Money laundering via BTC

[bitkilo]

Money laundering via BTC is more or less irrelevent, as far a I know.

The thing about money laundering is, people already do it in large sums with paypal and debit cards.

One common technique is for money launderers to open a smart phone app store with an app that doesn't do anything.

They might open an android app store with an app that calculates farenheit to celsius temperatures.

Then they buy 1,000,000 of those iphone apps using paypal or debit cards to launder their cash.

No bitcoin required.

You may want to rethink your idea before going down that road, do you know how time consuming it would be to purchase 1,000,000 apps while making it look like legitimate sales.
Unless you are going to charge $10k for 1 app download it's going to take ages to launder a decent some of money.

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[ipanks]

i imagine i have much of money in my account, i called my friends and buy bitcoin, transfer the money, get the bitcoin in my wallet, do it more and more until the money in my account its looks normal like the other people accounts. i think maybe the process is like that, but i wonder, from the money i send into my friends, i think the government will be suspicious because i made big transferred to another account, and maybe i will be investigate.

[diegz]

i imagine i have much of money in my account, i called my friends and buy bitcoin, transfer the money, get the bitcoin in my wallet, do it more and more until the money in my account its looks normal like the other people accounts. i think maybe the process is like that, but i wonder, from the money i send into my friends, i think the government will be suspicious because i made big transferred to another account, and maybe i will be investigate.

Usually that is the point where money laundering is being found, when you transfer it from your account. It doesn't matter if you do it in many small amount or you do it in one bulk transfer. You'll only be investigated if you have an unexplained wealth. But if the money is yours and you obtained it in legal way and being taxed then why would government follow you.

[canhchuacaro1]

i imagine i have much of money in my account, i called my friends and buy bitcoin, transfer the money, get the bitcoin in my wallet, do it more and more until the money in my account its looks normal like the other people accounts. i think maybe the process is like that, but i wonder, from the money i send into my friends, i think the government will be suspicious because i made big transferred to another account, and maybe i will be investigate.

Usually that is the point where money laundering is being found, when you transfer it from your account. It doesn't matter if you do it in many small amount or you do it in one bulk transfer. You'll only be investigated if you have an unexplained wealth. But if the money is yours and you obtained it in legal way and being taxed then why would government follow you.

I do not encourage money laundering by Bitcoin
it really is illegal, you can be penalized severely
Bitcoin is both an opportunity but also a disaster if it is not used properly

[bitloud]

Yes, No issue about income taxes. We can escape from income taxes. But problem is bitcoin price is not stable. If its value reduced, That will be a huge loss.

[Qunenin]

i imagine i have much of money in my account, i called my friends and buy bitcoin, transfer the money, get the bitcoin in my wallet, do it more and more until the money in my account its looks normal like the other people accounts. i think maybe the process is like that, but i wonder, from the money i send into my friends, i think the government will be suspicious because i made big transferred to another account, and maybe i will be investigate.

Usually that is the point where money laundering is being found, when you transfer it from your account. It doesn't matter if you do it in many small amount or you do it in one bulk transfer. You'll only be investigated if you have an unexplained wealth. But if the money is yours and you obtained it in legal way and being taxed then why would government follow you.

All this is true in case of Fiat, that government charges taxes on your money and trace in case of big transactions. In case of Bitcoin Wallet to wallet transaction, there is no check and balance. The money can easily be moved out of country once converted into bitcoins.

[chixka000]

Obviously, this is rampant especially because people are doing it online and it is really hard to let them pay for this. If you are using an exchanger site then you are banned I must say that you are already doing the money laundering thingy

[Herbert2020]

Yes, No issue about income taxes. We can escape from income taxes. But problem is bitcoin price is not stable. If its value reduced, That will be a huge loss.

you can not escape from income tax using bitcoin, the IRS will come hunting you down if you do so. you are earning your income from somewhere and you have to report it, using bitcoin can not hide that.

[diegz]

Obviously, this is rampant especially because people are doing it online and it is really hard to let them pay for this. If you are using an exchanger site then you are banned I must say that you are already doing the money laundering thingy

There is a difference between money laundering by using exchange and depositing bitcoin on an exchange from jobs. At this days where rich people who wants to money launder and use bitcoin exchange I think won't succeed easily. Exchanges are now clever and probably abiding the law. They are now asking for identification and most probably they might start to ask on what is your source to fund your account or wallet.

[carlisle1]

i imagine i have much of money in my account, i called my friends and buy bitcoin, transfer the money, get the bitcoin in my wallet, do it more and more until the money in my account its looks normal like the other people accounts. i think maybe the process is like that, but i wonder, from the money i send into my friends, i think the government will be suspicious because i made big transferred to another account, and maybe i will be investigate.

Usually that is the point where money laundering is being found, when you transfer it from your account. It doesn't matter if you do it in many small amount or you do it in one bulk transfer. You'll only be investigated if you have an unexplained wealth. But if the money is yours and you obtained it in legal way and being taxed then why would government follow you.

All this is true in case of Fiat, that government charges taxes on your money and trace in case of big transactions. In case of Bitcoin Wallet to wallet transaction, there is no check and balance. The money can easily be moved out of country once converted into bitcoins.

that's right mate if doing it from wallet to wallet i think there's no problem transferring it and just by doing how much the amount your government allowed you to exchange it into fiat will be safe for you to do the laundering the only matters is the fluctuations since its keep moving up and down so its hard to assess if same value can be done in your transactions.

[Hydrogen]

You may want to rethink your idea before going down that road, do you know how time consuming it would be to purchase 1,000,000 apps while making it look like legitimate sales.
Unless you are going to charge $10k for 1 app download it's going to take ages to launder a decent some of money.

Its not my idea.  

There are documented cases of people using this method to launder money.

I doubt most money launderers even know what bitcoin is.

[deisik]

Yes, No issue about income taxes. We can escape from income taxes. But problem is bitcoin price is not stable. If its value reduced, That will be a huge loss.

you can not escape from income tax using bitcoin, the IRS will come hunting you down if you do so. you are earning your income from somewhere and you have to report it, using bitcoin can not hide that.

It is not always the case

I don't know about the IRS requirements, and what you say may very well be the case in the US where you should report any income even if it is not taxed (e.g. due to tax exemptions), but, for example, in Russia, you don't need to report your income if it is not taxed. There may in fact be a law (likely a provision in the Tax Code of Russia) according to which you are still obliged to declare this kind of income (i.e. even if it is exempted from taxation), but no one does it really since if you don't have to pay a tax, you are basically free from tax claims as well as declaring anything. This is the "unofficial convention" existing in the society

[marketone]

i imagine i have much of money in my account, i called my friends and buy bitcoin, transfer the money, get the bitcoin in my wallet, do it more and more until the money in my account its looks normal like the other people accounts. i think maybe the process is like that, but i wonder, from the money i send into my friends, i think the government will be suspicious because i made big transferred to another account, and maybe i will be investigate.

If you do more transaction definitely you will caught by government because they will find easily who shifting money into digital currency that is in the form bitcoin, one day they will ask you for tax on it, if you pay taxes on time they will not ask any thing. But without paying tax and transacting more money definitely they will caught you.

[deisik]

You may want to rethink your idea before going down that road, do you know how time consuming it would be to purchase 1,000,000 apps while making it look like legitimate sales.
Unless you are going to charge $10k for 1 app download it's going to take ages to launder a decent some of money.

Its not my idea. 

There are documented cases of people using this method to launder money

And who documented these cases?

I guess they have been documented exactly by some anti-money laundering agency after they caught someone actually trying out that. Really, how would you know otherwise? If you read about some scheme for money laundering and which is not an outright invention of someone's runaway imagination at that, you can be pretty sure that it had been tried and it didn't work out. Working schemes for laundering money are kept top secret, else they are no longer working since anti-money laundering agencies would be quite familiar with them by that time

[chixka000]

Obviously, this is rampant especially because people are doing it online and it is really hard to let them pay for this. If you are using an exchanger site then you are banned I must say that you are already doing the money laundering thingy

There is a difference between money laundering by using exchange and depositing bitcoin on an exchange from jobs. At this days where rich people who wants to money launder and use bitcoin exchange I think won't succeed easily. Exchanges are now clever and probably abiding the law. They are now asking for identification and most probably they might start to ask on what is your source to fund your account or wallet.

That is what im actually saying tho what you have said that if you deposit btc on a certain exchanger from your job that would still varies to what certain job you are having and would not make a guarantee so you should have to be very careful

[n0ne]

Money laundering is done by more users through bitcoin. At the same it is possible through a group of members and not with a single individual as someone has described. Nigerian MMM which has been a ponzi has once again getting active with the name of bitcoin. Now Nigeria government has made regulations with banks to avoid virtual currency transactions to avoid laundering services.

[hajimasan]

It's not money laundering via bitcoin is the way how you get trapped in scammers hand. You should analyze and investigate the company or whatever where you are investing money. I was scammed mny times but now I know the scammers and such companies.

[megynacuna]

It's possible to escape governments income tax and engage money laundering with bitcoins but I would advice against it as that increases governments around the world's hesitance to accept/approve it in their respective jurisdictions thereby restricting Bitcoin usage to the underground/black markets. We all owe it a duty to push for the world wide legalization of bitcoins and such negative ways of using Bitcoin doesn't auger well for all of us.

[morantis]

It's not money laundering via bitcoin is the way how you get trapped in scammers hand. You should analyze and investigate the company or whatever where you are investing money. I was scammed mny times but now I know the scammers and such companies.

yes, it is greed and fear that cause the most illogical choices.  and it is these two things that most scammers use to get people.  

1. If it sounds too good to be true, it likely is.  
      If I tell you I can magically make $1 into $2, all I need is your $1, why haven't I simply done this repeatedly to my own money.

2. Scammers appear quickly and disappear just as quick. Technically I trust no one, but I would rather trust a forum member here that has a history of trying to generally help people versus someone that signed up yesterday.  

3. Many people distrust others in a way that shows their own weaknesses. What I mean is something like a spouse that is always accusing the other person of cheating.  These things are in their head because they cannot be trusted.  Many scammers may take undo care to ensure that you are keeping your end of the deal because they cannot be trusted.

4. Profile your business dealings!  Desperate  people beg, crooked people change gears and/or back shift and people that are trying to help probably back shift and then leave an open communication line.
      Someone that is in desperate need of money will offer you a deal and when you decline they will sweeten the pot, and finally beg you to "buy" or "trade".  They need the money and the biggest trust issue with them is the fact that they believe they will come through for you, but may fail, not due to intentional theft.  Crooked scammers keep the deal moving, no matter what. If they lose steam, they lose the mark.  They want you slightly confused, convinced you are not confused and they do not want you seeking advice or catching your breath.  The desperate person has only one deal to offer, but the scammer may produce alternatives and changes to get you to bite.  The scammers last move is to cease talking and drop the ball in your court, stating that their time is very limited.  Someone that is interested in making a deal with honest intent, or trying to honestly help will try for a bit and then leave it to you. The difference in the end from the scammer is that they will leave the future open for you, letting you know that they are there anytime you change your mind, but that they cannot waste more time trying to convince you.

[TastyChillySauce00]

It's possible to escape governments income tax and engage money laundering with bitcoins but I would advice against it as that increases governments around the world's hesitance to accept/approve it in their respective jurisdictions thereby restricting Bitcoin usage to the underground/black markets. We all owe it a duty to push for the world wide legalization of bitcoins and such negative ways of using Bitcoin doesn't auger well for all of us.

That's right and even if you can escape those you will still eventually getting caught and it just matters about the time.

i imagine i have much of money in my account, i called my friends and buy bitcoin, transfer the money, get the bitcoin in my wallet, do it more and more until the money in my account its looks normal like the other people accounts. i think maybe the process is like that, but i wonder, from the money i send into my friends, i think the government will be suspicious because i made big transferred to another account, and maybe i will be investigate.

Government will only see your activities through bank transfer, if there's some suspicious transaction going on then they will take a look on it, but when you're using bitcoin and you bought the bitcoin from some company which is not based on your country you seem to be fine