Bitcoin Forum

I was just wondering, what if Government officials will store their money from corruption in the Cryptos? What if they'll invest all their money in bitcoin so that no one will know about that corrupted money? Will it be possible? Is it really safe for them to use the virtual currencies a store house of their evil money? Because rather than having bank accounts, putting it on a wallet or investing all of it on cryptos will be safer. I want to hear your opinion.

But surely it is corrupt money (not kosher) however it will surely be in the can by investigators, and technological advances sekarag certainly can track it all. One thing we need to pray is not happening like that.

it could happen that cryptocurrency is used for money laundering from criminal proceeds, one of which is corruption. because the flow of funds in the crypto is very secret. perhaps in some countries that have worked with cryptocurrency can easily track the flow of funds. but if in a country that has not worked together I think it can be used for crime.

I bet some of them are having their money in cryptos already, but those people usually have many ways to hide their money, like creating societies with front men and making different international transfers through tax havens.

It is really possible for government official to use cryptos and invest their money from corruption into bitcoin and other alts, this one reason why some countries are not in favor in the idea of cryptos because it is decentralized and does not have a trail upon completing transactions. I think some are actually doing this stuff and maybe many government officials learn the idea of bitcoin investment and trading. I just hope this would not make bad reputation for crypto industry.

   Some of russian officials bought bitcoins and dont even hide it, besides state lets deputies dont declare their profit in cryptocurrency field for last year. No doubt all it corrupts already corrupted system, I even think that state itself invest to bitcoin because realizes it is part of our future.
   I think authorities are able to trace and catch a cryptocurrency user if they really want it. It may be really complicated but money solves everything

Bitcoin is only Pseudo anonymous, which basically means that the owner of the coins can be identified if they use those bitcoins in the incorrect manner. <re-using Bitcoin adresses>

Their problems start when they want to cash out to fiat currencies or when they are buying expensive assets. These companies have to deal with payment processors and third party services that has to adhere to KYC/AML regulations.

In the end, these people have to explain their income and expenditure, when they get audited. How do you explain the $500 000 car and the $1 000 000 house on a average government income?

I think they can use blockchains and cryptos for their corruptions, because they can put the money on the wallets without anyone knowing that they are them. They can always use anonymous emails and different persons as for their identification. And they will have the very reason that they earn all that money through investing in cryptos as cryptos can give you a huge amount of earnings depending on your investments. Let's just hope that they will not do it for their evil doings.

The Police is not dumb, they have a cyber police to track all the transaction the corruptors made.
And also, god will lead the way for arrest the criminals

Stealing money and transferring to bitcoin has been the major fear of the government. Really, it will be a very safe means for corrupt politicians to make themselves "richer" by hiding stolen money in different wallets, all they need to do keep the different seeds save.

The Police isn't dumb, some policemen were. I've seen a lot of those though.
There are specialized agencies that can investigate these kind of matters but not all Countries have access to them.

A Country that is vulnerable to Graft and Corruption are the great "investors" of the Cryptocurrency market.
Where do you think those $400b came from? I'm positive that about 20-40% of it came from corrupt officials.

God, please, no talks about religion  :-X

there's a great expression on the subject. Loudest screams - stop THIEF - the thief

A lot of politicians in my country are already doing that. They are sending tax notices to common people who are investing heavily in crypto. But they are themselves involves in such practices. They are able to get away with all this only because they are doing it through fake profiles registered on various exchanges. For instance, suppose a politician has got 3 servants working for him. He will start investing in accounts registered with details of those servants so that he need not pay any taxes on that investment or explain that source of income.

and why would they want to do that?
you see it is a matter of comparison between the different options. on one hand we have bitcoin which is a decentralized currency that is still small, with limited supply and they can not control. they may affect it but never control it.
on the other hand we have the centralized fiat system which they fully control, has unlimited supply and they can print it anytime they wanted.

which one of these do you think they will choose for the reasons you have in mind?!!

The hard truth is major money involved in crypto currency would be black money and corrupted money . But even these moneys has to manage properly .Most of the corrupted politician in my country are least educated . There is high chance of getting cheated if they don’t have proper knowledge about bitcoin or crypto currency.

It may just be. If they invest the money of their corruption in bitcoin, then law enforcement can no longer be investigating their corruption case. Because their jurisdiction beyond the bitcoin in searching for cases.

If the government is smart they can still trace the money but they cannot withdraw it unless the witness will tell that he/she is guilty on corrupting.

Yes, this is what the bitcoin and other anonymous tokens, advantage, so in more corruption in some countries, so they will ban the bitcoin, because encryption currency market may lead to the outflow of assets, this is they don't allow,

Yeah it is possible but they will get caught when they are converting their fiat into crypto because large amount of crypto cannot be bought through direc money so he need to use the bank account if he uses the bank account then his money will be recorded.And we also need to regulate the exchanges so all the transactions will be recorded if any big transaction then it will get caught.

lol, don't give them ideas dude. it can be worst if they hide their money in bitcoin.
it will make bitcoin not allowed more in many countries.
i think government should be restricted to spend their funds to bitcoin, so their asset is transparent.

Correct! I was about to say the same thing. Converting money in to bitcoin through a centralized exchange will not help them to hide the dirty money trail and it will be easier for the government to catch them quickly. But anonymous currency like xmr or deeponion will be an ideal choice. Also while coverting they should make a cash deal instead of using any bank account. This way the trail can be hidden, otherwise, everything will become public.

Corruption might be happen through bitcoin because of its anonymity. Government officials can hide their corrupted money in bitcoin. It is easy for them to hide their identity.

That’s one way of looking at t and by our knowledge in bbitcoin there is a possibility that this is actually happening right now and especially on the data that we have on how bitcoin is banned due to the nature of how it is viewed by our officials that this is bad and that this is something wherein they would have to really prove a point that they would still need to have data to support that even with the shady transactions that can be done in bitcoin that it can still be solved and traced

I think now many corruption of government officials have already done so, they use bitcoin to money laundering, this will increase the difficulty, corrupt officials, so someone is for this reason the bitcoin trading is prohibited

Not only the government official,many of the millionaire inverse their money in bitcoin.Millionaire had became billionaire by investing their money in bitcoin.Bitcoin is the safest one to inverse your money.I don't know the corrupted money are invested in crypto currency.But it is possible to do that.

It's not that simple to do corruption using crypto currencies, experience was teach us how BTC-e was seized by the FBI.
The main reason was money laundry activities. Currently, almost all exchangers apply the KYC rules, where we must use the original data with provided scanned document to verify the account. so that it can conduct trading and withdrawing balance in large quantities.

I think if corruptors just save in the wallet only, it will be easy for interrogated, but the difficult is when crypto is already used for transactions, it will be difficult to track.

so,  this issue is to be attention by any country that will legalize crypto, the government must make strict rules for crypto law, so can to prevent or minimize crimes such as corruption.

Corruption is just like a normal word for now since there is no country who does not have any corruption, and here if they will corrupt coins then it is a normal thing, they are corrupting the earnings of people here in crypto by imposing a tax.

i think its very possible.no need talk corruption,rich people even try to hide tax using crypto.because goverment cant trace them at blockchain untill they hit exchange and withdrawal their money.

The problem with parking illicit capital in altcoins is the lack of actual confidence in them. Bitcoin is like Gold. Despite the fact that there are more precious metals, people in most cases always go for Gold, and in this case they will always prefer to have their capital parked in Bitcoin. The only thing they might end up doing, is using Monero as a first step to get rid of any potential taint, to have it later converted back to Bitcoin through decentralized exchanges. And yes, I do believe that OTC is the most preferred way to either sell or buy Bitcoin in this case. I wouldn't even be surprised to find out that OTC volumes have significantly surpassed the volumes on exchanges at some point. People more and more move away from centralized services, which is a good thing.

It is possible, you from the government and asking for advice?  ;D ;D ;D ;D ;D ;D ;D ;D :) :) :)
Bitcoin doesn't care where the money came from when you buy them, but be careful not to withdraw them in the future at once since it might catch some attention from any government employee or the bank itself for the large money withdrawn at once, then they will report you and you will be listed for money laundering.

This would be called moeny laundring, for many years courrupted govermment officials and scammers have tried to put their moeny either to hide their corrupted moeny or to escape taxation, so they offshore their profir by investing in forigner companies or stocks or they invest in gold, with the cryptocurrency becoming more and more popular and bitcoin having such high price, it comes to no suprise that some will try to use it for frauding and money laundring, but it is still risky because of its volitale price, and this where the govermments's fear comes from the cryptocurrency.

There are certain instances, like in South Korea where officials state that they're going to be banning bitcoin, or imposing strict regulations --> the market crashes due to the news, these officials buy massive amounts of coins, the statement is retracted and then they made a good amount of money. They didn't get away with it, but I wouldn't doubt that it's happening all around the world.

Insider trading is possible with anything though related to government. It's probably easier for them to influence whatever they want in FIAT and then deal with FIAT.

If seriously why act like a dumb shit they are already using bitcoin to store their black money in fact there are many who have already bought bitcoin and easily hid there black money from the government
Government complaining that bitcoin is scam but in reality they itself are saving there future

It is possible for now. But in future cryptocurrencies will not be anonymous I guess. And I really hoping for that.

Hmm.. Yeah? I think they will invest or put it in a wallet so no court or government can trace if this person have cryptocurrency, because it is decentralized.

They may use cryptocurriences to held the money that they have stolen but it doesn't deny the fact that people will know that the money has been stolen, only that they can't trace the stolen money to the person who who did it in the first place.

In my country, I can guarantee that this is happening on a very large scale. Let me explain how it is being done by a local politician who is quite popular in  my area. He collected the KYC for residents in his locality saying that he will get certain election cards made for them which will result in privileges for the people. he then used these KYC documents to open bank accounts and  register accounts on different bitcoin exchanges in my country. Most of the money he earned through corruption is invested in these accounts.

Cryptocurrencies give us freedom but we have to pay a price of it - lack of control of criminals. We won't be able to track money anymore since transactions are anonymous. There is no method to distinguish illegal payments from legal ones. I think taht is the biggest flaw of anonymous payments. However, governments have been collecting more and more data about us only because they wanted to protect us from criminals. Let's see what they will think of this time.

I am pretty sure they already do this. While bitcoin is not truly anonymous, it may be enough to break an obvious link or disrupt an official investigation so they could not be caught red-handed.

Well good morning Sir! what you have been wondering is already into business. You might not be very well aware but most of the government officials might already be doing such acts to save themselves from scrutiny. This is a large criticism of bitcoin and cryptocurrencies that they entail such a culture of anonymous payment where even a criminal can get away by storing its money in digital form.

The thing is, the corrupt government officials are very smart, they can even hide all their assets from any banks by making secret bank accounts, those accounts may named to different people, or whatever, but if it is really true that the money will be discovered ising banks, then there is no corrupt officials right now. But they always make a way in order not to be discovered. And it is easy for them to invest their assets in bitcoin because they are already safe through banks. And one thing, the Government didn't know that the money invested in bitcoin was from corruption. Because if it passed through banks that means it is clear and no problems at all.

Yeah this is happening. And government officials have been using bitcoins as a shield to save up their black money. They are not allowing us to use them for raise in our financial positions but on the other end they themselves keeping their lines safer. They prefer to turn their black money into official and legal currency where no one can check them and they managed successfully.

If a government releases its crypto, it may be considered a new step forward, but it is risky. The total amount of supply's fixed, so the number of people who own too much will make the value go up, the people in the government will be the most benefit from it.

If it is easy to catch them, then why is it that there are still corrupt government officials as of today? They must have caught a long time ago if it is easy right? That means that they are smart enough to outsmart everything just to hide their money. They have so many ways just to hide it. If they can't catch it from the banks how come they can catch them from crypto wallets that has so many ways to hide money? One thing is they can create many accounts and spread all their assets. Besides no one knows that it is a corrupted money yet. So it will be really difficult to catch, it is never easy. As you may know, some of the police or higher ups are puppets of corrupt officials. I just hope that this won't happen because it will be a bad thing for every country.