Leaked documents dating back to 2013 indicate the U.S National Security Agency (NSA) monitors the Bitcoin blockchain, attempting to identify users and their activity. Media outlet The Intercept claims to have classified documents from the infamous whistleblower Edward Snowden. A self-proclaimed “computer wizard,” Snowden attended the CIA’s secret school for technology specialists and was considered a “top technical and cybersecurity expert.” Snowden went on to work for Dell on its CIA account, where in 2012 he began downloading documents related to the U.S government’s electronic spying programs.Now, it seems more documents have come out relating to the NSA tracking bitcoin transactions.
The leaked documents point to the U.S NSA tracking of Bitcoin’s distributed ledger and use of specialized software to identify users and transactions.
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The documents hint the NSA may use a powerful program, XKeyScore, to monitor activity on the internet. Programs code-named OAKSTAR and MONEYROCKET are reportedly used to track communications on the internet and extract data. The NSA documents also refer to MONKEYROCKET, launched in 2012, as a “service in support of counter-terrorism”.The U.S government frequently raises concerns over the purported connections between digital currencies and criminal or terrorist activity. Bitcoin’s early reputation was tarnished by connections with black market users who sought to take advantage of the anonymous, decentralized mode of money transfer.Password information, user’s computer data, IP addresses, and internet activity could have been gathered by the NSA which described Bitcoin as “#1 priority” in an internal report dated March 15th, 2013. With this kind of data it would be easy for the NSA to identify individual users.The reports indicate the NSA is also looking into other digital currencies beyond bitcoin.
Though the Bitcoin blockchain was originally perceived as being completely anonymous, it was never completely so. Bitcoin is more private than traditional methods of money transfer, but user account addresses and transactions are recorded on the blockchain and can, with expert effort, be tracked.Many owners of significant amounts of Bitcoin have been identified publicly through their wallet addresses. Other Bitcoin wallets of magnitude remain anonymous, at least in the public eye, including those suspected to belong to the unconfirmed Bitcoin creator Satoshi Nakamoto.Bitcoin’s original ethos no doubt attracts users associated with criminal activity and others who seek to evade taxation. Given this association, it’s not entirely surprising that security agencies like the NSA aim to monitor both use and users. On the other hand, the anonymity of Bitcoin and other digital currencies also attracts honest investors seeking privacy in their transactions. It further brings in supporters of Bitcoin’s implied move away from government and institutionally controlled money markets.The boom in value and adoption of digital currencies and blockchain technology has seen them transform into many mainstream applications. Now completely in the eye of both public and regulators, digital currencies are assets viewed by some as equally credible to any stock or share on Wall Street.Image credit: flickr
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