FBI Probes Bitcoin Insider Theft, Doxes Conference Attendees

The FBI has issued a subpoena seeking the personal information of attendees at a Bitcoin core developer event, investigating a $14 million BTC theft from developer Luke Dashjr. The subpoena demands first and last names, GitHub usernames, and email addresses, sparking backlash within the Bitcoin community who are concerned about being doxxed. The investigation's specifics remain unclear, with the agency neither confirming nor denying the existence of a specific suspect or broader information-gathering effort.

FBI Probes Bitcoin Insider Theft and Doxes Conference Attendees

Exclusive Report:

The Federal Bureau of Investigation (FBI) has initiated an investigation into the audacious theft of over 200 Bitcoin (BTC) from prominent Bitcoin developer Luke Dashjr during a core developer event held in October 2022. The purloined cryptocurrency, initially valued at approximately $3.3 million, has since surged in value due to pre-Bitcoin halving volatility and exchange-traded fund (ETF)-fueled price rallies, escalating its current worth to an estimated $14 million.

Mike Schmidt, co-founder of the Bitcoin non-profit organization Brink, has disclosed via email that the FBI issued a subpoena demanding the personal information of attendees at the CoreDev Atlanta event, which preceded the TABConf conference in 2022. The subpoena sought first and last names, GitHub usernames, and email addresses of the participants under the guise of investigating Dashjr's claim of theft. Acting on legal advice, Schmidt complied with the request, despite the subpoena containing a confidentiality clause that expired a year later, shortly before Schmidt's disclosure.

The Bitcoin developer community has expressed outrage over the prospect of being "doxxed" by the FBI, a term used to describe the public disclosure of personal and identifying information. Schmidt himself took to Twitter to voice his displeasure, stating, "The guy who wants to tell you how to use Bitcoin couldn't even secure his own Bitcoin and, as a consequence, got everyone at a conference he attended doxxed by the FBI."

The precise objectives of the FBI's investigation remain shrouded in mystery, with Schmidt expressing uncertainty as to whether the subpoena targeted a specific suspect or formed part of a broader intelligence-gathering operation. Since fulfilling the subpoena, Schmidt has had no further contact with the agency and has refrained from divulging any additional details.

The FBI's involvement in cryptocurrency investigations is not unprecedented. Earlier this year, the agency delved into the origins of a fraudulent tweet purporting to originate from the U.S. Securities and Exchange Commission (SEC), which erroneously announced the premature approval of all Bitcoin spot ETFs. Initial conjecture suggested that the tweet was an accidental early release of a draft announcement. However, a statement provided to Decrypt by an SEC spokesperson subsequently denied any internal involvement in the creation of the tweet.

The ongoing FBI investigation into the Bitcoin theft underscores the agency's heightened focus on the cryptocurrency ecosystem. While the ultimate outcome of the probe remains uncertain, it has undoubtedly raised concerns within the Bitcoin community regarding the potential erosion of privacy and the erosion of trust between developers and law enforcement.