A US Election Probe Implicated Bitcoin – And the Reaction Was Swift

The revelation bitcoin may have played a role in one of the biggest U.S. elections scandals has crypto supporters and mainstream pundits talking.

AccessTimeIconJul 14, 2018 at 8:50 a.m. UTCUpdated Sep 13, 2021 at 8:10 a.m. UTC
AccessTimeIconJul 14, 2018 at 8:50 a.m. UTCUpdated Sep 13, 2021 at 8:10 a.m. UTC

Rod Rosenstein, the deputy attorney general of the U.S., sparked a social firestorm when he revealed that the dozen Russian military intelligence officers indicted on Friday used bitcoin to fund hacking efforts during the 2016 presidential election.

earlier today, the defendants named in the indictment are accused of gaining access to computer systems utilized by the Democratic Party, including those used by presidential candidate Hillary Clinton, in order to disseminate that information during the election. Notably, the accused used bitcoin – including funds they mined themselves – to pay for web domains and other services utilized during their alleged scheme.

Unsurprisingly, the news quickly spread through social media, inciting a mix of incredulity, suspicion and – in some cases – amusement from observers.

Yet the story also drew the attention of at least one member of Congress, who took to Twitter to argue that "the crypto industry needs to step their game up."

CoinDesk - Unknown

Rep. Emanuel Cleaver's tweet, as might be expected, drew swift condemnation from members of the crypto community.

CoinDesk - Unknown

While much of Friday's social chatter is focused on other elements of the indictment and the broader investigation, the story seems to have elicited remarks from some not normally prone to comment on crypto-related stories.

CoinDesk - Unknown

CoinDesk - Unknown

Indeed, the news sparked a multitude of responses, from the dismissive to the downright hostile. Some saw it as another scandal to taint the cryptocurrency sphere.

CoinDesk - Unknown

Another interpretation: that today's indictment was intended to influence an upcoming meeting between Trump and Russian president Vladimir Putin.

CoinDesk - Unknown

There were also some lighter takes in the mix – though how light they are may depend on interpretation.

CoinDesk - Unknown

Lessons to be learned?

Some commentators took the news as a clear sign that the U.S. government is serious about using the public network characteristics of cryptocurrencies like bitcoin to trace transactions.

An investor named Simon Mikhailovich noted that the indictment and the fact that the FBI was able to document virtually every step of the perpetrators should remind all investors that their activities on blockchain are easily traceable and not hidden from view.

CoinDesk - Unknown

CoinDesk - Unknown

Others offered a similar take, but in much terser terms:

CoinDesk - Unknown

Robert Mueller image via The White House/Wikipedia

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC