That was Pablo Escobar's cash in the 1990's. He didn't know where to put them. That's not even all of them, just a 'small' portion, and that's just from one cartel.
Topic: Drug Money and the Rise and Rise of Bitcoin (Read 1128 times)
Ok, so said it was the upcoming hard fork that was making Bitcoin rise to new ATH. Now that it has been cancelled, it's still going up. What are they gonna say now? It's the upcoming Bitcoin future's market? Lol. I mean really... I'd like to see my drug money theory disproved but I haven't seen one compelling argument made.
That was Pablo Escobar's cash in the 1990's. He didn't know where to put them. That's not even all of them, just a 'small' portion, and that's just from one cartel.
That was Pablo Escobar's cash in the 1990's. He didn't know where to put them. That's not even all of them, just a 'small' portion, and that's just from one cartel.
They probably buy bitcoins from time to time, but they are obviously not the main reason behind Bitcoin price rise. I would rather say it is the Bitcoin future from Chicago Mercantile Exchange.
Ok, I know you're probably saying 'WTF man!', but here me out because it could be plausible.
I just saw the movie called 'American Made'. It's about this pilot named Barry Seal who smuggled drugs for Pablo Escobar, and then guns for the CIA. The thing is he made a lot of money that... Like 'he doesn't know where to put them' a lot... He buries bags full of cash in his backyard ffs, just like how Escobar did it.
Anyway, then I thought, it would be cool if Bitcoin was around during that time because they could easily store all that value in a USB drive. Lol.
Then it occured to me... Drug cartels today are bigger and better, what's stopping them from buying all the BTC they can get their hands on?
What do you guys think?
I do not think so, btc increased just because the investors are speculation, no matter what drug cartels are manipulating I just saw the movie called 'American Made'. It's about this pilot named Barry Seal who smuggled drugs for Pablo Escobar, and then guns for the CIA. The thing is he made a lot of money that... Like 'he doesn't know where to put them' a lot... He buries bags full of cash in his backyard ffs, just like how Escobar did it.
Anyway, then I thought, it would be cool if Bitcoin was around during that time because they could easily store all that value in a USB drive. Lol.
Then it occured to me... Drug cartels today are bigger and better, what's stopping them from buying all the BTC they can get their hands on?
What do you guys think?
Yes Drug money are into bitcoin too here in my country they use bitcoin as a payment gateway and also those big fishes they are using bitcoin to pay drugs online and it will be delivered at the clubs i don't know why people are always find there way to sell drugs even in online i see lots sellers now who accept bitcoin lmao.
Well, you get bitcoin for drug trafficking what's next? You will need to transfer this amount in Fiat. How you do it. If you get into the sphere of interest of law enforcement agencies that they are sure you will find. Every person leaves traces in the Internet. Fiat's much easier to hide. Bitcoin is used for such purposes only Amateurs. 
It is something sure at 100% that there is illegal money flowing into Bitcoin, it is just a miraculous tool made for them. However, I doubt it is the reason behind the current rise, because it is probably somehow isolated and probably not a big-scale trafic. But I might be wrong. The principle of those groups is that we can not know what they are doing.
1. To launder that much money, you'd have to be moving a LOT of bitcoins. Regularly. If the total market cap of crypto is only 165 billion, and of that only 94 billion, we're talking about very noticeable amounts being laundered. Even taking into account a $5000 Bitcoin value, to move 1 million dollars requires 200 Bitcoins. And we know the industry is moving hundreds of millions a month. Those Bitcoin volumes moving into USB wallets are going to be very easy to detect. Getting someone to SELL you those Bitcoins is going to be hard to find. Exchanges as we know them are going to be very difficult as well.
See, if you're moving millions of fiat in a global market of 100s of trillions, it's a speck. Perhaps when Bitcoin is valued at 100,000, it may become more viable.
This. It's easier to launder money through a legit business, or use cash, than bitcoin. Bitcoin is too small, and the public ledger means that if your address is tied to a persona, you are toast.
Or set up a Bitcoin exchange operated by 'anonymous' people, just like what Alex Vinnick did. And I wouldn't be surprised if some of the other 'legit' exchanges are being used to launder drug money. If bank executives at the top do it, then Bitcoin exchanges are the cheaper option. It would be naive to think no shenanigans are going on in the space.
Criminal Mastermind' of $4bn Bitcoin Laundering Scheme Arrested
https://www.theguardian.com/technology/2017/jul/27/russian-criminal-mastermind-4bn-bitcoin-laundering-scheme-arrested-mt-gox-exchange-alexander-vinnik
Hey tokeweed, I'm hearing you out! Here's my take on it, after seeing several discussions and thinking about it myself.
1. To launder that much money, you'd have to be moving a LOT of bitcoins. Regularly. If the total market cap of crypto is only 165 billion, and of that only 94 billion, we're talking about very noticeable amounts being laundered. Even taking into account a $5000 Bitcoin value, to move 1 million dollars requires 200 Bitcoins. And we know the industry is moving hundreds of millions a month. Those Bitcoin volumes moving into USB wallets are going to be very easy to detect. Getting someone to SELL you those Bitcoins is going to be hard to find. Exchanges as we know them are going to be very difficult as well.
See, if you're moving millions of fiat in a global market of 100s of trillions, it's a speck. Perhaps when Bitcoin is valued at 100,000, it may become more viable.
2. It didn't take long for the FBI to track down dark markets who went through the trouble of mixing, remixing and anonymising their transactions... on a volume far smaller than drug cartels. What this tells us is that the tracking software has become very sophisticated.
I believe the technical knowledge required to hide and launder Bitcoin, being a non-anonymous public ledger and all that, is a deterrent to major organised crime to using crypto. They've got great accountants schooled in conventional finance, but not yet the skilled programmers who would help them use crypto to their needs.
However, due to ETH's architectural difference (and Monero's), illegal activities are moving towards them and it may well be that they could be used chiefly for these. Research already shows Bitcoin illegal use dropping sharply, and is predicted to be less than 5% of volume end of this year.
3. Most likely, they haven't heard about Bitcoin yet or don't know yet how to use it. Somewhat related to (2)... but you know, these guys are probably unimaginably removed from our world of computers and digital tech. Call it a deeply-ingrained culture of paranoia!
1. To launder that much money, you'd have to be moving a LOT of bitcoins. Regularly. If the total market cap of crypto is only 165 billion, and of that only 94 billion, we're talking about very noticeable amounts being laundered. Even taking into account a $5000 Bitcoin value, to move 1 million dollars requires 200 Bitcoins. And we know the industry is moving hundreds of millions a month. Those Bitcoin volumes moving into USB wallets are going to be very easy to detect. Getting someone to SELL you those Bitcoins is going to be hard to find. Exchanges as we know them are going to be very difficult as well.
See, if you're moving millions of fiat in a global market of 100s of trillions, it's a speck. Perhaps when Bitcoin is valued at 100,000, it may become more viable.
2. It didn't take long for the FBI to track down dark markets who went through the trouble of mixing, remixing and anonymising their transactions... on a volume far smaller than drug cartels. What this tells us is that the tracking software has become very sophisticated.
I believe the technical knowledge required to hide and launder Bitcoin, being a non-anonymous public ledger and all that, is a deterrent to major organised crime to using crypto. They've got great accountants schooled in conventional finance, but not yet the skilled programmers who would help them use crypto to their needs.
However, due to ETH's architectural difference (and Monero's), illegal activities are moving towards them and it may well be that they could be used chiefly for these. Research already shows Bitcoin illegal use dropping sharply, and is predicted to be less than 5% of volume end of this year.
3. Most likely, they haven't heard about Bitcoin yet or don't know yet how to use it. Somewhat related to (2)... but you know, these guys are probably unimaginably removed from our world of computers and digital tech. Call it a deeply-ingrained culture of paranoia!
This is a very good explanation.
Indeed, trade in illicit goods was a driver of bitcoin price a while ago (at the times of Silk Road, where you had to have btc to trade), now it is negligible.
Yes Drug money are into bitcoin too here in my country they use bitcoin as a payment gateway and also those big fishes they are using bitcoin to pay drugs online and it will be delivered at the clubs i don't know why people are always find there way to sell drugs even in online i see lots sellers now who accept bitcoin lmao.
The movie is cool but it is pretty far from the current situation. Nowadays every major BTC operation would be notified by the government, you still can't buy anything for bitcoins (ofc you can but if you have a huge amount in BTC then you won't find a good usage for it) and you cant exchange big amounts of BTC. You gona have the same situation as a guy in a movie but you won't have to hide your money.
Also I don't think that cartells are causing this pump simply because they are not that stupid and they should have their own financial specialists. Right now bitcoin in in the bubble and it won't be a smart move to buy big amounts of BTC on the top of the bubble.
Also I don't think that cartells are causing this pump simply because they are not that stupid and they should have their own financial specialists. Right now bitcoin in in the bubble and it won't be a smart move to buy big amounts of BTC on the top of the bubble.
Who knows.
I don't think drug cartels need bitcoin they always find a way how to launder paper money, and not to mention some cartels don't even have to launder money because their country is corrupted from bottom to top.
Besides, exchanges could simply take their funds if they find anything suspicious, unless they are running exchange themselves and in that case it would be simple for them to launder money trough bitcoins, but still it doesn't explain bitcoin spike.
I don't think drug cartels need bitcoin they always find a way how to launder paper money, and not to mention some cartels don't even have to launder money because their country is corrupted from bottom to top.
Besides, exchanges could simply take their funds if they find anything suspicious, unless they are running exchange themselves and in that case it would be simple for them to launder money trough bitcoins, but still it doesn't explain bitcoin spike.
Maybe it is because i watch a lot of series, but yes, it is happening, a lot of drug dealers are paying and receiving money by bitcoin because it is very easy to launder that money, and for getting paid with it of course.
And those who want more anonymity, are using Monero, because it is 100% untraceable.
But if a giant cartel puts their funds in here, they will only increase the marketcap by a few millions, and it wont make any difference on the price after all.
And those who want more anonymity, are using Monero, because it is 100% untraceable.
But if a giant cartel puts their funds in here, they will only increase the marketcap by a few millions, and it wont make any difference on the price after all.
I love google: https://www.google.com/search?q=how+much+money+does+drug+cartel+make
it tells me they are making $39 billion in a year and that is for 2008 (2009 reporting last year). the volume that goes in and out of bitcoin is not even close to that number.
if 30-40 billion dollar were to be injected in bitcoin, price would have been at $1,000,000 already. not to mention that all the drug lords would have been behind bars since all their money could have been traced easily.
it tells me they are making $39 billion in a year and that is for 2008 (2009 reporting last year). the volume that goes in and out of bitcoin is not even close to that number.
if 30-40 billion dollar were to be injected in bitcoin, price would have been at $1,000,000 already. not to mention that all the drug lords would have been behind bars since all their money could have been traced easily.
Super interesting post just to imagine how much potential have bitcoin and others cryptoes!
Any value coin can easily rise 1000x in time.
One cannot make such a big transaction for buying large volume of bitcoin. Even after certain number of bitcoin purchases we are supposed to cope with the KYC norms. Even now people keep hold of black money, but they fear of transacting it through bitcoin or convert and keep hold in the form of bitcoin. This is all because of the system where he gets caught in one way or the other.
The transparency of transactions kind of hurt them. If you were dealing drugs in a small scale then I'm sure law enforcement agencies are not going to spend too much resources on you, but once you start dealing with that amount of money, you're going to be on their radar relentlessly.
I'm not sure with your point mate how can they track you out if you are using bitcoin? unless you keep exchanging it to your local fiat and your local exchangewould be able to review your transactions, but if the drug dealer transact only with direct btc and no government can track them out aside from the hackers
who's keeps on looking for the possible victims.
We can't know for sure how, but the FBI and Interpol have revealed that it was precisely because darkmarket traders used Bitcoin that they were more able to track down people. Even as early as 2013/4, journalists themselves were already able to track down and identify known addresses of traders with the most basic tracking tools. The basic idea is, if you follow every transaction, you can trace all the inputs and outputs in a chain until you eventually arrive at a known address or one that is associated with the activity.
Yes, there are so many variables, and traders tend to use mixers/tumblers heavily to mask and obfuscate their coins, but eventually, everything is somehow linked. All it takes is a trader to get careless once. Perhaps send his address by email revealing his email server IP. Perhaps by cashing out even once at an exchanger with a verified phone number that can then be tracked with GPS. The software enforcement is using now is clearly powerful enough to track them down even with heavy mixing use.
The transparency of transactions kind of hurt them. If you were dealing drugs in a small scale then I'm sure law enforcement agencies are not going to spend too much resources on you, but once you start dealing with that amount of money, you're going to be on their radar relentlessly.
I'm not sure with your point mate how can they track you out if you are using bitcoin? unless you keep exchanging it to your local fiat and your local exchangewould be able to review your transactions, but if the drug dealer transact only with direct btc and no government can track them out aside from the hackers
who's keeps on looking for the possible victims.
The transparency of transactions kind of hurt them. If you were dealing drugs in a small scale then I'm sure law enforcement agencies are not going to spend too much resources on you, but once you start dealing with that amount of money, you're going to be on their radar relentlessly.
I love google: https://www.google.com/search?q=how+much+money+does+drug+cartel+make
it tells me they are making $39 billion in a year and that is for 2008 (2009 reporting last year). the volume that goes in and out of bitcoin is not even close to that number.
if 30-40 billion dollar were to be injected in bitcoin, price would have been at $1,000,000 already. not to mention that all the drug lords would have been behind bars since all their money could have been traced easily.
it tells me they are making $39 billion in a year and that is for 2008 (2009 reporting last year). the volume that goes in and out of bitcoin is not even close to that number.
if 30-40 billion dollar were to be injected in bitcoin, price would have been at $1,000,000 already. not to mention that all the drug lords would have been behind bars since all their money could have been traced easily.
But hear this, not all that 39 billion will be going in Bitcoin, just enough to keep making it rise to new ATH. If banking executives at the top help launder the cartels' money, it wouldn't be too farfeched to have an exchange (BTCe) used by money launderers (that Alex guy) to get drug money in and out of BTC.
There's even a rumor back in the day that Litecoin was being used to launder Yuan.
It was in earlier days of bitcoin that silk road and dark markets adopted bitcoin for their illegal activities.But now,they have other ultimate choices like monero and zcash for such purposes since they provide full anonymity and bitcoin is pseudo anonymous.
Drug dealers won't be willing to risk by dealing their business with bitcoin payments as it could be easily traced.Now,bitcoin is widely used for various purposes like trading,sending huge amounts of money,buying goods,etc.Bitcoin has diversified uses.
Drug dealers won't be willing to risk by dealing their business with bitcoin payments as it could be easily traced.Now,bitcoin is widely used for various purposes like trading,sending huge amounts of money,buying goods,etc.Bitcoin has diversified uses.
I love google: https://www.google.com/search?q=how+much+money+does+drug+cartel+make
it tells me they are making $39 billion in a year and that is for 2008 (2009 reporting last year). the volume that goes in and out of bitcoin is not even close to that number.
if 30-40 billion dollar were to be injected in bitcoin, price would have been at $1,000,000 already. not to mention that all the drug lords would have been behind bars since all their money could have been traced easily.
it tells me they are making $39 billion in a year and that is for 2008 (2009 reporting last year). the volume that goes in and out of bitcoin is not even close to that number.
if 30-40 billion dollar were to be injected in bitcoin, price would have been at $1,000,000 already. not to mention that all the drug lords would have been behind bars since all their money could have been traced easily.
Nothing. And this is actually the reason why the government questions the Bitcoin because it is a mean of money laundering and illegal transactions. But Bitcoin did not made the illegal business big, because without Bitcoin, these drug lords will still do this and continue the business.
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