Topic: Money laundering in crypto casino - page 2. (Read 987 times)

Casinos have long been exploited to clean dirty money.  Even before Bitcoin and blockchain technology, their combination of anonymity and accessibility made them convenient for shady transactions. 

Attempts to monitor gambling establishments are routinely dodged.  Customers provide false identification or have backdoor connections that let them bypass anti-laundering regulations.  Law enforcement partnerships crumble when lined pockets blind officials to crime syndicate ties.   

So the decentralized, borderless nature of cryptocurrencies only expands existing vulnerabilities in the casino industry and  more freedom to move money means more freedom to disguise where it came from.  And more freedom to access offshore betting means more places for illegal funds to vanish as winnings.

The government didn't shut down mixers in the first place. Hence, no need to wonder if the government will shut down casinos. Gambling is legalized in most countries, and the government earns lots of money through them. They may be hunting mixers because they don't make much money through those mixers. As everything happens hidden. The government is mainly focused on what they'll profit from any business or technology. If a business is successful and the government doesn't have a way of earning through it, the government will find a way of shutting it down. Don't you think that government officials also launder money using these mixers? Any business or body can be used to launder money. It's not a surprise to see you mentioned casinos as a way money launderers use to move or rinse money with no available traces. KYC only reduced the rate of money laundering, but imagine if a casino is owned by a team of money launderers will they need to bother about anything before laundering money? Many organized crime families make their money through casinos and launder money with the help of their member who owns the casino. I've read of crime families that use a member's gold business to launder money to Mexico. Does it mean that gold stores would be closed down because one store was found guilty of money laundering? Every niche has its downside because people in the business consist of both good and bad intentions. Mixers are great for maintaining privacy, which is the main aim of cryptocurrency. But, it's been misused, alongside bitcoin. So, the government will keep on hunting them to seize the money they've made through the business. Then resell the seized bitcoin for profits.

There's also the other thread that concerns the money laundering and shutdown due to the mixers taking down.

As I have said there, there's nothing to worry about if the casino is registered. If there are illegal activities that happens there, they'll be the one that shall be passed on the problem.

And if there are customers that will be taking their advantage on these casinos, they'll also be flagged down and will be banned permanently to not gamble with them anymore.

What's there to tell! Casinos has been laundering money even before the mixers came. That's why the government imposed so many rules and regulations to gambling platform and casinos. For the ultimate weapon KYC was implemented. That's how they were able to investigate suspicious activity. After all these dramas, money is still being laundered, you just didn't noticed it. For me I think casinos and mixers a very alike. In one you cannot see who got what, in one everything is exposed. But both of them are used for the same reason even though they were created for different purpose. Everyone knows it. From my experience I think the government won't shut down casinos because the casinos have the customers information which  the government can demand easily. But in mixers case what's gone is gone.

At this point, I do not believe in money laundering in crypto casinos, because everything is limited even when things are about money, and most politicians or criminals do their laundering in other ways, not in crypto anymore, even less in casinos than with the KYC, well, at least, they would have to be very novice in this, those who do money laundering do it first with indero fiat, in the style of the drug traffickers as they were in Colombia during the era of Pablo Escobar, as well , where basically the weight of the dollar is handled by the Kg, we are somso people who take for granted that some countries do not have corruption, but the major money laundering is not done so much by criminals, the governments do it and in a way very shameless, but that's another topic, here what matters is that it is very difficult and stupid for them to try to do money laundering through crypto casinos, I don't know, but the possibility of them doing it through decentralized casinos isn't either. I see it as viable for what they do.

They currently do money laundering through other things, it could be that they go and do it through cars, through many things where they can camouflage , this is what makes those who do it much smarter than the authorities. in the present, where 'they can enter any country where they do it and that's it, they have no scruples , it is money that they are practically going to move, so they can do it with a little more brazenness knowing that things can happen like that, I prefer I would think that chaos of this style are more focused on carrying money and transferring it, since in casinos they cannot, nor should they, in a casual casino you do not Make a very large deposit, because they set off the alarms, and I cannot even imagine the Amount of KYC they must do, because that is something that could be on another level because if the casinos with little money bother , with something less than $10k , they will move a lot , I don't even want to Imagine.

This is something that has bene attributed to the casinos a lot, but then people complain that there are KYC requests by the casinos. I am sorry but in order to prevent money laundering, or at least hamper it a bit, the yare going to end up doing something like this, that's an important detail and should be something that will benefit you the most. I understand that we may not end up with something that will be possible to just simply launder your money easily.

Of course if you can find a way to get your money into crypto then you do not need casinos neither, you can use mixers and you can use monero type stuff and just hide your money without anyone finding it, it's possible. The problem is to get crypto with illegal money, you need p2p and that's tough to do. I think casinos have every bit of right to ask for KYC, otherwise governments will punish them. Look at Bİnance, they got hit with a 4.3 billion fine for letting money laundering go around in their own exchange.

Mixers would really be the sweetest spot for  those money launderers and they would be never on trying out to clean their money via casino unless if we do speak into those physical ones but for online ones then it cant really be just possible knowing that there would really be those terms and conditions which you would really be needing to comply before you could pull out those funds but we know
that even on just needing that 1x of your deposit will really be that a pain in the ass kind of requirement and this is why i would say that its never been ideal for them to do such thing.
They wont really be that so dumb on not to know on what are the cons or risks on the time that they would really depositing their money, they wont really be that just too dumb
on not to know.

The major difference with mixers and casinos is that casinos can require from their players the KYC requirements.
This is why mixers are the target of government authorities because they don't have strict protocols with respect to AML, hence, laundering is very possible.
Whereas, licensed casinos and bookies have their AML/KYC protocols in their terms and conditions. So at least authorities are at bay with this business.

I mean it's natural for criminals to use Amy method to wash money.  Mixers are easy targets and for the most part there is no legal reason to use them so it's easy Pickens.  For casinos most of it I would imagine is clean money but there isn't much a casino could do.  I couldn't see them being "seized".  It's like brick and mortar casinos, tons of dirty money plays there but there really isn't anything a casino can do.

I don't think there's ever going to be threats to gambling sites cause there's AML policies that protect them from becoming infestation grounds for these money launderers. If anything, the only qualms I have with the current state of the forum is that besides the fact that most mixers pay higher than standard campaigns in the forum, bitcointalk will become predominated with gambling casino signature campaigns again which is not necessarily a problem, but is a major cause for concern as it may drive other projects/enterprises away thinking they'd have no market here cause everyone's wearing casino signatures. Or maybe I'm just yapping nonsense but I feel like this will definitely be a big issue for the growth of bitcointalk eventually.

It is definitely a big issue because it is crypto and even though if you really look into someones accounts and look for that person to make a mistake, you can't just catch everyone who does it, you need to be looking into that person. There is a big difference between "see if X person has done any money laundering via crypto casinos" and "catch everyone who has laundered money via crypto casinos", and that is at the core the biggest issue.

The bad people who does this already knows this, and that is why they end up doing something that would be dangerous in the end, and I believe that we are not going to end up with a result that would be easy to catch, bad people could just hire others and do their bid on their account and launder their money, then they will get the money into monero and receive it and suddenly they are hiding their billions, if you want something bad done, you can keep using the same monero to make the bad thing get done by someone else.

Long before the case that happened to Mixer occurred, the casino had taken steps to prevent illegal activities such as money laundering by criminals. The majority of casinos that advertise their sites on the Bitcointalk forum have policies in place and comply with government regulations. KYC policies will make it easier for casinos to monitor suspicious activity, they can immediately block suspicious accounts or illegal sources of money with the aim of money laundering.

Casinos will not suffer the same fate as Mixer, they always comply with existing regulations in order to maintain their reputation so they can continue to exist. Casinos that still advertise their sites on forums can be trusted, until now no casino on the forum has been sued like Mixer, except for casinos that have been proven to have committed fraud by using the money they use to increase their wealth.

Although you are right, I don't think you have explained yourself well. The thing about casinos is that you deposit to a different address from the one the casino uses to send you your withdrawal. Deposits are consolidated and withdrawals are processed from that address. Especially in casinos without KYC and without wagering requirements this is quite similar to a mixer because someone tracking you would lose track if you deposit 1 bitcoin and make three withdrawals to three different addresses of approximately 0.333 bitcoin (minus fees). But the casino does know your deposit and withdrawal addresses and could in principle provide them in case of an injunction.

It's very wrong of us to make the assumption that crypto casinos are engaging in money laundering or serving other money laundering purposes, what we are considering here in particular is under being a casino, then the services they offer, it is also important that we realized the fact that a casino that is KYC enabled will always try to make request from its users to support the requirements on KYC in other for them to enjoy using their services, yet every users are still subjected to AML agencies if the needs be including the casinos.

Usually businesses and companies laundering money are shell (fake) companies created and maintained with that sole purpose. They can belong to any sectors, but in fact, they don't produce or offer any kinds of services to the public, rather they launder money for some individuals issuing false invoices.

For casinos it doesn't seem a interesting practice, unless they are very greedy for profits, because the business itself is already pretty profitable following the regulations and making income from regular gamblers, so I really don't see a good reason why they would consciously allow such practices on their platforms. That would be a dumb move which could potentially kill the whole business once authorities caught something suspicious going on there.

The legal casino sites and the popular ones have their site license and the licensed casino sites are concerned about these issues and when someone goes to deposit a large amount on their site, KYC is demanded from them and that KYC document is stored in their database.  So if a person is using a gambling site through Mixer then it is possible to trace him through his KYC document if a complaint is filed against him.  So I think money launderers rarely use gambling sites for money laundering

I've read a lot about some shady activities of some casinos, even some are internally doing the work of m!xers to launder money, but I have not heard of any reputable ones that the government had treated the way they treat m!xers, which makes them different. The reason for this is that their (casinos and m!xers) value and mode of operation are not the same things. The businesses that the government had treated like that of m!xers that I know were those operating payment gateways online. An example is Liberty Reserve, where the company and its owner were busted and were charged with multi-billion-dollar money laundry charges. Their assets were seized and the boss went to jail. The reason is that they (m!xers and gateways) are custodial of money primarily for exchange and payment purposes, unlike casinos that are only doing their gambling businesses primarily, but hiding under that to do some illegal activities (that's if they do such at all, just establishing a difference).

It however gets better for those casinos that are fully registered and regulated, they are overseen by the government and might be exonerated of AML and other corrupt practices at least if nothing so illegal is traced to them. Even if such happens, I believe the government would be responsible enough to deal with the situation wisely since always closing such businesses that have primary good intentions can't mean well for the economy.

Exactly, they'll remain because there's a demand, but in terms of popularity, it will reduce as the forum aren't anymore promoting them, or the members in the forum. On the other hand, people might be hesitant in using a mixer as they might see the risk of not getting their money back, unlike when they are being promoted, they were able to build their reputation and resulted to more users using the service.

Using casino for money laundering is like kill yourself since the casino can easily freeze your coins and force you to submit KYC.

Mixer isn't the only tool to be used for money laundering, also mixer isn't always used for money laundering. Remember, if this forum not allow mixer, it doesn't mean all mixer is completely wipe out since the mixer is still exist and promoted in other place.

I'm sure regulators are well aware of this already and yet they haven't improve the KYC process yet on exchanges. I have several verified exchange account and I can say it's just easy to pass, so you are right, they can use fake information and documents to pass with the KYC.

Maybe in the future that KYC requirement will be stricter, like in our local exchange, you need to do some live video KYC application to be approve, so in that way, fake or stolen documents for KYC won't work as it would not match on the identity of a person who's recording live.

Nevertheless, at least there's a trail compared to mixers where they won't be able to easily find the trail.



With exchange, a trader will be paying trading fees and withdrawal fees, quite small though compared to gambling sites if they want to go break even, but will have to pay the commission or the juice which is normally 10% above in sports betting.