coding system Alperovitch had created. Animals signified the hackers' country of origin: Russians were bears, Chinese were pandas, Iranians were kittens, and North Koreans were named for the chollima, a mythical winged horse. By company tradition, the analyst who discovers a new hacker gets to choose the first part of the nickname. Cozy Bear got its nickname because the letters coz appeared in its malware code. Fancy Bear, meanwhile, used malware that included the word Sofacy, which reminded the analyst who found it of the Iggy Azalea song "Fancy."
The day after the media maelstrom, the reporters were back with less friendly questions: Had Alperovitch gotten his facts right? Was he certain Russia was behind the DNC hacks? The doubts were prompted by the appearance of a blogger claiming to be from Eastern Europe who called himself Guccifer 2.0. Guccifer said that the breach was his, not Russia's. "DNC'S servers hacked by a lone hacker," he wrote in a blog post that included stolen files from the DNC. "I guess CrowdStrike customers should think twice about company's competence," Guccifer wrote. "Fuck CrowdStrike!!!!!!!!!"
an incorrect attribution in public. "Did we miss something?" he asked CrowdStrike's forensics team. Henry and his staff went back over the evidence, all of which supported their original conclusion.
Alperovitch had also never seen someone claim to be the only intruder on a site. "No hacker goes into the network and does a full forensic investigation," he told me. Being called out, he said, was "very shocking. It was clearly an attack on us as well as on the DNC."
Alperovitch initially thought that the leaks were standard espionage and that Guccifer's attacks on CrowdStrike were just a noisy reaction to being busted. "I thought, Okay, they got really upset that they were caught," he said. But after documents from the DNC continued to leak, Alperovitch decided the situation was far worse than that. He concluded that the Russians wanted to use the leaked files to manipulate U. S. voters—a first. "It hit me that, holy crap, this is an influence operation. They're actually trying to inject themselves into the election," he said. "I believe that we may very well wake up on the morning the day after the election and find statements from Russian adversaries saying, 'Do not trust the result.' "
...
Days later, Alperovitch got a call from a Reuters reporter asking whether the Democratic Congressional Campaign Committee had been hacked. CrowdStrike had, in fact, been working on a breach at the DCCC; once again, Alperovitch believed that Russia was responsible. Now, however, he suspected that only Fancy Bear was involved. A lawyer for the DCCC gave Alperovitch permission to confirm the leak and to name Russia as the suspected author.
Two weeks later, files from the DCCC began to appear on Guccifer 2.0's website. This time he released information about Democratic congressional candidates who were running close races in Florida, Ohio, Illinois, and Pennsylvania. On August 12, he went further, publishing a spreadsheet that included the personal email addresses and phone numbers of nearly two hundred Democratic members of Congress.
...
Alperovitch's friends in government told him privately that an official attribution so close to the election would look political. If the government named Russia, it would be accused of carrying water for Hillary Clinton. The explanations upset Alperovitch. The silence of the American government began to feel both familiar and dangerous. "It doesn't help us if two years from now someone gets indicted," he said. After Michelle Obama's passport was published online, on September 22, Alperovitch threw up his hands in exasperation. "That is Putin giving us the finger," he told me.
Source: The Russian Expat Leading the Fight to Protect America
The guy responsible for ousting Stuxnet as being an American/Israeli cyberworm (no friend of the U.S. government/establishment) also says that his company, Symantec, has found that Russia was responsible for the leaks:
It is pretty clear judging by the indicators of compromise [IOCs]. The binaries that were used to hack the DNC as well as Podesta’s email as well as some other Democratic campaign folks, those IOCs match binaries and also infrastructure that was used in attacks that were previously recorded by others as having Russian origin. That much we can confirm. So if you believe other people’s—primarily government’s—attribution that those previous attacks were Russian, then these attacks are definitely connected. We’re talking about the same binaries, the same tools, the same infrastructure.
We’ve analyzed the tools, the binaries, and the infrastructure that was used in the attack, and from that we can confirm that it’s connected to a group that has two names. One is Sofacy, or “Cozy Bear,” and The Dukes, which is also known as “Fancy Bear.” From the binary analysis point of view, I can tell you that the activities of these attackers have been during Russian working hours, either centered on UTC+3 or UTC+4; they don’t work Russian holidays; they work Monday to Friday; there are language identifiers inside that are Russian; when you look at all the victim profiles they would be in interest to the Russian nation-state. So all of that stuff fits the profile. Now, could all those things be false flags? Sure. Other government entities obviously have come out and said it is the Russian state, and the binary forensics would definitely match that.
There was another attack that happened in the Ukraine. So in December, in the Ukraine, all the power went out to about 260,000 households, or customers. They basically infiltrated the power company, got access to the machines that controlled the power, they flipped the computer switches off and shut down the power, and then they began to wipe all the machines and devices—overriding the hard drives and trashing the machines so that they couldn’t be started up again, or so that the switches couldn’t come on again. Ukrainians were able to get power back after six hours by switching to manual mode. They went off their computer monitor mode and physically flipped the switches to bring the power back up. What’s interesting about that case is the fact that they were more behind technologically actually helped them. Something very similar could easily happen in the U.S. and we’re much more beholden to computing infrastructure here, so our ability to switch to manual mode here would be much more difficult.
Is there linkage between the DNC and Podesta hacks and the 2014 State Department hacks that were also believed to be carried out by Russia?
Yeah, these are being conducted by the same groups. We know that from the IOCs—by looking at the tools they use and the infrastructure they use.
Many of these attacks were happening prior to the nomination of Trump. Based on that theory, people believe that there was a general plan for disruption, and it may be the case now that the easiest and best way to do so is in the manner you speak, but these attacks did not just start happening post-Trump’s nomination. So in that sense, there is a feeling that it’s not a very Trump-specific activity versus an election disruption activity. This is the easiest way for them to disrupt the election.
Source: Cybersecurity Expert: Proof Russia Behind DNC, Podesta Hacks
Another cybersecurity company, SecureWorks, has published some interesting blogposts about all this:
In mid-2015, CTU researchers discovered TG-4127 using the accoounts-google . com domain in spearphishing attacks targeting Google Account users. The domain was used in a phishing URL submitted to Phishtank, a website that allows users to report phishing links (see Figure 1).
Figure 1. Example of accoounts-google . com used in a phishing URL.
Recipients who clicked the link were presented with a fake Google Account login page (see Figure 2). The threat actors could use entered credentials to access the contents of the associated Gmail account.
Figure 2. Fake Google Account login page.
Encoded target details
Analysis of the phishing URL revealed that it includes two Base64-encoded values (see Figure 3). The decoded Base64 values (see Table 1) match the Gmail account and its associated Google Account username. If a target clicks the phishing link, the username field of the displayed fake Google Account login page is prepopulated with the individual’s email address.
Figure 3. Spearphishing URL.
Table 1. Decoded Base64 values from the phishing URL used by TG-4127.
Use of the Bitly URL-shortening service
A Bitly URL was uploaded to Phishtank at almost the same time as the original spearphishing URL (see Figure 4).
Figure 4. Bitly phishing URL submitted at same time as accoounts-google . com phishing URL.
Using a tool on Bitly’s website, CTU researchers determined that the Bitly URL redirected to the original phishing URL (see Figure 5). Analysis of activity associated with the Bitly account used to create the shortened URL revealed that it had been used to create more than 3,000 shortened links used to target more than 1,800 Google Accounts.
Figure 5. Link-shortener page for bit.ly/1PXQ8zP that reveals the full URL.
Target analysis
CTU researchers analyzed the Google Accounts targeted by TG-4127 to gain insight about the targets and the threat group’s intent.
Focus on Russia and former Soviet states
Most of the targeted accounts are linked to intelligence gathering or information control within Russia or former Soviet states. The majority of the activity appears to focus on Russia’s military involvement in eastern Ukraine; for example, the email address targeted by the most phishing attempts (nine) was linked to a spokesperson for the Ukrainian prime minister. Other targets included individuals in political, military, and diplomatic positions in former Soviet states, as well as journalists, human rights organizations, and regional advocacy groups in Russia.
Other targets worldwide
Analysis of targeted individuals outside of Russia and the former Soviet states revealed that they work in a wide range of industry verticals (see Figure 6). The groups can be divided into two broad categories:
TG-4127 likely targeted the groups in the first category because they criticized Russia. The groups in the second category may have information useful to the Russian government.
Figure 6. TG-4127 targeting outside of Russia and former Soviet states.
Authors and journalists
More than half (53%) of the targeted authors and journalists are Russia or Ukraine subject matter experts (see Figure 7). It is likely that the Russian state has an interest in how it is portrayed in the media. U.S.-based military spouses who wrote online content about the military and military families were also targeted. The threat actors may have been attempting to learn about broader military issues in the U.S., or gain operational insight into the military activity of the target’s spouse.
Figure 7. Subject matter expertise of authors and journalists targeted by TG-4127.
Government supply chain
CTU researchers identified individuals who were likely targeted due to their position within the supply chain of organizations of interest to TG-4127 (e.g., defense and government networks). Figure 8 shows the distribution by category. The targets included a systems engineer working on a military simulation tool, a consultant specializing in unmanned aerial systems, an IT security consultant working for NATO, and a director of federal sales for the security arm of a multinational technology company. The threat actors likely aimed to exploit the individuals’ access to and knowledge of government clients’ information.
Figure 8. Categories of supply chain targets.
Government / military personnel
TG-4127 likely targeted current and former military and government personnel for potential operational insight gained from access to their personal communications. Most of the activity focused on individuals based in the U.S. or working in NATO-linked roles (see Figure 9).
Figure 9. Nation or organization of government/military targets.
TG-4127 targeted high-profile Syrian rebel leaders, including a leader of the Syrian National Coalition. Russian forces have supported Syrian President Bashar al-Assad’s regime since September 2015, so it is likely the threat actors are seeking to gain intelligence on rebel forces to assist Russian and Assad regime military operations.
Success of the phishing campaign
CTU researchers analyzed 4,396 phishing URLs sent to 1,881 Google Accounts between March and September, 2015. More than half (59%) of the URLs were accessed, suggesting that the recipients at least opened the phishing page. From the available data, it is not possible to determine how many of those Google Accounts were compromised. Most of the targeted accounts received multiple phishing attempts, which may indicate that previous attempts had been unsuccessful. However, 35% of accounts that accessed the malicious link were not subject to additional attempts, possibly indicating that the compromise was successful.
Of the accounts targeted once, CTU researchers determined that 60% of the recipients clicked the malicious Bitly. Of the accounts that were targeted more than once, 57% of the recipients clicked the malicious link in the repeated attempts. These results likely encourage threat actors to make additional attempts if the initial phishing email is unsuccessful.
Source: Threat Group-4127 Targets Google Accounts
Here's another article by SecureWorks:
Spearphishing details
The short links in the spearphishing emails redirected victims to a TG-4127-controlled URL that spoofed a legitimate Google domain. A Base64-encoded string containing the victim's full email address is passed with this URL, prepopulating a fake Google login page displayed to the victim. If a victim enters their credentials, TG-4127 can establish a session with Google and access the victim's account. The threat actors may be able to keep this session alive and maintain persistent access.
Hillary for America
TG-4127 exploited the Hillary for America campaign's use of Gmail and leveraged campaign employees' expectation of the standard Gmail login page to access their email account. When presented with TG-4127's spoofed login page (see Figure 1), victims might be convinced it was the legitimate login page for their hillaryclinton.com email account.
Figure 1. Example of a TG-4127 fake Google Account login page.
CTU researchers observed the first short links targeting hillaryclinton.com email addresses being created in mid-March 2016; the last link was created in mid-May. During this period, TG-4127 created 213 short links targeting 108 email addresses on the hillaryclinton.com domain. Through open-source research, CTU researchers identified the owners of 66 of the targeted email addresses. There was no open-source footprint for the remaining 42 addresses, suggesting that TG-4127 acquired them from another source, possibly other intelligence activity.
The identified email owners held a wide range of responsibilities within the Hillary for America campaign, extending from senior figures to junior employees and the group mailboxes for various regional offices. Targeted senior figures managed communications and media affairs, policy, speech writing, finance, and travel, while junior figures arranged schedules and travel for Hillary Clinton's campaign trail. Targets held the following titles:
Publicly available Bitly data reveals how many of the short links were clicked, likely by a victim opening a spearphishing email and clicking the link to the fake Gmail login page. Only 20 of the 213 short links have been clicked as of this publication. Eleven of the links were clicked once, four were clicked twice, two were clicked three times, and two were clicked four times.
Democratic National Committee
CTU researchers do not have evidence that these spearphishing emails are connected to the DNC network compromise that was revealed on June 14. However, a coincidence seems unlikely, and CTU researchers suspect that TG-4127 used the spearphishing emails or similar techniques to gain an initial foothold in the DNC network.
Personal email accounts
CTU researchers identified TG-4127 targeting 26 personal gmail.com accounts belonging to individuals linked to the Hillary for America campaign, the DNC, or other aspects of U.S. national politics. Five of the individuals also had a hillaryclinton.com email account that was targeted by TG-4127. Many of these individuals held communications, media, finance, or policy roles. They include the director of speechwriting for Hillary for America and the deputy director office of the chair at the DNC. TG-4127 created 150 short links targeting this group. As of this publication, 40 of the links have been clicked at least once.
Related activity and implications
Although the 2015 campaign did not focus on individuals associated with U.S. politics, open-source evidence suggests that TG-4127 targeted individuals connected to the U.S. White House in early 2015. The threat group also reportedly targeted the German parliament and German Chancellor Angela Merkel's Christian Democratic Union party. CTU researchers have not observed TG-4127 use this technique (using Bitly short links) to target the U.S. Republican party or the other U.S. presidential candidates whose campaigns were active between mid-March and mid-May.
Source: Threat Group-4127 Targets Hillary Clinton Presidential Campaign
Read these two articles for more context:
How Hackers Broke Into John Podesta and Colin Powell’s Gmail Accounts
How Russia Pulled Off the Biggest Election Hack in U.S. History
Guccifer2.0, The Shadow Brokers, and DCLeaks, who have all leaked U.S. documents/cyberweapons, love talking about the "U.S. elite" and "corruption" in America, along with saying "the elections are rigged." I wonder why these people suddenly became so interested in the U.S. election?
Regardless, we know from the Bit.ly victim profiles that Podesta, the DNC, Ukrainian/Russian journalists, Bellingcat and other enemies of Russia were targeted by these groups. This also means that those targeted by DCLeaks and Guccifer2.0 were the same people, and that the aforementioned entities are actually one.
Why would they lie about being separate groups?
Lastly, I have gone through all the public statements made by these groups, by going through their TwitteTumblMedium/WordPress/web posts. Here are some of the comments made by DCLeaks, Guccifer2.0 and The Shadow Brokers. Tell me if you notice a common theme:
DCLeaks
Known for hacking the emails of former Secretary of State Colin Powell and former NATO General Breedlove, as well as Soros' OSF intranet documents.
George Soros is a Hungarian-American business magnate, investor, philanthropist, political activist and author who is of Hungarian-Jewish ancestry and holds dual citizenship. He drives more than 50 global and regional programs and foundations. Soros is named an architect and a sponsor of almost every revolution and coup around the world for the last 25 years. The USA is thought to be a vampire due to him and his puppets, not a lighthouse of freedom and democracy. His minions spill blood of millions and millions of people just to make him even more rich. Soros is an oligarch sponsoring the Democratic party, Hillary Clinton, hundreds of politicians all over the world. This website is designed to let everyone inside George Soros’ Open Society Foundation and related organisations. We present you the workplans, strategies, priorities and other activities of Soros. These documents shed light on one of the most influential network operating worldwide.
Source: http://soros.dcleaks.com
Welcome another cog in the U.S. political and military machine. CAPT Pistole's emails released
documents reveal the billionaire’s attempt to organize a “national movement” to create a federalized police force.
Looks like Clinton's staff doesn't care about security.Wonder from whom did they learn it..
FBI hq is a great place for club meeting especially when Clinton is under investigation
A further look at their Twitter account reveals that they mostly re-tweet WikiLeaks/RT/PressTV, hate Clinton, like Trump, love talking about the email scandal, post conspiracy theories about Mark Zuckerberg, exclusively target Russia's enemies (like former NATO General Breedlove, Soros, Colin Powell, etc,.), defend Russia from being attacked, and have a penchant for focusing on news portraying the U.S. elections/debates as "rigged":
Check the private correspondence between Philip Breedlove and Harlan Ullman
Check restricted documents of George Soros’ Open Society Foundation
Check restricted documents leaked from Hillary Clinton's presidential campaign staff
Emails show Obama saw US involvement in Russia talks as a 'threat'
'Gen. plotted against Obama on Russia'
Check George Soros's OSF plans to counter Russian policy and traditional values
Check Soros internal files
A New McCarthyism: @ggreenwald on Clinton Camp's Attempts to Link @wikileaks, Trump & @DrJillStein to Russia
Source: https://twitter.com/dcleaks_
Guccifer 2.0
Known for hacking the DNC and DCCC.
Together we’ll be able to throw off the political elite, the rich clans that exploit the world!
Fuck the lies and conspirators like DNC!!!
Who inspires me? Not the guys like Rambo or Terminator or any other like them. The world has changed. Assange, Snowden, and Manning are the heroes of the computer age. They struggle for truth and justice; they struggle to make our world better, more honest and clear. People like them make us hope for tomorrow. They are the modern heroes, they make history right now.
Marcel Lazar is another hero of mine. He inspired me and showed me the way. He proved that even the powers that be have weak points.
Anyway it seems that IT-companies and special services can’t realize that people like me act just following their ideas but not for money. They missed the bus with Assange and Snowden, they are not ready to live in the modern world. They are not ready to meet people who are smart and brave, who are eager to fight for their ideals, who can sacrifice themselves for the better future. Working for a boss makes them slow I suppose. Do you need more proof?
don’t want to disappoint anyone, but none of the candidates has my sympathies. Each of them has skeletons in the closet and I think people have a right to know the truth about the politicians.
As for me, I see great differences between Hillary Clinton and Donald Trump. Hillary seems so much false to me, she got all her money from political activities and lobbying, she is a slave of moguls, she is bought and sold. She never had to work hard and never risked everything she had. Her words don’t meet her actions. And her collusion with the DNC turned the primaries into farce.
Opposite to her, Donald Trump has earned his money himself. And at least he is sincere in what he says. His position is straight and clear.
Anyway that doesn’t mean that I support him. I’m totally against his ideas about closing borders and deportation policy. It’s a nonsense, absolute bullshit.
I have nothing to say about Bernie Sanders. It seems he never had a chance to win the nomination as the Democratic Party itself stood against him!
Here are the DCCC docs on Florida: reports, memos, briefings, dossiers, etc. You can have a look at who you are going to elect now. It may seem the congressional primaries are also becoming a farce.
As you can see, the private server of the Clinton clan contains docs and donors lists of the Democratic committees, PACs, etc. Does it surprise you?
It looks like big banks and corporations agreed to donate to the Democrats a certain percentage of the allocated TARP funds.
I found out something interesting in emails between DNC employees and Hillary Clinton campaign staff. Democrats prepare a new provocation against Trump. After Trump sent his financial report in May it appeared on DNC servers at once. DNC rushed to analyze it and asked the Jones Mandel company to make an effective investigation. I won’t be surprised if some mainstream media like the New York Times or CNN publish soon Trump’s financial docs. No doubt who could give them.
I’d like to warn you that the Democrats may rig the elections on November 8. This may be possible because of the software installed in the FEC networks by the large IT companies.
As I’ve already said, their software is of poor quality, with many holes and vulnerabilities.
I have registered in the FEC electronic system as an independent election observer; so I will monitor that the elections are held honestly.
I also call on other hackers to join me, monitor the elections from inside and inform the U.S. society about the facts of electoral fraud.
Source: https://guccifer2.wordpress.com
Here and here he claims that he's the source of WikiLeaks' DNC documents.
He frequently re-tweets WikiLeaks, just like DCLeaks. He re-tweets and follows conspiracy theory outlets like Alex Jones and Roger Stone, just like DCLeaks followed RT and PressTV. Of course, he sprang back to life two days before Election Day, to complain about "Democrats rigging the election." I thought he didn't favour any political party?
Source: https://twitter.com/GUCCIFER_2
The Shadow Brokers
Known for leaking the NSA's elite hacking entity's, Equation Group's, cyberweapons.
!! Attention Wealthy Elites !!!
We have final message for “Wealthy Elites”. We know what is wealthy but what is Elites? Elites is making laws protect self and friends, lie and fuck other peoples. Elites is breaking laws, regular peoples go to jail, life ruin, family ruin, but not Elites. Elites is breaking laws, many peoples know Elites guilty, Elites call top friends at law enforcement and government agencies, offer bribes, make promise future handjobs, (but no blowjobs). Elites top friends announce, no law broken, no crime commit. Reporters (not call journalist) make living say write only nice things about Elites, convince dumb cattle, is just politics, everything is awesome, check out our ads and our prostitutes. Then Elites runs for president. Why run for president when already control country like dictatorship? What this have do with fun Cyber Weapons Auction? We want make sure Wealthy Elite recognizes the danger cyber weapons, this message, our auction, poses to their wealth and control. Let us spell out for Elites. Your wealth and control depends on electronic data. You see what “Equation Group” can do. You see what cryptolockers and stuxnet can do. You see free files we give for free. You see attacks on banks and SWIFT in news. Maybe there is Equation Group version of cryptolocker+stuxnet for banks and financial systems? If Equation Group lose control of cyber weapons, who else lose or find cyber weapons? If electronic data go bye bye where leave Wealthy Elites? Maybe with dumb cattle? “Do you feel in charge?” Wealthy Elites, you send bitcoins, you bid in auction, maybe big advantage for you?
Source: https://archive.is/WkT7o#selection-337.0-341.1595
TheShadowBrokers is having special trick or treat for Amerikanskis tonight. But first questions.
Why is DirtyGrandpa threating CIA cyberwar with Russia? Why not threating with NSA or CyberCommand? CIA is cyber B-Team, yes? Where is cyber A-Team? Maybe threating is not being for external propaganda? Maybe is being for internal propaganda? Oldest control trick in book, yes? Waving flag, blaming problems on external sources, not taking responsibility for failures. But neverminding, hacking DNC is way way most important than EquationGroup losing capabilities. Amerikanskis is not knowing USSA cyber capabilities is being screwed? Where is being “free press”? Is ABC, NBC, CBS, FOX negligent in duties of informing Amerikanskis? Guessing “Free Press” is not being “Free as in free beer” or “Free as in free of government influence?
Let us be speaking regarding corruption. If Peoples#1 is having $1.00 and Peoples#2 is having $1000.00 which peoples is having more money? Which peoples is having more spending power? Voter$1 is giving $1 to politician and Voter$1000 is giving $1000 to politician, which voters is having more political power? Is both voters having equal political power? “one person, one vote”? Politicians, lobbyist, media, even SCOTUS (supreme court) is saying this is being true, money is not corrupting. In binary world, maybe. But world is not being binary, is it? What about peoples#3, VoterUndecided? VoterUndecided is giving no moneys and no votes. Politician is needing money for campaign to buy advertising, positive media stories, advisors, pollsters, operatives to be making VoterUndecided vote for politician. Political fundrasing, now which voter is having more political power? VoterUndecided votes for politician and politician wins. Re-election is coming. Government budget decision is required. Voter$1 is wanting politician to be spending taxes on education for making children into great thinkers, leaders, scientists. Voter$1000 is shareholder of defense & intelligence company is wanting politician spending taxes on spying and war to be making benefit self, for great profit. Political favors, now, which voter is having more political power? Did theshadowbrokers lose Amerikanskis? Amerikanskis is still thinking “one person, one vote”? Money isn’t corrupting elections, politics, govenments?
USSA elections is coming! 60% of Amerikansky never voting. Best scenario is meaning half of remaining red or blue fanatics or 20% of the most fanatical is picking USSA government? A great power. A free country. A good-doer. TheShadowBrokers is having suggestion. On November 8th, instead of not voting, maybe be stopping the vote all together? Maybe being grinch who stopped election from coming? Maybe hacking election is being the best idea? #hackelection2016. If peoples is not being hackers, then #disruptelection2016, #disruptcorruption2016. Maybe peoples not be going to work, be finding local polling places and protesting, blocking , disrupting , smashing equipment, tearing up ballots? The wealthy elites is being weakest during elections and transition of power. Is being why USSA is targeting elections in foreign countries. Don’t beleiving? Remembering Iran elections? Rembering stuxnet? Maybe is not Russia hacking election, maybe is being payback from Iran?
Ok peoples theshadowbrokers is promising you a trick or treating, here it is
https://mega.nz/#F!D1Q2EQpD!Lb09shM5XMZsQ_5_E1l4eQ https://yadi.sk/d/NCEyJQsBxrQxz
Password = payus
This is being equation group pitchimpair (redirector) keys, many missions into your networks is/was coming from these ip addresses. Is being unfortunate no peoples is already owning eqgrp_auction_file. Auction file is having tools for to making connect to these pitchimpairs. Maybe tools no more installed? Maybe is being cleaned up? To peoples is being owner of pitchimpair computers, don’t be looking for files, rootkit will self destruct. Be making cold forensic image. @GCHQ @Belgacom TheShadowBrokers is making special effort not to using foul language, bigotry, or making any funny. Be seeing if NBC, ABC, CBS, FOX is making stories about now? Maybe political hacks is being more important?
How bad do you want it to get? When you are ready to make the bleeding stop, payus, so we can move onto the next game. The game where you try to catch us cashing out! Swag us out!
Source: https://medium.com/@shadowbrokerss/message-5-trick-or-treat-e43f946f93e6#.9cfljtkx3
Again, the usual old spiel of brave hackers fighting "USSA"/"Amerikansky" "corruption". It's gotten quite repetitive by now.
Bizarrely, they began posting Bill Clinton and Lorreta Lynch erotic fan fiction at some point:
https://medium.com/@shadowbrokerss/begin-pgp-signed-message-hash-sha1-2a9aa03838a4#.896d0iqpi
submitted by MangekyouSharinganKa to AskTrumpSupporters [link] [comments]

Culminating Analysis of DNC/DCCC/Soros/Colin-Powell/NATO-General-Breedlove/NSA-Equation-Group/Podesta Leaks and Hacks

It has been a running theme lately that the U.S. government blaming Russia for the DNC/Podesta leaks is an attempt at deflection and is false. In the past few days, however, some very interesting pieces of information have come out from three different well-respected cybersecurity companies tasked with investigating the leaks or the groups behind these leaks. These companies are CrowsdStrike, Symantec, and SecureWorks. I think it is important that we cast away the media's non-technical analyses and go straight to the source.
The founder of CrowdStrike is a Russian-American and his company has been tasked with investigating the DNC/Podesta leaks. He blames Mother Russia. Relevant excerpts:
At six o'clock on the morning of May 6, Dmitri Alperovitch woke up in a Los Angeles hotel to an alarming email. Alperovitch is the thirty-six-year-old cofounder of the cybersecurity firm CrowdStrike, and late the previous night, his company had been asked by the Democratic National Committee to investigate a possible breach of its network. A CrowdStrike security expert had sent the DNC a proprietary software package, called Falcon, that monitors the networks of its clients in real time. Falcon "lit up," the email said, within ten seconds of being installed at the DNC: Russia was in the network.
Alperovitch, a slight man with a sharp, quick demeanor, called the analyst who had emailed the report. "Are we sure it's Russia?" he asked.
The analyst said there was no doubt. Falcon had detected malicious software, or malware, that was stealing data and sending it to the same servers that had been used in a 2015 attack on the German Bundestag. The code and techniques used against the DNC resembled those from earlier attacks on the White House and the State Department. The analyst, a former intelligence officer, told Alperovitch that Falcon had identified not one but two Russian intruders: Cozy Bear, a group CrowdStrike's experts believed was affiliated with the FSB, Russia's answer to the CIA; and Fancy Bear, which they had linked to the GRU, Russian military intelligence.
Alperovitch then called Shawn Henry, a tall, bald fifty-four-year-old former executive assistant director at the FBI who is now CrowdStrike's president of services. Henry led a forensics team that retraced the hackers' steps and pieced together the pathology of the breach. Over the next two weeks, they learned that Cozy Bear had been stealing emails from the DNC for more than a year. Fancy Bear, on the other hand, had been in the network for only a few weeks. Its target was the DNC research department, specifically the material that the committee was compiling on Donald Trump and other Republicans. Meanwhile, a CrowdStrike group called the Overwatch team used Falcon to monitor the hackers, a process known as shoulder-surfing.
Ultimately, the teams decided it was necessary to replace the software on every computer at the DNC. Until the network was clean, secrecy was vital. On the afternoon of Friday, June 10, all DNC employees were instructed to leave their laptops in the office. Alperovitch told me that a few people worried that Hillary Clinton, the presumptive Democratic nominee, was clearing house. "Those poor people thought they were getting fired," he says.
For the next two days, three CrowdStrike employees worked inside DNC headquarters, replacing the software and setting up new login credentials using what Alperovitch considers to be the most secure means of choosing a password: flipping through the dictionary at random. (After this article was posted online, Alperovitch noted that the passwords included random characters in addition to the words.) The Overwatch team kept an eye on Falcon to ensure there were no new intrusions. On Sunday night, once the operation was complete, Alperovitch took his team to celebrate at the Brazilian steakhouse Fogo de Chão.
...
Aperovitch's June 14 blog post garnered so much media attention that even its ebullient author felt slightly overwhelmed. Inevitably there were questions about the strange names his company had given the Russian hackers. As it happened, "Fancy Bear" and "Cozy Bear" were part of a coding system Alperovitch had created. Animals signified the hackers' country of origin: Russians were bears, Chinese were pandas, Iranians were kittens, and North Koreans were named for the chollima, a mythical winged horse. By company tradition, the analyst who discovers a new hacker gets to choose the first part of the nickname. Cozy Bear got its nickname because the letters coz appeared in its malware code. Fancy Bear, meanwhile, used malware that included the word Sofacy, which reminded the analyst who found it of the Iggy Azalea song "Fancy."
The day after the media maelstrom, the reporters were back with less friendly questions: Had Alperovitch gotten his facts right? Was he certain Russia was behind the DNC hacks? The doubts were prompted by the appearance of a blogger claiming to be from Eastern Europe who called himself Guccifer 2.0. Guccifer said that the breach was his, not Russia's. "DNC'S servers hacked by a lone hacker," he wrote in a blog post that included stolen files from the DNC. "I guess CrowdStrike customers should think twice about company's competence," Guccifer wrote. "Fuck CrowdStrike!!!!!!!!!"
an incorrect attribution in public. "Did we miss something?" he asked CrowdStrike's forensics team. Henry and his staff went back over the evidence, all of which supported their original conclusion.
Alperovitch had also never seen someone claim to be the only intruder on a site. "No hacker goes into the network and does a full forensic investigation," he told me. Being called out, he said, was "very shocking. It was clearly an attack on us as well as on the DNC."
Alperovitch initially thought that the leaks were standard espionage and that Guccifer's attacks on CrowdStrike were just a noisy reaction to being busted. "I thought, Okay, they got really upset that they were caught," he said. But after documents from the DNC continued to leak, Alperovitch decided the situation was far worse than that. He concluded that the Russians wanted to use the leaked files to manipulate U. S. voters—a first. "It hit me that, holy crap, this is an influence operation. They're actually trying to inject themselves into the election," he said. "I believe that we may very well wake up on the morning the day after the election and find statements from Russian adversaries saying, 'Do not trust the result.' "
...
Days later, Alperovitch got a call from a Reuters reporter asking whether the Democratic Congressional Campaign Committee had been hacked. CrowdStrike had, in fact, been working on a breach at the DCCC; once again, Alperovitch believed that Russia was responsible. Now, however, he suspected that only Fancy Bear was involved. A lawyer for the DCCC gave Alperovitch permission to confirm the leak and to name Russia as the suspected author.
Two weeks later, files from the DCCC began to appear on Guccifer 2.0's website. This time he released information about Democratic congressional candidates who were running close races in Florida, Ohio, Illinois, and Pennsylvania. On August 12, he went further, publishing a spreadsheet that included the personal email addresses and phone numbers of nearly two hundred Democratic members of Congress.
...
Alperovitch's friends in government told him privately that an official attribution so close to the election would look political. If the government named Russia, it would be accused of carrying water for Hillary Clinton. The explanations upset Alperovitch. The silence of the American government began to feel both familiar and dangerous. "It doesn't help us if two years from now someone gets indicted," he said. After Michelle Obama's passport was published online, on September 22, Alperovitch threw up his hands in exasperation. "That is Putin giving us the finger," he told me.
Source: The Russian Expat Leading the Fight to Protect America
The guy responsible for ousting Stuxnet as being an American/Israeli cyberworm (no friend of the U.S. government/establishment) also says that his company, Symantec, has found that Russia was responsible for the leaks:
It is pretty clear judging by the indicators of compromise [IOCs]. The binaries that were used to hack the DNC as well as Podesta’s email as well as some other Democratic campaign folks, those IOCs match binaries and also infrastructure that was used in attacks that were previously recorded by others as having Russian origin. That much we can confirm. So if you believe other people’s—primarily government’s—attribution that those previous attacks were Russian, then these attacks are definitely connected. We’re talking about the same binaries, the same tools, the same infrastructure.
We’ve analyzed the tools, the binaries, and the infrastructure that was used in the attack, and from that we can confirm that it’s connected to a group that has two names. One is Sofacy, or “Cozy Bear,” and The Dukes, which is also known as “Fancy Bear.” From the binary analysis point of view, I can tell you that the activities of these attackers have been during Russian working hours, either centered on UTC+3 or UTC+4; they don’t work Russian holidays; they work Monday to Friday; there are language identifiers inside that are Russian; when you look at all the victim profiles they would be in interest to the Russian nation-state. So all of that stuff fits the profile. Now, could all those things be false flags? Sure. Other government entities obviously have come out and said it is the Russian state, and the binary forensics would definitely match that.
There was another attack that happened in the Ukraine. So in December, in the Ukraine, all the power went out to about 260,000 households, or customers. They basically infiltrated the power company, got access to the machines that controlled the power, they flipped the computer switches off and shut down the power, and then they began to wipe all the machines and devices—overriding the hard drives and trashing the machines so that they couldn’t be started up again, or so that the switches couldn’t come on again. Ukrainians were able to get power back after six hours by switching to manual mode. They went off their computer monitor mode and physically flipped the switches to bring the power back up. What’s interesting about that case is the fact that they were more behind technologically actually helped them. Something very similar could easily happen in the U.S. and we’re much more beholden to computing infrastructure here, so our ability to switch to manual mode here would be much more difficult.
Is there linkage between the DNC and Podesta hacks and the 2014 State Department hacks that were also believed to be carried out by Russia?
Yeah, these are being conducted by the same groups. We know that from the IOCs—by looking at the tools they use and the infrastructure they use.
Many of these attacks were happening prior to the nomination of Trump. Based on that theory, people believe that there was a general plan for disruption, and it may be the case now that the easiest and best way to do so is in the manner you speak, but these attacks did not just start happening post-Trump’s nomination. So in that sense, there is a feeling that it’s not a very Trump-specific activity versus an election disruption activity. This is the easiest way for them to disrupt the election.
Source: Cybersecurity Expert: Proof Russia Behind DNC, Podesta Hacks
Another cybersecurity company, SecureWorks, has published some interesting blogposts about all this:
In mid-2015, CTU researchers discovered TG-4127 using the accoounts-google . com domain in spearphishing attacks targeting Google Account users. The domain was used in a phishing URL submitted to Phishtank, a website that allows users to report phishing links (see Figure 1).
Figure 1. Example of accoounts-google . com used in a phishing URL.
Recipients who clicked the link were presented with a fake Google Account login page (see Figure 2). The threat actors could use entered credentials to access the contents of the associated Gmail account.
Figure 2. Fake Google Account login page.
Encoded target details
Analysis of the phishing URL revealed that it includes two Base64-encoded values (see Figure 3). The decoded Base64 values (see Table 1) match the Gmail account and its associated Google Account username. If a target clicks the phishing link, the username field of the displayed fake Google Account login page is prepopulated with the individual’s email address.
Figure 3. Spearphishing URL.
Table 1. Decoded Base64 values from the phishing URL used by TG-4127.
Use of the Bitly URL-shortening service
A Bitly URL was uploaded to Phishtank at almost the same time as the original spearphishing URL (see Figure 4).
Figure 4. Bitly phishing URL submitted at same time as accoounts-google . com phishing URL.
Using a tool on Bitly’s website, CTU researchers determined that the Bitly URL redirected to the original phishing URL (see Figure 5). Analysis of activity associated with the Bitly account used to create the shortened URL revealed that it had been used to create more than 3,000 shortened links used to target more than 1,800 Google Accounts.
Figure 5. Link-shortener page for bit.ly/1PXQ8zP that reveals the full URL.
Target analysis
CTU researchers analyzed the Google Accounts targeted by TG-4127 to gain insight about the targets and the threat group’s intent.
Focus on Russia and former Soviet states
Most of the targeted accounts are linked to intelligence gathering or information control within Russia or former Soviet states. The majority of the activity appears to focus on Russia’s military involvement in eastern Ukraine; for example, the email address targeted by the most phishing attempts (nine) was linked to a spokesperson for the Ukrainian prime minister. Other targets included individuals in political, military, and diplomatic positions in former Soviet states, as well as journalists, human rights organizations, and regional advocacy groups in Russia.
Other targets worldwide
Analysis of targeted individuals outside of Russia and the former Soviet states revealed that they work in a wide range of industry verticals (see Figure 6). The groups can be divided into two broad categories:
TG-4127 likely targeted the groups in the first category because they criticized Russia. The groups in the second category may have information useful to the Russian government.
Figure 6. TG-4127 targeting outside of Russia and former Soviet states.
Authors and journalists
More than half (53%) of the targeted authors and journalists are Russia or Ukraine subject matter experts (see Figure 7). It is likely that the Russian state has an interest in how it is portrayed in the media. U.S.-based military spouses who wrote online content about the military and military families were also targeted. The threat actors may have been attempting to learn about broader military issues in the U.S., or gain operational insight into the military activity of the target’s spouse.
Figure 7. Subject matter expertise of authors and journalists targeted by TG-4127.
Government supply chain
CTU researchers identified individuals who were likely targeted due to their position within the supply chain of organizations of interest to TG-4127 (e.g., defense and government networks). Figure 8 shows the distribution by category. The targets included a systems engineer working on a military simulation tool, a consultant specializing in unmanned aerial systems, an IT security consultant working for NATO, and a director of federal sales for the security arm of a multinational technology company. The threat actors likely aimed to exploit the individuals’ access to and knowledge of government clients’ information.
Figure 8. Categories of supply chain targets.
Government / military personnel
TG-4127 likely targeted current and former military and government personnel for potential operational insight gained from access to their personal communications. Most of the activity focused on individuals based in the U.S. or working in NATO-linked roles (see Figure 9).
Figure 9. Nation or organization of government/military targets.
TG-4127 targeted high-profile Syrian rebel leaders, including a leader of the Syrian National Coalition. Russian forces have supported Syrian President Bashar al-Assad’s regime since September 2015, so it is likely the threat actors are seeking to gain intelligence on rebel forces to assist Russian and Assad regime military operations.
Success of the phishing campaign
CTU researchers analyzed 4,396 phishing URLs sent to 1,881 Google Accounts between March and September, 2015. More than half (59%) of the URLs were accessed, suggesting that the recipients at least opened the phishing page. From the available data, it is not possible to determine how many of those Google Accounts were compromised. Most of the targeted accounts received multiple phishing attempts, which may indicate that previous attempts had been unsuccessful. However, 35% of accounts that accessed the malicious link were not subject to additional attempts, possibly indicating that the compromise was successful.
Of the accounts targeted once, CTU researchers determined that 60% of the recipients clicked the malicious Bitly. Of the accounts that were targeted more than once, 57% of the recipients clicked the malicious link in the repeated attempts. These results likely encourage threat actors to make additional attempts if the initial phishing email is unsuccessful.
Source: Threat Group-4127 Targets Google Accounts
Here's another article by SecureWorks:
Spearphishing details
The short links in the spearphishing emails redirected victims to a TG-4127-controlled URL that spoofed a legitimate Google domain. A Base64-encoded string containing the victim's full email address is passed with this URL, prepopulating a fake Google login page displayed to the victim. If a victim enters their credentials, TG-4127 can establish a session with Google and access the victim's account. The threat actors may be able to keep this session alive and maintain persistent access.
Hillary for America
TG-4127 exploited the Hillary for America campaign's use of Gmail and leveraged campaign employees' expectation of the standard Gmail login page to access their email account. When presented with TG-4127's spoofed login page (see Figure 1), victims might be convinced it was the legitimate login page for their hillaryclinton.com email account.
Figure 1. Example of a TG-4127 fake Google Account login page.
CTU researchers observed the first short links targeting hillaryclinton.com email addresses being created in mid-March 2016; the last link was created in mid-May. During this period, TG-4127 created 213 short links targeting 108 email addresses on the hillaryclinton.com domain. Through open-source research, CTU researchers identified the owners of 66 of the targeted email addresses. There was no open-source footprint for the remaining 42 addresses, suggesting that TG-4127 acquired them from another source, possibly other intelligence activity.
The identified email owners held a wide range of responsibilities within the Hillary for America campaign, extending from senior figures to junior employees and the group mailboxes for various regional offices. Targeted senior figures managed communications and media affairs, policy, speech writing, finance, and travel, while junior figures arranged schedules and travel for Hillary Clinton's campaign trail. Targets held the following titles:
Publicly available Bitly data reveals how many of the short links were clicked, likely by a victim opening a spearphishing email and clicking the link to the fake Gmail login page. Only 20 of the 213 short links have been clicked as of this publication. Eleven of the links were clicked once, four were clicked twice, two were clicked three times, and two were clicked four times.
Democratic National Committee
CTU researchers do not have evidence that these spearphishing emails are connected to the DNC network compromise that was revealed on June 14. However, a coincidence seems unlikely, and CTU researchers suspect that TG-4127 used the spearphishing emails or similar techniques to gain an initial foothold in the DNC network.
Personal email accounts
CTU researchers identified TG-4127 targeting 26 personal gmail.com accounts belonging to individuals linked to the Hillary for America campaign, the DNC, or other aspects of U.S. national politics. Five of the individuals also had a hillaryclinton.com email account that was targeted by TG-4127. Many of these individuals held communications, media, finance, or policy roles. They include the director of speechwriting for Hillary for America and the deputy director office of the chair at the DNC. TG-4127 created 150 short links targeting this group. As of this publication, 40 of the links have been clicked at least once.
Related activity and implications
Although the 2015 campaign did not focus on individuals associated with U.S. politics, open-source evidence suggests that TG-4127 targeted individuals connected to the U.S. White House in early 2015. The threat group also reportedly targeted the German parliament and German Chancellor Angela Merkel's Christian Democratic Union party. CTU researchers have not observed TG-4127 use this technique (using Bitly short links) to target the U.S. Republican party or the other U.S. presidential candidates whose campaigns were active between mid-March and mid-May.
Source: Threat Group-4127 Targets Hillary Clinton Presidential Campaign
Read these two articles for more context:
How Hackers Broke Into John Podesta and Colin Powell’s Gmail Accounts
How Russia Pulled Off the Biggest Election Hack in U.S. History
Guccifer2.0, The Shadow Brokers, and DCLeaks, who have all leaked U.S. documents/cyberweapons, love talking about the "U.S. elite" and "corruption" in America, along with saying "the elections are rigged." I wonder why these people suddenly became so interested in the U.S. election?
Regardless, we know from the Bit.ly victim profiles that Podesta, the DNC, Ukrainian/Russian journalists, Bellingcat and other enemies of Russia were targeted by these groups. This also means that those targeted by DCLeaks and Guccifer2.0 were the same people, and that the aforementioned entities are actually one.
Why would they lie about being separate groups?
Lastly, I have gone through all the public statements made by these groups, by going through their TwitteTumblMedium/WordPress/web posts. Here are some of the comments made by DCLeaks, Guccifer2.0 and The Shadow Brokers. Tell me if you notice a common theme:
DCLeaks
Known for hacking the emails of former Secretary of State Colin Powell and former NATO General Breedlove, as well as Soros' OSF intranet documents.
George Soros is a Hungarian-American business magnate, investor, philanthropist, political activist and author who is of Hungarian-Jewish ancestry and holds dual citizenship. He drives more than 50 global and regional programs and foundations. Soros is named an architect and a sponsor of almost every revolution and coup around the world for the last 25 years. The USA is thought to be a vampire due to him and his puppets, not a lighthouse of freedom and democracy. His minions spill blood of millions and millions of people just to make him even more rich. Soros is an oligarch sponsoring the Democratic party, Hillary Clinton, hundreds of politicians all over the world. This website is designed to let everyone inside George Soros’ Open Society Foundation and related organisations. We present you the workplans, strategies, priorities and other activities of Soros. These documents shed light on one of the most influential network operating worldwide.
Source: http://soros.dcleaks.com
Welcome another cog in the U.S. political and military machine. CAPT Pistole's emails released
documents reveal the billionaire’s attempt to organize a “national movement” to create a federalized police force.
Looks like Clinton's staff doesn't care about security.Wonder from whom did they learn it..
FBI hq is a great place for club meeting especially when Clinton is under investigation
A further look at their Twitter account reveals that they mostly re-tweet WikiLeaks/RT/PressTV, hate Clinton, like Trump, love talking about the email scandal, post conspiracy theories about Mark Zuckerberg, exclusively target Russia's enemies (like former NATO General Breedlove, Soros, Colin Powell, etc,.), defend Russia from being attacked, and have a penchant for focusing on news portraying the U.S. elections/debates as "rigged":
Check the private correspondence between Philip Breedlove and Harlan Ullman
Check restricted documents of George Soros’ Open Society Foundation
Check restricted documents leaked from Hillary Clinton's presidential campaign staff
Emails show Obama saw US involvement in Russia talks as a 'threat'
'Gen. plotted against Obama on Russia'
Check George Soros's OSF plans to counter Russian policy and traditional values
Check Soros internal files
A New McCarthyism: @ggreenwald on Clinton Camp's Attempts to Link @wikileaks, Trump & @DrJillStein to Russia
Source: https://twitter.com/dcleaks_
Guccifer 2.0
Known for hacking the DNC and DCCC.
Together we’ll be able to throw off the political elite, the rich clans that exploit the world!
Fuck the lies and conspirators like DNC!!!
Who inspires me? Not the guys like Rambo or Terminator or any other like them. The world has changed. Assange, Snowden, and Manning are the heroes of the computer age. They struggle for truth and justice; they struggle to make our world better, more honest and clear. People like them make us hope for tomorrow. They are the modern heroes, they make history right now.
Marcel Lazar is another hero of mine. He inspired me and showed me the way. He proved that even the powers that be have weak points.
Anyway it seems that IT-companies and special services can’t realize that people like me act just following their ideas but not for money. They missed the bus with Assange and Snowden, they are not ready to live in the modern world. They are not ready to meet people who are smart and brave, who are eager to fight for their ideals, who can sacrifice themselves for the better future. Working for a boss makes them slow I suppose. Do you need more proof?
don’t want to disappoint anyone, but none of the candidates has my sympathies. Each of them has skeletons in the closet and I think people have a right to know the truth about the politicians.
As for me, I see great differences between Hillary Clinton and Donald Trump. Hillary seems so much false to me, she got all her money from political activities and lobbying, she is a slave of moguls, she is bought and sold. She never had to work hard and never risked everything she had. Her words don’t meet her actions. And her collusion with the DNC turned the primaries into farce.
Opposite to her, Donald Trump has earned his money himself. And at least he is sincere in what he says. His position is straight and clear.
Anyway that doesn’t mean that I support him. I’m totally against his ideas about closing borders and deportation policy. It’s a nonsense, absolute bullshit.
I have nothing to say about Bernie Sanders. It seems he never had a chance to win the nomination as the Democratic Party itself stood against him!
Here are the DCCC docs on Florida: reports, memos, briefings, dossiers, etc. You can have a look at who you are going to elect now. It may seem the congressional primaries are also becoming a farce.
As you can see, the private server of the Clinton clan contains docs and donors lists of the Democratic committees, PACs, etc. Does it surprise you?
It looks like big banks and corporations agreed to donate to the Democrats a certain percentage of the allocated TARP funds.
I found out something interesting in emails between DNC employees and Hillary Clinton campaign staff. Democrats prepare a new provocation against Trump. After Trump sent his financial report in May it appeared on DNC servers at once. DNC rushed to analyze it and asked the Jones Mandel company to make an effective investigation. I won’t be surprised if some mainstream media like the New York Times or CNN publish soon Trump’s financial docs. No doubt who could give them.
I’d like to warn you that the Democrats may rig the elections on November 8. This may be possible because of the software installed in the FEC networks by the large IT companies.
As I’ve already said, their software is of poor quality, with many holes and vulnerabilities.
I have registered in the FEC electronic system as an independent election observer; so I will monitor that the elections are held honestly.
I also call on other hackers to join me, monitor the elections from inside and inform the U.S. society about the facts of electoral fraud.
Source: https://guccifer2.wordpress.com
Here and here he claims that he's the source of WikiLeaks' DNC documents, something that has gone unreported in the media.
He frequently re-tweets WikiLeaks, just like DCLeaks. He re-tweets and follows conspiracy theory outlets like Alex Jones and Roger Stone, just like DCLeaks followed RT and PressTV. Of course, he sprang back to life two days ago, right before Election Day, to complain about "Democrats rigging the election." I thought he didn't favour any political party?
Source: https://twitter.com/GUCCIFER_2
The Shadow Brokers
Known for leaking the NSA's elite hacking entity's, Equation Group's, cyberweapons.
!! Attention Wealthy Elites !!!
We have final message for “Wealthy Elites”. We know what is wealthy but what is Elites? Elites is making laws protect self and friends, lie and fuck other peoples. Elites is breaking laws, regular peoples go to jail, life ruin, family ruin, but not Elites. Elites is breaking laws, many peoples know Elites guilty, Elites call top friends at law enforcement and government agencies, offer bribes, make promise future handjobs, (but no blowjobs). Elites top friends announce, no law broken, no crime commit. Reporters (not call journalist) make living say write only nice things about Elites, convince dumb cattle, is just politics, everything is awesome, check out our ads and our prostitutes. Then Elites runs for president. Why run for president when already control country like dictatorship? What this have do with fun Cyber Weapons Auction? We want make sure Wealthy Elite recognizes the danger cyber weapons, this message, our auction, poses to their wealth and control. Let us spell out for Elites. Your wealth and control depends on electronic data. You see what “Equation Group” can do. You see what cryptolockers and stuxnet can do. You see free files we give for free. You see attacks on banks and SWIFT in news. Maybe there is Equation Group version of cryptolocker+stuxnet for banks and financial systems? If Equation Group lose control of cyber weapons, who else lose or find cyber weapons? If electronic data go bye bye where leave Wealthy Elites? Maybe with dumb cattle? “Do you feel in charge?” Wealthy Elites, you send bitcoins, you bid in auction, maybe big advantage for you?
Source: https://archive.is/WkT7o#selection-337.0-341.1595
TheShadowBrokers is having special trick or treat for Amerikanskis tonight. But first questions.
Why is DirtyGrandpa threating CIA cyberwar with Russia? Why not threating with NSA or CyberCommand? CIA is cyber B-Team, yes? Where is cyber A-Team? Maybe threating is not being for external propaganda? Maybe is being for internal propaganda? Oldest control trick in book, yes? Waving flag, blaming problems on external sources, not taking responsibility for failures. But neverminding, hacking DNC is way way most important than EquationGroup losing capabilities. Amerikanskis is not knowing USSA cyber capabilities is being screwed? Where is being “free press”? Is ABC, NBC, CBS, FOX negligent in duties of informing Amerikanskis? Guessing “Free Press” is not being “Free as in free beer” or “Free as in free of government influence?
Let us be speaking regarding corruption. If Peoples#1 is having $1.00 and Peoples#2 is having $1000.00 which peoples is having more money? Which peoples is having more spending power? Voter$1 is giving $1 to politician and Voter$1000 is giving $1000 to politician, which voters is having more political power? Is both voters having equal political power? “one person, one vote”? Politicians, lobbyist, media, even SCOTUS (supreme court) is saying this is being true, money is not corrupting. In binary world, maybe. But world is not being binary, is it? What about peoples#3, VoterUndecided? VoterUndecided is giving no moneys and no votes. Politician is needing money for campaign to buy advertising, positive media stories, advisors, pollsters, operatives to be making VoterUndecided vote for politician. Political fundrasing, now which voter is having more political power? VoterUndecided votes for politician and politician wins. Re-election is coming. Government budget decision is required. Voter$1 is wanting politician to be spending taxes on education for making children into great thinkers, leaders, scientists. Voter$1000 is shareholder of defense & intelligence company is wanting politician spending taxes on spying and war to be making benefit self, for great profit. Political favors, now, which voter is having more political power? Did theshadowbrokers lose Amerikanskis? Amerikanskis is still thinking “one person, one vote”? Money isn’t corrupting elections, politics, govenments?
USSA elections is coming! 60% of Amerikansky never voting. Best scenario is meaning half of remaining red or blue fanatics or 20% of the most fanatical is picking USSA government? A great power. A free country. A good-doer. TheShadowBrokers is having suggestion. On November 8th, instead of not voting, maybe be stopping the vote all together? Maybe being grinch who stopped election from coming? Maybe hacking election is being the best idea? #hackelection2016. If peoples is not being hackers, then #disruptelection2016, #disruptcorruption2016. Maybe peoples not be going to work, be finding local polling places and protesting, blocking , disrupting , smashing equipment, tearing up ballots? The wealthy elites is being weakest during elections and transition of power. Is being why USSA is targeting elections in foreign countries. Don’t beleiving? Remembering Iran elections? Rembering stuxnet? Maybe is not Russia hacking election, maybe is being payback from Iran?
Ok peoples theshadowbrokers is promising you a trick or treating, here it is
https://mega.nz/#F!D1Q2EQpD!Lb09shM5XMZsQ_5_E1l4eQ https://yadi.sk/d/NCEyJQsBxrQxz
Password = payus
This is being equation group pitchimpair (redirector) keys, many missions into your networks is/was coming from these ip addresses. Is being unfortunate no peoples is already owning eqgrp_auction_file. Auction file is having tools for to making connect to these pitchimpairs. Maybe tools no more installed? Maybe is being cleaned up? To peoples is being owner of pitchimpair computers, don’t be looking for files, rootkit will self destruct. Be making cold forensic image. @GCHQ @Belgacom TheShadowBrokers is making special effort not to using foul language, bigotry, or making any funny. Be seeing if NBC, ABC, CBS, FOX is making stories about now? Maybe political hacks is being more important?
How bad do you want it to get? When you are ready to make the bleeding stop, payus, so we can move onto the next game. The game where you try to catch us cashing out! Swag us out!
Source: https://medium.com/@shadowbrokerss/message-5-trick-or-treat-e43f946f93e6#.9cfljtkx3
Again, the usual old spiel of brave hackers fighting "USSA"/"Amerikansky" "corruption". It's gotten quite repetitive by now.
Bizarrely, they began posting Bill Clinton and Lorreta Lynch erotic fan fiction at some point:
https://medium.com/@shadowbrokerss/begin-pgp-signed-message-hash-sha1-2a9aa03838a4#.896d0iqpi
submitted by DownWithAssad to geopolitics [link] [comments]

Bitcoin Tax - How Much Do You Owe? - YouTube mining terbaru oktober gratis 100 gh/s - YouTube My Bitcoin Mining Setup Using Green Energy & A Quick Recap Of My Mining World How to build a Mining Rig - Teil 1 - Die Hardware Deutsch Bitcoin Mining vs. GPU Mining & How to Assemble a Mining Rig for Ethereum, Dash, LBRY & More Part 4

If you later sell the Bitcoin for $1500 then you will realize a capital gain of $1500 - $1000 - $10 = $490. You will have to pay a capital gains tax on this amount, we will go deeper into how much tax you will have to pay in the next section. Here's a breakdown of the most common crypto scenarios and the type of tax liability they result in: Buying crypto. This is the first thing you do when ... Der Großteil des Bitcoin Mining ist spezialisiert und die Lagerhäuser sehen in etwa so aus: Quelle ieee.org. Damit haben Sie es zu tun! Es ist einfach zu teuer und es ist unwahrscheinlich, dass Sie einen Gewinn erzielen. Allerdings: Zum Hobby-Mining zeigen wir Ihnen ein paar Schritte, die Sie unternehmen können, um sofort mit dem Mining von Bitcoins zu beginnen. Schritt #1: Besorgen Sie ... Mining Bitcoin can be potentially profitable if you have done your proper research. Blindly buying 20 Graphics cards and setting up a rig in your basement may not be such a good idea. GPUs are also less efficient than ASIC devices which can clock massive hash rates. Also bear in mind that if you do buy hardware, every minute it’s offline is costing you money. Until you breakeven, you cannot ... What is Bitcoin Mining Summary. Bitcoin mining is the process of updating the ledger of Bitcoin transactions known as the blockchain.Mining is done by running extremely powerful computers called ASICs that race against other miners in an attempt to guess a specific number.. The first miner to guess the number gets to update the ledger of transactions and also receives a reward of newly minted ... On January 1, the BTC network hashrate touched an all-time high at close to 120 exahash per second (EH/s). Despite the crypto market lull and lower BTC prices, the 2020 milestone happened just ...

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Bitcoin Tax - How Much Do You Owe? - YouTube

Welcome to my Bitcoin / Cryptocurrency Mining world and my home. In this video I'll go over a brief rundown of how I am heating my house for free as I mine Bitcoin in the winter and how it doesn't ... Published on Feb 1, 2016 At first, miners used their central processing unit (CPU) to mine, but soon this wasn't fast enough and it bogged down the system resources of the host computer. bitcoin mining rig 2016 bitcoin mining raspberry pi 3 bitcoin mining results bitcoin mining room bitcoin mining rig cheap bitcoin mining rx 480 bitcoin mining review bitcoin mining rig 2015 ... This video is unavailable. Watch Queue Queue. Watch Queue Queue Grüßt euch! In Teil 1 der 6teiligen How to build a Mining Rig Serie zeige ich euch, was ihr für Hardware benötigt und welche ich selbst gekauft habe. Alles W...

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