Bitcoins are a virtual currency that was created by Satoshi Nakamoto in 2009. Bitcoin is also the name of the open source software that the currency was built on and the P2P network used to run the software. Millions of dollars of Bitcoin transactions take place every year. The FBI fears that the Bitcoin payment network could be a way to launder money and other criminal activity like hackers stealing from fellow Bitcoin users. According to a leaked FBI report, it would be difficult to track and identify anonymous Bitcoin users.
The leaked report is titled “Bitcoin Virtual Currency: Unique Features Present Distinct Challenges for Deterring Illicit Activity.” Here is a copy of the report from Wired. The document was dated April 24th. Bitcoin combines cryptography and a P2P architecture to avoid a central authority.
Link to the news: here
Link to the leaked FBI report from Wired: here