Why do people need to use Bitcoin for Money laundering?

Nissan-GTR

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Quote from: Kprawn on March 03, 2018, 10:36:39 AM

Between 2004 and 2010, HSBC laundered Billions of Dollars for the Mexican Drug cartels and nobody blinked an eye. After

7 years of doing this, they got busted and they paid US$1.9bn in fines. {This could be recovered in profits, within a few

weeks} Most people saw this as a slap on the wrist for the people who were involved with this. Not one person working for the

Bank got jail time for doing this. Roll Eyes

https://observer.news/featured/5-years-ago-hsbc-fined-record-us1-9bn/

Ross Ulbricht, was sentenced to life in prison without parole for creating and running Silk Road, which allegedly facilitated

the sale of $250 million worth of drugs.

Why are we seeing such double standards, when Bitcoin is involved?

Well, we can say that Bitcoin is a very accessible platform for the criminals to take advantage and made this as a way for them to gather more and more money who will catch up to the bait since Bitcoin supports anonymity and we can say that criminals these days doesn't come only having a knife, it comes with an excellent ability with regards to technology so double safety must be practice.

yogeshkale

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Bitcoin is easy to use for money laundering never anyone trace and doesn't know that who is the owner of bitcoin. Bitcoin is a most effective tool for the money laundering because of its decentralized and untrackable.

kamoto

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Well ... I do not know all the reasons, but I've heard about such a funny thing ... in general in some countries (even today) bitcoin is ... nothing. Really. Somewhere at the legislative level, this is money. Somewhere it is considered property. And in some countries, crypto-currencies are not something at all. Therefore, you can transfer money to "nothing" and already by law you are clean.

bitcoindusts

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Quote from: Rashid555 on September 13, 2018, 12:03:10 AM

I think that crypto is using for every thing if we talk about the money laundering or terrorist attacks then the first name comes bitcoin and crypto and it is not the problem of crypto but people if use it we should use it for good purpose.

Indeed Rashid. There is a big distinction between money laundering and bitcoin being used for illegal activities.

You see, money laundering is illegal money sent out in concealed transactions (usually overseas) so that the money comes out clean in another form of fiat currency and then used to purchase legal property and assets or simply spent legally. Whereas the issue with bitcoin is not illegal money (unless of course if the money used to buy bitcoins are from an illegal means), rather pseudonymous transactions that are then used for illegal activities.

As sad as it may be, these are part of any cash system, even if we go back to bartering, activities as such will always spring out somewhere, somehow.

libert19

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Quote from: Coffee135 on April 17, 2018, 05:16:56 AM

Quote from: ?? on ??

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.

Bitcoin bypasses the banking system, but my personal experience is that at least in the Pearl River Delta, that there is less dirty money in the bitcoin ecosystem than in the traditional banking system, which is one reason the Chinese government tolerates and even encourages bitcoin.

I have not heard the Chinese government encourage the use of bitcoins. All governments don't like bitcoin. But some governments forbid bitcoin by a strong-willed decision and some governments take a wait-and-see attitude. They do not prohibit or permit it. Fake money laundering using bitcoin invented banks to fight its main competitor.

I have heard cases where government official were involved in using Bitcoins it's just that they don't want common to people to get into, since it would be harder for them to track and tax.

Rashid555

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I think that crypto is using for every thing if we talk about the money laundering or terrorist attacks then the first name comes bitcoin and crypto and it is not the problem of crypto but people if use it we should use it for good purpose.

player1001101001

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People have been using bitcoin for money laundering since form very long. They are using it because it remains anonymous as well as no one cannot able to knows about the owner's name. That's why people are still using it for money laundering.

naily

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the reason they use bitcoin to do money laundering in my opinion is because it is anonymous bitcoin, so the identity of the bitcoin owner is unknown, and this makes bitcoin worse in the eyes of the global community

OSYA

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The decentralization makes a bitcoin powerful and attractive to the investors. This feature attracts criminals too and gives them a chance to launder their money. There are 2 sides of one coin.

mooccowmoo

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Because bitcoin is a decentralized cryptocurrency, I think it's just a very good tool for money laundering and not just for money laundering but for some other criminal acts involving money.

iMark

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Quote from: teklang01 on September 12, 2018, 04:25:26 AM

It is because the cryptocurrencies are decentralized and no central organization that is aware of all the transaction that is happening and the transactions are anonymous then some criminals used it to do their illegal activities. That is why here in our country, our government wants to regulate the cryptos for the protection of the people and the financial system.

Yeah anonymous bitcoin facilities are right to use as money laundering because they very easily remove traces of their wealth in bitcoin, thats why the government is very afraid of these possibilities and threats. you know the continuation, they definitely forbid bitcoin.

*kimcil*

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Criminals can use Bitcoin like collecting ransoms easily and without having to reveal their identity. so most of them make money laundering using Bitcoin, Bitcoin is safe and anonymous, so they will put all their money into Bitcoin.

adjong

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for me that's not the problem because for me only helps bitcoin for people. Because people actually do wrong because because of the poverty of their country because of the government who abuse the poor People have criminalized money laundering.

CainCoin

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Just because transferring money through a bank could be impossible at times because many banks have some anti-money-laundering mechanisms in place and they simply cannot transfer money without sufficient proof of its lawful origin. Bitcoin, unlike banks, doesn't require anything to transfer as much money as you wish with minimal fee at that. So, why shouldn't they use BTC? Cool

btcmmo9314

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I think the user has been using illegal, completely unrelated to bitcoin or crypto. If someone uses it for illegal activity it is dangerous. Legitimate use it as well.

xWolfx

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For the same reason they need to use companies for it, to try to avoid detection.

So far they probably had a decent level of success with it, especially because of those services who mix your Bitcoins between multiple transactions so it's not clear from where it really came from. I even saw people who offer a stupidly low amount of dollars for an ID and Passport pic and there is people competing on being the one who gets picked for that. For this reason it's so easy.

As Blockchain gets developed and understood better, it might be a lot harder for people to hide while doing those thing of transactions. Nothing is a 100% accurate measurement when it comes for security though, but doesn't have to be that easy.

kucritt

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the answer is one, why many people is use bitcoin for money laundring, because bitcoin is anonymousity and untrackable, if the criminals want to move money from a country to another country directly they can use bitcoin because its untrackable and anonymous

kyledavid

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simply because many people are evolving too . since most of people worldwide use the internet and many do invest online bitcoin is an online money where they can easily steal money from people from creating fake sites which will make people trap to their scam investment platform . I guess we must be very careful in investing online since there are lots of hackers in the internet

classictee

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https://eloncity.io/

It is highly easier to us bitcoin for money laundry than fiat currency. Bitcoin can not be traced to anybody aside the wallet that will shows it. But fiat can be easily traced to whoever own it.

Davido1174

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Most of those people like bitcoin because of the anonymity of it and this makes it very convenient for them to loot money and move it around without stress

Topic: Why do people need to use Bitcoin for Money laundering? (Read 1994 times)