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Topic: Money laundering via BTC - page 17. (Read 39389 times)

legendary
Activity: 3514
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English ⬄ Russian Translation Services
March 29, 2017, 04:45:32 AM
It turns out that bitcoin is a terrible tool for money laundering. The trouble is that all bitcoin transactions are tracked so if they want to catch you, they can go back into the system and figure out who you are

In fact, the final outcome may depend greatly on the efforts applied

Basically, I agree that Bitcoin is not very overall for money laundering (for the reasons you mentioned). But there are a few ifs that could make laundering money a viable option (a disclaimer, the following is purely for educational purposes, I don't in any way endorse money laundering). First, you can transfer bitcoins without leaving a trace on the blockchain, e.g. by using Bitcoins sticks like Opendime devices which allow hand-to-hand transactions in pretty much the same way as with cash money. Second, with the advent of off-chain payments (e.g. with the introduction of Lightning Network), you would be able to transfer massive amounts of wealth without leaving a trace on the blockchain either. As an aside, mixers like miners should be strongly opposing LN since, essentially, payment channels which could be set up after LN is activated would work as instant mixers on their own but with substantilly low fees and in a more distributed (read secure) manner
sr. member
Activity: 658
Merit: 251
VIMee - Social Network
March 29, 2017, 04:35:12 AM
I don't know why people blaming bitcoin, Fiat is under government control there are many people who are doing illegal activities with fiat currency also. It completely depends on the people who are doing it for illegal activities, don't blame the bitcoin, blame the people who are not using it wisely.
member
Activity: 112
Merit: 10
March 29, 2017, 04:26:40 AM
Money laundering via bitcoin is possible as this is anonymous and cannot controlled by the government. As this can hide the identity of a users. As long the process can adopt by the users its possible.
Yeah right, this is a big problem because the Government did not have access to control the bitcoin. This was the reason the Government prohibits bitcoin, I worry bitcoin can not survive for a long time.
legendary
Activity: 1190
Merit: 1002
March 29, 2017, 04:07:56 AM
Money laundering via bitcoin is possible as this is anonymous and cannot controlled by the government. As this can hide the identity of a users. As long the process can adopt by the users its possible.
Anonymity is a major reason that helps users to involve into money laundering using bitcoin. At the same the number of people into such services were not much aware of digital currency. Based on this the money laundering through dollars were high compared to bitcoin and other digital assets.

That is true to some extent but the reason to create Bitcoin was for the silk route to transfer money through Bitcoin, but when silk route was vanished by FBI after that bitcoin became public and even then their are users who are using bitcoin for so many illegal activities and money laundering is one in them.
legendary
Activity: 3234
Merit: 1214
Vave.com - Crypto Casino
March 29, 2017, 04:03:11 AM
Money laundering via bitcoin is possible as this is anonymous and cannot controlled by the government. As this can hide the identity of a users. As long the process can adopt by the users its possible.
Anonymity is a major reason that helps users to involve into money laundering using bitcoin. At the same the number of people into such services were not much aware of digital currency. Based on this the money laundering through dollars were high compared to bitcoin and other digital assets.
full member
Activity: 168
Merit: 100
March 29, 2017, 04:01:56 AM
It turns out that bitcoin is a terrible tool for money laundering. The trouble is that all bitcoin transactions are tracked so if they want to catch you, they can go back into the system and figure out who you are.
sr. member
Activity: 392
Merit: 250
Best IoT Platform Based on Blockchain
March 29, 2017, 03:56:34 AM
I believe Bitcoin is viable to be used to launder money today.
But how was it viable to do the same back 7 to 8 years ago when the price was dirt cheap and the market cap was just some small millions?
Not to forget back in those days there were no exchanges and no P2P market to facilitate Bitcoin-fiat transactions.
So far I have yet to see any actual solid evidence of money laundering with Bitcoin except unvalidated MSM news about it.
hero member
Activity: 868
Merit: 500
March 29, 2017, 01:47:05 AM
I dont see why soo many problems, before crypto word money laundering were already an issue, and people hide and made their dirty money into clean with a fake business, even looking clean business. Bitcoin and crypto world has helped a lot of them already and will keep, but i doubt they wanna to risk their money and business into crypto world thats has a lot volatil moments.
sr. member
Activity: 784
Merit: 250
March 28, 2017, 03:16:33 PM
Is it possible to do money laundering via bitcoin? I mean as no one knows if you have bitcoin and how much bitcoin do you actually own, it could be used to convert black money to white right? Or at least store your black money without much hassle. But there is the risk of its value but I think for people who have lots of black money and don't want to be caught, this risk might be worth taking for them isn't it?
What are your thoughts?
Yes it is, this is the reason why before bitcoin became banned in the other country, due to other nation thought that bitcoin will be a gateway to use by the bad person who will going to use it for illegal activities. Though we all know bitcoin was very open unto it because its an open source instead.
hero member
Activity: 1190
Merit: 525
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March 28, 2017, 02:12:18 PM
Money laundering through bitcoins has been at its peak when demonetisation is at its peak when the price of bitcoins gone high the most .in india here one politician from the member of the parliament declared bitcoin as the ponzi scheme .well that explains education is required.

Yes, education is needed, maybe this politician declared Bitcoin as a ponzi scheme because indian scammers are creating ponzi schemes with Bitcoins and organizating meeting in clubs and hotels to lead people to invest in such schemes. Not only with Bitcoins, but they create fake alt coins (ponzi) to lure people into this trap, promising high returns.

I already saw many pictures on Facebook about these events.
full member
Activity: 266
Merit: 100
March 28, 2017, 02:07:07 PM
Money laundering through bitcoins has been at its peak when demonetisation is at its peak when the price of bitcoins gone high the most .in india here one politician from the member of the parliament declared bitcoin as the ponzi scheme .well that explains education is required.
legendary
Activity: 1218
Merit: 1000
March 28, 2017, 01:54:18 PM
Money laundering via bitcoin is possible as this is anonymous and cannot controlled by the government. As this can hide the identity of a users. As long the process can adopt by the users its possible.
Well, in fact it may have been frequent. there are some sites that make an imprint of the mixer bitcoin transactions actually become impossible to be tracked, and is sometimes used for something very confidential transaction.
legendary
Activity: 3514
Merit: 1280
English ⬄ Russian Translation Services
March 28, 2017, 01:17:08 PM
Almost any form of currency can be used for money laundering.  However, some forms are more efficient than others, some are quicker than others, and some are less transparent than others.  So, while bitcoin can be used to launder money....it is not the most efficient, nor the least transparent means to accomplish that task.  Cash for art....art to auction....is the biggest method of laundering money today

I don't quite understand how this method would work in practice

Do you mean to say that you try to sell something at an auction which purportedly has some historical value and then buy it yourself for a lot of cash through a straw man? Do you really know that this works in practice? As I see it, the auction houses should confirm that the item you are going to auction really has any such value (e.g. the Roman sword you are selling wasn't actually forged a few years ago and then artificially tarnished). So your method may not be quite feasible in real life

I've never considered laundering money in any form; however, this is how it "could" work: use cash to buy valuable artwork, sell valuable artwork at auction.  When the artwork (or other collectible) is submitted to auction, there is no reference to, nor record of, the price paid for the article because cash was used in its purchase but there is record of its selling price which can be reported.  Same with coins: purchase rare mint coin with cash, sell rare mint coin at auction....On the books, the coin was found in pocket change at face value, but sold at auction for rare mint collection value

It seems that I see where you are getting at

But you still kinda miss an important thing here. You may buy some valuable stuff from somebody via cash, of course, but your seller might report on his sale since he should also somehow prove the origin of all this huge sum of money. So he declares his income, from whom it came, and then you are basically done. For example, in the US all purchases involving cash in the amounts exceeding 10k dollars should be declared to the IRS including the identity of the person (or entity) whom this money was received from
sr. member
Activity: 882
Merit: 251
March 28, 2017, 12:24:53 PM
Money laundering via bitcoin is possible as this is anonymous and cannot controlled by the government. As this can hide the identity of a users. As long the process can adopt by the users its possible.
hero member
Activity: 714
Merit: 500
March 28, 2017, 10:28:22 AM
:)Very simple stuff. Create business, build business, accept btc and buy your own service with your own btc. Pay the small amount of tax and you have clean money. One simple method of hundreds or thousands out there.
And where would the money actually be coming from? You're paying bitcoin to yourself, then how are you converting it to real money? Don't you need third party for that?
newbie
Activity: 14
Merit: 0
March 28, 2017, 09:37:59 AM
 :)Actually bitcoin it self is cleaner than any currency, we don't have any dirty money only literally and people only need to launder money when they are not able to explain and provide a legal reason as to how they've got and obtained that money.
People trying to do it with bitcoin, not possible if miners refuse to sell or any coin holder refuses to sell but when you get your coins you are no longer need to be worried because just after a mix no government can link you to anything whatsoever.
hero member
Activity: 742
Merit: 500
March 28, 2017, 09:30:52 AM
Is it possible to do money laundering via bitcoin? I mean as no one knows if you have bitcoin and how much bitcoin do you actually own, it could be used to convert black money to white right? Or at least store your black money without much hassle. But there is the risk of its value but I think for people who have lots of black money and don't want to be caught, this risk might be worth taking for them isn't it?
What are your thoughts?
Yes,for that reason i think most of corrupt people in india invested in bitcoin to hide their black money when demonitization was in progress.Now the government is getting suggestions to announce bitcoin as illegal.
newbie
Activity: 13
Merit: 0
March 28, 2017, 09:25:56 AM
 :)Not really. Bitcoin is pseudo-anonymous meaning that one can trace back the money to the person who transferred it. Otherwise it is pretty much the same as any fiat.
hero member
Activity: 896
Merit: 500
March 28, 2017, 08:58:46 AM
This is not new to bitcoin. That certainly has always happened, it is associated with bitcoin and criminals. Bitcoin is created for business and trading purposes, however, besides the convenience, there is always a darkness surrounding it, which is easily exploited to do the illegal work, it can not be So, the crime is easy to use it to commit law offenses, money laundering, bribery and corruption ... etc ... we can not avoid it.
It is associated with bitcoin.
newbie
Activity: 14
Merit: 0
March 28, 2017, 07:48:36 AM
 :)Very simple stuff. Create business, build business, accept btc and buy your own service with your own btc. Pay the small amount of tax and you have clean money. One simple method of hundreds or thousands out there.
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