Investigations in cryptocurrencies [featuring 11andrew86]
A survey conducted by the Wall Street Journal reveals that around 90 million illegal Dollars have been recycled through cryptocurrency exchange.
A good part, about 10 million thanks to the ShapeShift platform.
ShapeShift was founded in 2014 by Erik Voorhees in Switzerland and unlike other exchange platforms, it allows the purchase of digital coins in a completely anonymous way.
The supervisory body can only trace transactions but are not able to know their identities.
The Wall Street Journal has carried out a real investigation, to lead it has developed a special computer program that tracks funds related to more than 2000 financial frauds and other alleged crimes that have used Bitcoin (BTC) or Ethereum (ETH).
To analyze ShapeShift transactions as better, the last 50 transactions made on the Platform were downloaded and archived every 15 seconds.
The criminals, says the WSJ, have used ShapeShift’s services to convert the BTC to Monero, a currency famous for the high anonymity it offers.
Despite the millions of illegal dollars circulating on this platform, the platform has never revised its users’ privacy policies.
At the end of the investigation, however, the Wall Street Journal shared with ShapeShift a list containing all the suspicious addresses that used the platform and according to Veronica McGregor, ShapeShift’s chief legal officer were banned after being verified.
McGregor has revealed that as of October 1, the company will require the identification data of its users because: “the CEO’s personal philosophy does not mean that businesses can be managed in an illegal manner, ShapeShift is not in favor of money laundering and neither it can therefore favor it. ”
Despite McGregor’s affirmation remains the doubt whether checks will increase or if cryptocurrencies can become a very useful tool in the hands of scammers or worse criminal organizations?
I leave you with this question,
See you soon.
Image source: Pixabay
Source News: CoinTelegraph
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Most money laundering is done outside of cryptocurrencies. If there's been no way to stop it, I don't think there ever will be. The banks have been involved in so much money laundering, cryptocurrency will never match them. What's wrong is to highlight the way crooks use cryptocurrency while ignoring the much bigger problems outside of cryptocurrency. To put it in context, its impossible to know the exact amount of money laundering but I've seen estimates have put it between 800 billion and 2 trillion USD a year. So there's probably more than the entire market cap in all cryptocurrencies being laundered every year and most of it isn't in cryptocurrency. I don't understand how KYC is going to help because it hasn't stopped thieves getting fake ID and opening bank accounts.
I do agree with what you said!