Is NFT a way to whiten the black money?

Oasisman

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Quote from: Pffrt on January 19, 2022, 08:49:09 AM

NFT is very easy to mint, anyone can mint and sell there NFT through different platform. But can this be a way of money laundering or whiten the black money? Imagine, someone is hacking cards and buying ETH. And then they are on other side, minting NFT and buying their NFT themselves. So, the hacker is easily bypassing the law. Black money is turning into white money in a very easy way. What is your opinion on this?

The scenario could be possible, however there's nothing much we can do about it but the least we can do is to secure our asset and financial info to avoid the hackers and scammers in accessing this route.
While money laundering happens everywhere not just crypto it also happens with fiat. So, I guess there's nothing much we can do about it as well but to trust it to the authorities.
Speaking of authorities, we don't have it in crypto because it is not yet widely regulated. So, again this makes the narrative "there's nothing much we can do about it" stronger lol.

dothebeats

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It is, and I think you're not the first one to have realized this. Given the absurd amount of money some NFTs fetch, with how little effort they have to do in order to mint one, they are literally just making money out of thin air without anyone batting an eye. This is already happening IMO though it has not been completely looked into, or at least being considered as a possibility by the very people who are involved in the NFT market.

TimeTeller

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Quote from: Johnyz on January 19, 2022, 04:25:12 PM

Quote from: MAAManda on January 19, 2022, 09:22:41 AM

Quote from: Pffrt on January 19, 2022, 08:49:09 AM

NFT is very easy to mint, anyone can mint and sell there NFT through different platform. But can this be a way of money laundering or whiten the black money? Imagine, someone is hacking cards and buying ETH. And then they are on other side, minting NFT and buying their NFT themselves. So, the hacker is easily bypassing the law. Black money is turning into white money in a very easy way. What is your opinion on this?

I think this has been discussed since the first time NFT was introduced in the crypto world, it is not impossible indeed to launder money in NFT, even this activity is quite easy to do. Therefore I have no interest in entering the realm of NFT, I am afraid that if I am exposed to FOMO by people and then lose because of buying NFT. Cheesy

Some NFT are worth to buy but I don’t see others work as worth it to buy on such expensive value so I think this is really possible since its more of a decentralized and no one really knows who the seller are, so laundering can happen in NFTs. Though the hype is still here and a lot more to come for sure, so far there’s no laundering report about NFTs, but for sure if there’s a news like this the bubble will start to burst.

The presented scenario of the OP is really possible and similar situations are already happening.
Basically, everyone can create their own NFT collectibles. So yes, if the scammer or hacker decide to use this avenue, he can.
But if you are a buyer of NFT, you should weigh your reasons why you are buying and verify its authenticity.
Don't waste for something you don't believe in, just because it is the current hype.
Because once it loses its market value, you will regret following the bandwagon.

Johnyz

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Quote from: MAAManda on January 19, 2022, 09:22:41 AM

Quote from: Pffrt on January 19, 2022, 08:49:09 AM

NFT is very easy to mint, anyone can mint and sell there NFT through different platform. But can this be a way of money laundering or whiten the black money? Imagine, someone is hacking cards and buying ETH. And then they are on other side, minting NFT and buying their NFT themselves. So, the hacker is easily bypassing the law. Black money is turning into white money in a very easy way. What is your opinion on this?

I think this has been discussed since the first time NFT was introduced in the crypto world, it is not impossible indeed to launder money in NFT, even this activity is quite easy to do. Therefore I have no interest in entering the realm of NFT, I am afraid that if I am exposed to FOMO by people and then lose because of buying NFT. Cheesy

Some NFT are worth to buy but I don’t see others work as worth it to buy on such expensive value so I think this is really possible since its more of a decentralized and no one really knows who the seller are, so laundering can happen in NFTs. Though the hype is still here and a lot more to come for sure, so far there’s no laundering report about NFTs, but for sure if there’s a news like this the bubble will start to burst.

jaberwock

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Quote from: Pffrt on January 19, 2022, 08:49:09 AM

NFT is very easy to mint, anyone can mint and sell there NFT through different platform. But can this be a way of money laundering or whiten the black money? Imagine, someone is hacking cards and buying ETH. And then they are on other side, minting NFT and buying their NFT themselves. So, the hacker is easily bypassing the law. Black money is turning into white money in a very easy way. What is your opinion on this?

"Money laundering". That's the word, you do not say whiten the black money. I mean you could, but it would be weird, money laundering is a better word. Yes, there are people who do money laundering via NFT there is no doubt about that, but that is not all what they do, there are other reasons.

Let's assume that you have 500k dollars, you create an NFT, then buy it from another account using all of your 500k, and now you have your own 500k you had, and one NFT that was bought for 500k as well. That is the main way people use it, makes no sense to me at all but it is really the biggest way that I know people make money via NFT collections.

redwine49

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Quote from: Pffrt on January 19, 2022, 08:49:09 AM

NFT is very easy to mint, anyone can mint and sell there NFT through different platform. But can this be a way of money laundering or whiten the black money? Imagine, someone is hacking cards and buying ETH. And then they are on other side, minting NFT and buying their NFT themselves. So, the hacker is easily bypassing the law. Black money is turning into white money in a very easy way. What is your opinion on this?

there is a lot going on in the cryptocurrency ecosystem. NFT is not the only way to launder money, yes, they are many way.
smart contract and defi also can be the way to launder money but still possible to track because in the end we will need to pass KYC to withdraw into our fiat money.
it's also hard to perform P2P transaction without middleman/centralized platform

o48o

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I would be amazed if people wouldn't be washing money right now. It's such insane market that one could easily wash 100 million without anyone blinking an eye. So if it can happen i can see no reason why it wouldn't happen. Oldschool criminals on the other hand probably are careful with new tech and older bosses lack know how. But SOMEONE is washing money, that's for sure.

ryzaadit

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Most the time, any kind of transaction required bank and other cars (debits/kredits) you need to passed the "KYC" first. All transactions with banks and cards only can be used by the same name of the cars. Unless you have the whole account information & bank, the hacker can do that. Event you contacted the third place, is wasting time because most the time your money already gone nowhere.

KaliLinux

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Quote from: Pffrt on January 19, 2022, 08:49:09 AM

NFT is very easy to mint, anyone can mint and sell there NFT through different platform. But can this be a way of money laundering or whiten the black money? Imagine, someone is hacking cards and buying ETH. And then they are on other side, minting NFT and buying their NFT themselves. So, the hacker is easily bypassing the law. Black money is turning into white money in a very easy way. What is your opinion on this?

In this context yes and not far from reality. I definitely agree with you on this. I believe this is the same problem Bitcoin is having where people believe it is a means for money laundering and NFT just fits right in that same role as per your example. HAckers and Scammers alike, people are always thinking of how to beat the system, when you see what some of these NFTs goes for, and you begin to wonder why so much hence, what I am saying is that, this cannot be totally ruled out.

passwordnow

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That's what many are really saying about it. Just as the real world art industry goes, they're saying that laundered money is going there to clean it at least.
And the same for NFTs but, I don't believe that most of the transactions are for that particular reason. There really are those transactions that are plain and white and has nothing to do about laundering.

MAAManda

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Quote from: Pffrt on January 19, 2022, 08:49:09 AM

NFT is very easy to mint, anyone can mint and sell there NFT through different platform. But can this be a way of money laundering or whiten the black money? Imagine, someone is hacking cards and buying ETH. And then they are on other side, minting NFT and buying their NFT themselves. So, the hacker is easily bypassing the law. Black money is turning into white money in a very easy way. What is your opinion on this?

I think this has been discussed since the first time NFT was introduced in the crypto world, it is not impossible indeed to launder money in NFT, even this activity is quite easy to do. Therefore I have no interest in entering the realm of NFT, I am afraid that if I am exposed to FOMO by people and then lose because of buying NFT. Cheesy

masulum

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hmph..

I think it can still be traced, if with logic.
From card to crypto, it requires a wallet (bank) to wallet (blockchain), let's say the person bought NFT on OpenSea with card, the bank card history will be recorded there. The bank has the data, opensea has the data, if it's from a blockchain wallet, then move around, let's say using mixing, then the data can still be searched, because the mixing service i think will also find the root of the initial transaction, if then from mixing to CEX that's where the last money will be found.

The logic might be that way. this will take some time to investigate or even hard to be tracked, but i think it still possible, but at the very least, blockchain is an open space even though it is anonymous, if it ends up at CEX, in the end it will also find out who is the person who made the transaction.

Maybe I'm wrong on this.

Pffrt

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Quote from: bitkanu on January 19, 2022, 09:02:31 AM

There is a lot of arts that are better than it and why there were people valued a cartoon worth millions USD. that's totally a non sense thing.

That's something I wouldn’t directly compare. There are people who buy things which in our opinion is a shit but for them, they are something very much important. Elite class people do so many things to get them notified in the community which for other people is a waste of money. I think you got my point.

bitkanu

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Quote from: Pffrt on January 19, 2022, 08:49:09 AM

NFT is very easy to mint, anyone can mint and sell there NFT through different platform. But can this be a way of money laundering or whiten the black money?

Yes and why not? I do believe of those NFT cartoons that worth millions USD being used as money laundering. There is a lot of arts that are better than it and why there were people valued a cartoon worth millions USD. that's totally a non sense thing.

Quote from: Pffrt on January 19, 2022, 08:49:09 AM

Imagine, someone is hacking cards and buying ETH.

It's possible and that's why so many people are calling it as a new way for money laundering. Remember that there was a lot of manipulation on the NFT market.

Quote from: Pffrt on January 19, 2022, 08:49:09 AM

And then they are on other side, minting NFT and buying their NFT themselves. So, the hacker is easily bypassing the law. Black money is turning into white money in a very easy way. What is your opinion on this?

I do agree with this. that's why people are putting this as the main concern. I do believe those NFTs worth millions dollars fully manipulated.

Pffrt

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NFT is very easy to mint, anyone can mint and sell there NFT through different platform. But can this be a way of money laundering or whiten the black money? Imagine, someone is hacking cards and buying ETH. And then they are on other side, minting NFT and buying their NFT themselves. So, the hacker is easily bypassing the law. Black money is turning into white money in a very easy way. What is your opinion on this?

Topic: Is NFT a way to whiten the black money? (Read 109 times)