Money Laundering "Not Possible" with Bitcoin?

[commandrix]

Or at least "not possible" at the crazy-shit levels that Liberty Reserve handled. Though to be honest, if I was into money laundering, I probably wouldn't be using Bitcoin anyhow. http://www.newsbtc.com/2016/02/01/liberty-reserve-level-of-money-laundering-is-not-possible-with-bitcoin/

[achow101]

I'm not so sure about that. Although Bitcoin is not anonymous, it is still pseudonymous. If you are looking at transactions, you don't know who exactly is behind an address and where those Bitcoins in that address came from. You don't know whether the money is from fraud or from legitimate business. And with mixing services and through other methods of anonymization like CoinJoin, it can make tracing Bitcoin extremely difficulty such that it is impossible to know who actually committed a crime and used Bitcoin to launder the money.

[cjmoles]

I'm not so sure about that. Although Bitcoin is not anonymous, it is still pseudonymous. If you are looking at transactions, you don't know who exactly is behind an address and where those Bitcoins in that address came from. You don't know whether the money is from fraud or from legitimate business. And with mixing services and through other methods of anonymization like CoinJoin, it can make tracing Bitcoin extremely difficulty such that it is impossible to know who actually committed a crime and used Bitcoin to launder the money.

True.  However, when it is time to convert from bitcoin back to fiat, problems will once again arise. It's at that point where the person cashing the coin would need to show the legitimacy of their income. If suddenly I were cashing out +10K USD, then alarms would be triggered and I would have to show where that income came from when asked.

[mtnsaa]

Yes and I also feel that you could make an infinite loop and multiaddresses to fool an investigation or at least obfuscate it. If someone wants to launder money with Bitcoin I feel it's very easy to do even if the transactions are exposed, remember that to gather the evidence to prove that you hold that wallet would be a problem in the first place.

[calkob]

yeah its the point of entry and exit from bitcoin that would be the problem for money launders.

[jerowacik]

it could happen. even more easily than by other means. because bitcoin is anonymouse and very easy to carry out financial transactions with bitcoin.

[silvaedium]

Of course it's not possible. It's easier to launder money with cash than it is with Bitcoin. With Bitcoin every single transaction is tracked and logged and stored forever. That's not the case with cash.

[iluvbitcoins]

Of course it's not possible. It's easier to launder money with cash than it is with Bitcoin. With Bitcoin every single transaction is tracked and logged and stored forever. That's not the case with cash.

,

That's fucking deep 

[countryfree]

Money laundering is possible with any currency, electronic or fiat. A public ledger can even be useful for money laundering. It's a perfect proof that a transaction was real. What's not in the ledger though, is the proof that some service was done, or that some goods were exchanged. The blockchain is a great tool for creative accounting...

Gosh, I could sell methods to launder money with BTC!

[owm123]

it could happen. even more easily than by other means. because bitcoin is anonymouse and very easy to carry out financial transactions with bitcoin.

Bitcoin is not anonymous. Even UK treasury in its report even indicated that crypto currencies pose low risk for them regarding money laundering.

http://www.coindesk.com/uk-treasury-digital-currencies-low-money-laundering-risk/

[BTCBinary]

Even if bitcoin isn't completely anonymous it stills gives you a certain maneuberability that enables you to launder money. But there are a lot of ways to do that without it as well.

[BeetcoinScummer]

it could happen. even more easily than by other means. because bitcoin is anonymouse and very easy to carry out financial transactions with bitcoin.

Bitcoin is not anonymous. Even UK treasury in its report even indicated that crypto currencies pose low risk for them regarding money laundering.

http://www.coindesk.com/uk-treasury-digital-currencies-low-money-laundering-risk/

My email address is not me.
My IP addresses are not mine.
My wallet does not run on my computer and not even in my country.

So tell me, how will you know who I am?

[silvaedium]

it could happen. even more easily than by other means. because bitcoin is anonymouse and very easy to carry out financial transactions with bitcoin.

Bitcoin is not anonymous. Even UK treasury in its report even indicated that crypto currencies pose low risk for them regarding money laundering.

http://www.coindesk.com/uk-treasury-digital-currencies-low-money-laundering-risk/

My email address is not me.
My IP addresses are not mine.
My wallet does not run on my computer and not even in my country.

So tell me, how will you know who I am?

You have to get your money in and out somehow. Those are the places where AML/KYC regulation takes place. Not only that but the trail can be tracked back the entire way.

[owm123]

it could happen. even more easily than by other means. because bitcoin is anonymouse and very easy to carry out financial transactions with bitcoin.

Bitcoin is not anonymous. Even UK treasury in its report even indicated that crypto currencies pose low risk for them regarding money laundering.

http://www.coindesk.com/uk-treasury-digital-currencies-low-money-laundering-risk/

My email address is not me.
My IP addresses are not mine.
My wallet does not run on my computer and not even in my country.

So tell me, how will you know who I am?

Its not about me knowing who you are. But do you really think that law enforcement, spy agencies, would not be able ever to find who you are and what bitcoin are your if they really wanted? If you really believe in that, then good luck.  Hope you will have more luck than those from the silk road that had to learn the hard way, they they are not invisible.

[Dabs]

That's easy: Buy bitcoin in cash. Sell bitcoin for cash. From people who probably won't keep a record of the transaction. (You could always use a straw man; that's how the real "bad" guys do it.)

I just buy from exchanges using unverified accounts. Much easier that way. After that, it bounces a few times to a bunch of different addresses, then it just stops moving (at that point, it has already been traded to something else, or mixed or whatever).

Cashing out, well, I've never had to exchange more than a thousand coins, so I don't know how easy or hard it is to do larger amounts if needed.

[koshgel]

Yes and I also feel that you could make an infinite loop and multiaddresses to fool an investigation or at least obfuscate it. If someone wants to launder money with Bitcoin I feel it's very easy to do even if the transactions are exposed, remember that to gather the evidence to prove that you hold that wallet would be a problem in the first place.

That still doesn't make it anonymous though. Won't be an infinite loop. Just a lot of manpower to go through all the addresses.

[wafersticks09]

It is possible underground sites is using bitcoin in every transaction they are doing. There are mixers so theres no worry.

[owm123]

It is possible underground sites is using bitcoin in every transaction they are doing. There are mixers so theres no worry.

What's stopping the underground sites or mixers just running with bunch of your bitcoins, or just announcing " we got hacked, all bitcoin gone"? If you like trusting third parties with serious bitcoin transactions, then I hope you know what you are doing.

[puckmany]

Nothing, but what is stopping your bank to declare bankrupt??

[kevin go]

I dont think so..bitcoin is anonymous.so i think it will be easier for them who wanted money laundry..isnt is like that?correct me if im wrong...