Money from bank hacks rarely gets laundered through cryptocurrencies

[20kevin20]

Honestly very few governments other than totalitarian regimes actually care about improving society. China, for example, does horrible things to some of its citizens but the net effect is China as a whole becomes stronger (at least in their eyes). The only reason the US now embraces some crypto is they are finally able to start taxing a large portion of the user base. Once government can take their cut they're all to willing to let it bloom. The US government could care less about improving people's access to money because the banks have such a stranglehold over the politicians.

I'd rather believe the only reason the US government started supporting crypto is that they found a way to trace and identify citizens using them in order to monitor the legality of their holdings. If blockchain analysis wasn't a thing, they would've pushed back other cryptos as well - but it actually becomes an advantage for them. Some people get into BTC wrongfully believing they're going off the grid, and that's a perfect catch for authorities.

[posi]

Firstly it will silly for any hacker to launder the money stole from through cryptocurrencies when he can easily laundry the fund by cash and board a secret private jet and save the fund in one the powerful secret global bank in Swiss etc.

Honestly very few governments other than totalitarian regimes actually care about improving society. China, for example, does horrible things to some of its citizens but the net effect is China as a whole becomes stronger (at least in their eyes). The only reason the US now embraces some crypto is they are finally able to start taxing a large portion of the user base. Once government can take their cut they're all to willing to let it bloom. The US government could care less about improving people's access to money because the banks have such a stranglehold over the politicians.

I'd rather believe the only reason the US government started supporting crypto is that they found a way to trace and identify citizens using them in order to monitor the legality of their holdings. If blockchain analysis wasn't a thing, they would've pushed back other cryptos as well - but it actually becomes an advantage for them. Some people get into BTC wrongfully believing they're going off the grid, and that's a perfect catch for authorities.

On the contrary. The reason why the supported is the high level of tax they are getting from crypto which is one of thing they needed they needed the most for the betterment of their citizens and even thats the reason theres no way they identify the holding of their citizen which use the combination of privacy wallet and Bitcoin tumbler.

[bitbunnny]

I think that there are no exact numbers of money laundering through cryptocurrencies. It's not easy to trace all such transactions and proof they are connected with money laundering. This is much easier with fiat currency although I think such problem exists and that is why crypto still has bad reputation.

[pixie85]

Hmmm. I don't know about that. I think the only thing that differentiate cryptocurrencies and traditional ways is time. traditional ways are proven to be one of the safest and known ways to launder money for those hackers but that doesn't mean cryptocurrency can't compete. It's only a matter of time before hackers starts migrating to using privacy cryptocurrencies to launder money once it gets more known and developed.

Not an anti-crypto btw lol. Just stating my opinion.

Probably before this migration happens all exchanges will turn to KYC.

You can hide your crypto but can you really withdraw big money without being thoroughly screened by both your exchange and the bank that receives the withdrawal?

The best and the most anonymous money is cash. Cryptocurrencies leave an obscure trail but there still is one. Cash doesn't leave any unless you're caugt stealing it.

[slaman29]

It is actually not surprising to hear that dirty money are not being widely laundered through cryptocurrencies which have to be transparent in order to stay auditable and verifiable. Dollars are used for money laundering, because no one is able to ever estimate its total supply. Jokes aside, it is not because of that, at least it is just one of the possible reasons why it is used. Criminals, drug dealers, money launderers, they all tend to use the most effective tools to commit their crimes. They have no room for error, that is why they prefer anonymous cash over transparent bitcoin. That is why they prefer traditional banks over transparent and open blockchain. Banks are ruled by greedy people seeking for additional fees while bitcoin is ruled by neutral code, which cannot be bribed by criminals.

You have much to learn about the real world haha. Banks are the biggest crooks and big organizations too, they claim to be transparent and do their audits every year with big companies but still hide a lot of dirty money in the books.

Dollars are used for laundering not really because of supply but because it's fungible and it fits into the banking system so well.

[valery1]

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[witcher_sense]

You have much to learn about the real world haha. Banks are the biggest crooks and big organizations too, they claim to be transparent and do their audits every year with big companies but still hide a lot of dirty money in the books.

Dollars are used for laundering not really because of supply but because it's fungible and it fits into the banking system so well.

Your statement is not the opposite of what I said, most of money laundering cases are occurring within traditional channels. This situation is not going to change in foreseeable future. However, I disagree with your claim that cash is more fungible than bitcoin. Both physical cash and bitcoin are fungible, otherwise they wouldn't be considered money whatsoever. Fungibility of bitcoin is more natural than that of cash, because it is guaranteed by immutable code. It is rarely used in money laundering not because of non-fungibility, but because of higher traceability and immutability. Money launderers and criminals don't want their illicit transactions to be written on blockchain. Instead, they strive to leave as little evidence as possible. Banks allow for that, bitcoin doesn't.

[abhiseshakana]

Many people use crypto to launder money, this is true. But why does no one pay attention to money laundering through other currencies?

The reason is simple because this forum is about cryptocurrency so the concern of discussion is money laundering using cryptocurrency, secondly because cryptocurrency has become a trend lately so that it received more attention and the last, money laundering with other currencies has often been detected by law enforcement agencies, but it is not explained in technical detail for the purpose of investigation, so the references of discussion are limited.

You have much to learn about the real world haha. Banks are the biggest crooks and big organizations too, they claim to be transparent and do their audits every year with big companies but still hide a lot of dirty money in the books.

Dollars are used for laundering not really because of supply but because it's fungible and it fits into the banking system so well.

Your statement is not the opposite of what I said, most of money laundering cases are occurring within traditional channels. This situation is not going to change in foreseeable future. However, I disagree with your claim that cash is more fungible than bitcoin. Both physical cash and bitcoin are fungible, otherwise they wouldn't be considered money whatsoever. Fungibility of bitcoin is more natural than that of cash, because it is guaranteed by immutable code. It is rarely used in money laundering not because of non-fungibility, but because of higher traceability and immutability. Money launderers and criminals don't want their illicit transactions to be written on blockchain. Instead, they strive to leave as little evidence as possible. Banks allow for that, bitcoin doesn't.

Every criminal act, which get additional/margin/benefit is automatically acquired is money laundering. In money laundering, the perpetrator usually places the proceeds of crime into the financial system or changes its form, including being stored in a bank, being smuggled into other countries until it is converted into other assets such as gold or property. Then the proceeds from the crime were transferred, distributed and disguised with the aim of hiding their origins so that they would be difficult to trace. The latter is a combination of proceeds of crime that already appear legitimate to be enjoyed directly or invested in legitimate business activities.

Indeed, bitcoin or cryptocurrency can be used as a new tool for money laundering, but the numbers are smaller because not all criminals want to access this method, many prefer conventional methods that are felt and are proven safe. In addition, criminals will definitely hide their crimes and feel ashamed of social sanctions so they tend to be reluctant to seek information. In addition, in the downstream sector, criminals will face KYC when exchanging their money into exchangers so that the potential for asset loss is still very large.

[desticy]

The complexity of money laundering through cryptocurrency is that there is no convenient gateway through which one could anonymously transfer fiat into cryptocurrency, this is the main obstacle.
Therefore, fiat has its own methods of laundering, while cryptocurrencies have their own. Stolen cryptocurrency is very easily laundered through mixers or regular exchanges if the theft was not tracked down.

[plvbob0070]

Still, it happens sometimes. But laundering through us dollars is much more common.

Probably because the use of cash is more common the Bitcoin that's why it has more money laundering issue aside from the reason that cryptocurrency is more complex.

And maybe anti crypto should read this because this is the first argument that they are going to throw at you when you have a good discussions/debates with them. At least in my case, this is their main argument when I got the chance to talk to people here about crypto, specially bitcoin.

I agree with the op that we can use this as an argument but I think the reason why others think that cryptocurrency is more prone to money laundering is because of misconception. They probably often see news about money laundering that involves crypto that's why they think that it's always cryptocurrency though it's not.

[n0ne]

What's been said in the opening post is the truth about money laundering. According to several data it is clear that usage of USD on money laundering is much more higher than that of the usage of cryptocurrencies on money laundering. The same is with the illegal activities and drug market.

Governments how the control over the Fiat. But they weren't able to keep track of the money flow on illegal needs and other laundering related activities. To be on the safe side, government always indicate cryptocurrency as the root cause for all sort of illegal activities and money laundering.

Most of the time with the support of banking network money laundering is done with ease. There are few banks that are particularly mentioned as hawala banks.

[pawanjain]

That's quite appropriate because cash cannot be easily tracked and though it is a risky job to launder money through cash, once done there's no tracing back to it unlike cryptocurrencies where everything can be traced back to you.Though there are alternate methods to use so that the tracing becomes very difficult it still proves that the traditional method can launder money easily.
This might be true because money launderers can use fiat money anywhere they want but there are only a limited options available if you hold large amount of crypto.
It will take a while before we can withdraw a huge amount from crypto to fiat since banks keep tracking large amounts.