Topic: Money laundering via BTC - page 38. (Read 39389 times)

they are adding a lot of "regulations" that affect the bitcoin transfer, these are more aimed toward controlling the movements and info required at fiat endpoints, the thing is that a fiat endpoint is unnecessary at all now because bitcoin can pretty much get anything around here that a USD can.  i found it interesting that you used the term "off-shore", basically digging up a term that referred to fiat accounts, but it is a pretty cool concept to bring into crypto.  the coins themselves are locationless, the network in 147 countries.

if you apply the same rule set that is applied to banking, the location of the banks operating center is the location of the bank account, which is basically electronic funds just like bitcoin until withdrawn as currency.  so, using that rule, if your coins are stored on an exchange, online wallet site or within the wallet files of another type of site(faucet, gambling site, scam, whatever), the location of the business that runs that site is where your account is.  paper wallets are without location.  hardware wallets without location and any and all lost wallets are without location.  countries have just changed the way that international laws are handled.  a russian bitcoin exchange that is exchanging btc to usd follows the russian law set, however, the usa is attacking and heavily controlling the movement of those funds to a usa based bank account or other account.

pretty neat way of thinking about how an intangible object can be seen from so many different ways. 

any reguatlat

Bitcoin is un-regulated as well, so it is very easily and readily available to launder to anyone. Perhaps a lot of criminals are using btc now as tool to launder. And in today world, money laundering is not just cash, you could have money offshore that you want to move. You can just buy bitcoins and transfer them to a any country that you like.

At least we must use the other extension such as mixer to erasing our trace. All of the elements was building in bitcoin are same with the fiat totally. but the bitcoin has built by the algorithm.

this is so true.  some of paypal's high end security issues that people bitch about are there because of money laundering through them for at least a good five years.  using 1-5 paypal accounts and the fact that transfers from one account to another were near instant for a long time meant some things could be done through paypal.  plus the fact that paypal would rather sit on a negative balance and chase those people for the money versus prosecution meant smaller risks with the right precautions.

prepaid credit and debit cards have seen a huge boost in laws and regulations because that was an easy way to turn dirty cash or dirty credit cards into easy to spend money. 

just in the last ten years and just using online methods, we have personally seen through our office more than 100 ways to move money with stealth.  keep in mind that just because a method is used to attempt making clean money does not mean that it was sucessful

It is not just bitcoin you can launder. Laundering is nothing new. It just feels easier because we can do it from the comfort of our home on the pc/mobile. Outside the virtual world you would launder your money by buying and selling assets and dilute the money down that way. So instead of buying an expensive painting to hide your black money you can buy bitcoin and launder it. Also you can use the stock market just like you can a bitcoin exchange. The stock market uses fiat though.

i know what i am doing when moving less than pure white funds and i agree with some of your method observation, but you can't say things like always because nothing is always true in these cases, if these guys ALWAYS, only made caps for effect, not being mean, then none of them would have ever been caught.

and these days it goes beyond just the private keys, it goes all the way into using completely isolated browsers on isolated pc's.  they rarely put that much effort into investigating small time shit, but any criminal activity should been viewed in the light of that show "cold case files", crappy show, but the concept is sound that what you can get away with today just may become elementary when looked at with the technology of twenty years from now.  

edit:

and laundering btc and other coins is one of the best uses for smart contracts.  a shadowed address and key set has a smart contract attached to it that when the address balance reaches X, it fires the balance to 10-100 different addresses in small amounts.  a series of contracts like the first are on those addresses and so on.  within a few seconds, the funds can be shot through thousands of addresses and end up in 1-5 final destination addresses and handled from there.  this is the simplest smart contract.  if the address has 0.9 BTC, a manually created TX for 1 BTC is put together with the single input and 10 outputs, it is sent to the chain but cannot process because the funds are insufficient.  once that address gets another deposit or two and the balance hits the 1 btc mark, the tx completes.  that is not the exact science of the chain, but that is the method of creating the tx

Yeah sure they do, bitcoin hasn't been around too long but all the "black money" holders use it   And what's this about a different set of private keys to hide the funds, it wouldn't matter what keys the holder had, if the funds are transferred to a bitcoin address then that address is going to show up on the public blockchain for all to see.  

Yes, Bitcoin can be used for money laundering without any hassle. The pseudo-anonymity of Bitcoin doesn't allow anyone to look into other's reserve.

But in my country, it is only possible to buy Bitcoin via Bank account. So this restricts non-record of money in form of Bitcoin upto certain limits.

I think it hardly matters, if we are unable to stop laundering via fiat money then we have no right to discourage bitcoin on this ground!!

black money holders always use bitcoins for money laundering.using different set of private keys to keep  their black money,so that they cant be traced .on the other hand they want to make more profit by just selling little by little when the price is high.

i am confused, the "real world", the "real world" has places everywhere to spend your btc, there is never a reason to transfer the funds to a fiat

If with btc transaction only it could be possible, however we need to convert it to fiat so we can use in real world. We do have expenses in life and for sure you know we cannot use our bitcoin to pay for that. If we are not suspected then we are safe but if we are, then it's going to be a problem if you launder funds.

it is not just possible, it is easy to do, but just not following the methods that most people will spout out here, those are usually based on the past methods that worked but are not good enough now

Without any doubts this is possible but you should than pick more options to launder it on some way with bitmixers its already for a part possible.

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.

after all, each user is free to do anything with bitcoin. the government will not know if the officials do a money laundry. but the nature of bitcoin anonymous and decentralized made the government fearful

I am sure some of the investigators have found the end addresses for some of these coins but that address could just be a paper wallet that is linked to nobody.
The only chance the authorities would have in making an arrest is when these guys try to cash out to fiat.

I think back on it all back to the user rather than on bitcoinnya, I thought why bitcoin can be used as a venue for money launderers, yeah if it bitcoin really wrong in this case, I believe bitcoin future will find a good function to be the currency in which others do not see the black side of bitcoin

in the beginning btc was a lot easier to use in that way, day by day it begins to equal the range of a pre-paid credit card, it doesn't have your name on it, but most agencies can track it to you pretty easy

Well aside from being crypto BTC is a currency and money laundry always happen to currencies. So its very much likely to face the same fate as fiat.

Because private investigators don't stand a chance of finding it,  not even through blockchain analysis companies. If the crypto isn't cashed out to fiat in large amount then it's a no go. They'd have mixed it,  broken the link, found a trusted fixer and cashed out a few mill when they need it. Job done.