Topic: Bitcoin used to do money laundering - will it become a huge problem? - page 7. (Read 5862 times)

Personally, I find that it's not easy to buy reasonable amounts of bitcoin without sending my government ID, and/or my taxpayer identification number, to the various exchanges. (I am not willing to do this because I don't trust the security of many start-up companies, and worry about identity theft.) When the exchanges have this information, it's a simple matter for the government to subpoena them, and then me.

If terrorists from Paris caught living. so they will not kill us human system but gives them a life sentence from a possible release for good behavior. That's right. crazy..

the american swine  gave Ulbricht a life sentence as a warning sign for other producers another silk roads anonymous sellers of illegal drugs.
but when it comes to legalize it and let the business of another legal drug freee.. taxed like other drugs like alcohol and tobacco ,sugar, pharmacy..etc ..  Noo noo

in each country increase the number of state employees. from that where I am the most in Europe (39 per day).and they do not create value, only parasites in taxes/state income... !!!war on drugs therefore can not end!!!!. For it is fraudulent evasion-employment..

the American and other governments in Europe have priority islamization. and not democracy - responsibility for our deeds -- if I die on my an overdose, do not close me in jail and leave me alone..

US and NATO are the best interests of the islamization of europe. They  tolerate everything and obama with satan stoltenberg was right immediatly with smeagol , after shot down a Russian aircraft battling  with islam.

So... What about that other place on the world wide web, the deep web, there are many many places vendors are willing to accept the criminals Bitcoins for services, both virtual and very very real.

For the large criminal organizations, they cannot use bitcoin to buy the goods or service directly. They have to change it to fiat like US dollar. So bitcoin is not the best trading tool for them. However, they can hold the bitcoin as an investment.

Nice post. And in the UK it is actually illegal to make any purchase of anything with over £10,000 in cash ! Imagine being a lottery winner and going to the car dealership to buy that shiny new car, with cash in a briefcase, and getting turned down, and the police called lol

It may become a problem once bitcoin acceptence is at such a level that they can easily spend their coins everywhere and in large bulks.

As mentioned, trading it for fiat and transfering it to you bank account is not an option as you will get flagged anyway. Buying 10k in amazon vouchers may also get you one someones radar.

From criminal's point of view, use bitcoin is much more dangerous than cash: Their wallet might be emptied by hacker, and unless they have a very sophisticated coin mixing scheme, one of their bitcoin spending/selling might reveal all their previous transactions and get them caught

For example, police know that some addresses received illicit funds, then they will mark all the transactions originating from these addresses to be suspicious. No matter how many times the criminal mix his coins, eventually he would like to spend some of his coins at somewhere, either at an exchange or a specific merchant, then police might find a high rate of relation between these addresses and also identify the owner

There should be many patterns for typical money laundering actions, if police do enough amount of research, even the criminal himself might not understand how he get caught. Because of the openness of blockchain, law enforcement are much easier to trace the money than traditional financial system, where they have no right beyond the boarder. And they don't need to blacklist the address, they just quietly follow it and see how it evolves maybe even bigger guys behind it

So from the surface, it seems the address is not related to identity, but the user never know if someone is tracking his transactions, this is the biggest threat for criminals, they don't need to worry about this when they use cash

In my country, if you are flagged as a possible money launderer, you have to go through a full life style audit, to explain how you maintain and fund your luxurious life style. If you cannot explain it, they will start a full investigation and you will eventually get caught.

The penalties for tax evasion is harsh and some people do some jail time. So it is not worth it. ^hmf^

It depends on how the societies will react to it

Bitcoin can be used for good and for bad in terms of money laundering.

I know somebody, who is unemployed but earns a lot of $$ by means of online businesses, and his parents pay huge tax because they are on a VISA. He trades his bitcoins for cash, then lives of cash, instead of transferring it to a bank account and paying tax etc.

Tax evasion and money laundering some may say, which is the legal definition I guess, but money earnt to survive on that is taken away at a crazy tax rate... bitcoin lets people be free.. and get their freedom back..

Err where am I going with this.. not really sure...

people who launder money want it to be liquid with no trail.
My uncle used to be a partial owner of strip club in washington
DC area and he has some stories.  My point is that is a great
place to launder money lol. BTC seems a little more complicated
and a lot more of a hassle to launder less.

Its old news,every thing about bitcoin violence is not weird,bitcoin is easy for use,for anything,include miney loundring or isis money support. But i dint think its a huge problem.

I don't see it becoming any problem, to launder money they would need to transfer it from one place to another without the help of anybody else, which bitcoin does quite easily BUT the problem is converting it back to fiat, you're not going to find cash traders for large amount of fiat everywhere. I think there other ways of hiding and launder black money and criminals were using them before Bitcoin was even invented.

I don't find it a huge problem right now. Bitcoin exchanges are mostly regulated and there is mostly a limit to the amount that can be traded. This is an disadvantage for those trying to do money laundering. Even with localbitcoins, there is low liquidity and some would even require an ID.

I think criminals prefer to don't waste the time waiting the 'complicated" bitcoin transactions and confirmations, it's more simple and easy for them to use fiat and cash and they used this currencies already

Swiss bank accounts are better way to save money, cash is better to launder money. Bitcoin has only small percentage on money laundering worldwide. Blockchain records show everything so it's not the first choice for anybody.

we don't know, they use bitcoin or not
perhaps they was used because secret and unkown,  we don't know,
important bitcoin is perfect way to launder money

Well it is not really suited for that I think. We should not forget that Bitcoin is not anonymous, the weak link will always be the purchase of the coins.

I am often wondering if some large mining operations could actually be money laundering fronts.

If bitcoin has 1% of the money transaction pertaining to criminal activities, the price per Bitcoin would go in the thousands. So yes, saying BTC is criminal's money is media nonsense.

I don't think so, already many criminals and terrorists used the fiat and the cash before the crypto currencies founding, so the Bitcoin currency haven't really any kind of relation with the illegal deals or transactions worldwide