1994-02-16 - Re: money maker

Header Data

From: tcmay@netcom.com (Timothy C. May)
To: CCGARY@MIZZOU1.missouri.edu (Gary Jeffers)
Message Hash: d15a33e1e3205c09aaa994da98a9f3b68b1958f0559dd380bfde3c09fd9e2d2d
Message ID: <199402161952.LAA02544@mail.netcom.com>
Reply To: <9402160554.AA02030@toad.com>
UTC Datetime: 1994-02-16 19:55:12 UTC
Raw Date: Wed, 16 Feb 94 11:55:12 PST

Raw message

From: tcmay@netcom.com (Timothy C. May)
Date: Wed, 16 Feb 94 11:55:12 PST
To: CCGARY@MIZZOU1.missouri.edu (Gary Jeffers)
Subject: Re: money maker
In-Reply-To: <9402160554.AA02030@toad.com>
Message-ID: <199402161952.LAA02544@mail.netcom.com>
MIME-Version: 1.0
Content-Type: text/plain

Gary Jeffers writes:

>    I have an idea of how ambitious cypherpunks could make money. They
> could be communications intermediaries between financial clients in
> the U.S. & financial institutions in locations such as the Bahamas
> & Switzerland.
>    This would require a cypherpunk in the U.S. & another cypherpunk
> in the foreign country. From now on in text cypherpunk = CP.
> The U.S. CP would get message from client & then use the internet
> with anonymous remailers & strong encryption to send message to
> CP in foreign country. CP in foreign country then decrypts message
> & gives it to local financial institution. Financial institution

This is a really neato idea!

In fact, here's a way to make even more money this way (sung to the
tune of "Mo Money, Mo Money, Mo Money"):

- set yourself as this "crypto intermediary"
- take the plaintext offered by your tax-evading clients, do the
encryption, etc., etc.

- after several million buck's worth of transactions have flowed
through your system, go to the Internal Revenue Service and report
that you are "shocked, simply shocked" at what appears to you to be a
violation of U.S. tax laws

- be sure to demand your 25% fee--25% or more of the amount the IRS
ultimately collects goes to the whistleblower.

I cite this not as a flame against Gary (nothing wrong with
speculation) but as a cautionary note against trusting others to act
as your "agents."

There may be a role for discreet (and discrete, too) financial
advisors, and some may be involved in money laundering and tax
evasion--after all, it happens all around us. But they are also weak
links and can turn in their clients for finder's fees and in cutting
their own deals with the Feds to avoid jail time.

I don't expect too many Cypherpunks will be able to find clients this

--Tim May

Timothy C. May         | Crypto Anarchy: encryption, digital money,  
tcmay@netcom.com       | anonymous networks, digital pseudonyms, zero
408-688-5409           | knowledge, reputations, information markets, 
W.A.S.T.E.: Aptos, CA  | black markets, collapse of governments.
Higher Power:2**859433 | Public Key: PGP and MailSafe available.