Money from bank hacks rarely gets laundered through cryptocurrencies

[btc_angela]

We already knew that laundering cryptocurrencies is much harder than everyone thinks so hackers still preferred the old method and this study by SWIFT proved what we have been suspecting all along.

SWIFT: "Identified cases of laundering through cryptocurrencies remain relatively small compared to the volumes of cash laundered through traditional methods."

Despite being considered a cybercrime haven, cryptocurrencies play a very small role in laundering funds obtained from bank hacks; the SWIFT financial organization said in a report last week.

"Identified cases of laundering through cryptocurrencies remain relatively small compared to the volumes of cash laundered through traditional methods," said SWIFT, the organization that runs the SWIFT inter-bank messaging system used by almost all banks across the world to wire funds across borders.

These traditional methods include the use of money mules, front companies, cash businesses, and investments back into other forms of crime, such as drug trade or human trafficking.

https://www.zdnet.com/article/money-from-bank-hacks-rarely-gets-laundered-through-cryptocurrencies/

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.

[erikoy]

Yes, government can track records of the cryptocurrency userd through banks. Banks had always a record in their system to which authority coulr ask for it if necessary.

However, government will usually trace people that has hold position in the government that has also questionable wealth. This can lead to investigate the wealth of that official but of course it will follow a certain protocol like requesting for a certain investigation that could lead inquiry to bank account statement with the owner knowledge.

But most corrupt government official do not hold money in their bank and they use different names or letting it hold for someone close to them.

[meanwords]

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.

[Darker45]

This is for sure. In terms of money laundering, which must be as old as money itself, fiat is expected to dominate. Transparency is more on the side of crypto than fiat, especially cash, so it must be harder to launder through crypto than through fiat.

Not only from bank hacks but in virtually all cases of money laundering, I bet only a very small portion of it goes to crypto, unless the hackers are crypto fans themselves.

[yazher]

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.

Yeah! this is a solid proof with a solid source to tell them that crypto laundering has just some small case compared to the normal money laundering method. Now since we have this solid proof they can no longer tell us that this thing is one of the problem of cryptocurrencies depends if they really wanted to take this as an evidence cause those haters will just find another reasons for not using cryptocurrency. At the end of the day, Money laundering has not been the case for the crypto but the scam attempt are very popular since many people in the world are newbies about this industry and that one could be fixed if they just spare some times to read and study about the preventative measures regarding the scammers.

[dansus021]

Yes, government can track records of the cryptocurrency userd through banks. Banks had always a record in their system to which authority coulr ask for it if necessary.

However, government will usually trace people that has hold position in the government that has also questionable wealth. This can lead to investigate the wealth of that official but of course it will follow a certain protocol like requesting for a certain investigation that could lead inquiry to bank account statement with the owner knowledge.

But most corrupt government official do not hold money in their bank and they use different names or letting it hold for someone close to them.

its total true no such an fool that laundry his money to his own bank

but i think there is some method can use for laundry and stay clean first of all mixing their coin and try to spread to exchange that doesn't require KYC and then withdrdaw it using local or OTC and combine with old fashion money laundry

[Yaunfitda]

Not only from bank hacks but in virtually all cases of money laundering, I bet only a very small portion of it goes to crypto, unless the hackers are crypto fans themselves.

I'm also under the impression that criminals themselves are not off loading their dirty money to crypto because it's another layer for them to get over with. So it's better to just off their dirty money in their supposedly legal fronts instead of depositing it to exchange wherein there is still a trail if investigators wanted to dig deeper. I still remember one case in our country, wherein the money from bank hacks are being laundered through traditional based casinos.

[davis196]

All the FUDters and anti-crypto preachers must read this and shut up forever.
The best way for a criminal to launder his dirty money is to turn them into cash,not cryptocurrencies.
Usually the main goal of money laundering is to turn the dirty money into cash.Turning them into cryptocurrencies and after that into cash is just another unnecessary layer of the money laundering scheme,which increases the risk for the criminals.
Privacy coins like monero are not a solution,because the criminals will try sell their monero for cash,which isn't that easy.

[pooya87]

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.

wrong, the "bitcoin users" should read these things not those who are spreading the FUD (or as you put it the "anti crypto") because the FUDsters already know this very well and they will continue throwing fake claims including this one around at bitcoiners specifically the newcomers to turn them around to the corrupted systems they own/control.

[boyptc]

They should really read this case study. All the blame for illegal transactions was blamed on crypto but they ignore this kind of fact.

In terms like this, they are quiet.

[rexxarofmoknathal]

https://www.zdnet.com/article/money-from-bank-hacks-rarely-gets-laundered-through-cryptocurrencies/

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.

It really is ironic, and you're not the only one who gets the same dumbed up response that crypto and BTC allow for much easier access to money laundering. In light of this evidence, I'm certain that if this fact was to be thrown in these people's faces that they still would not consider it and keep to their own derived conspiracy.

In any case, it is great that this information is now available, as this argument can be used on people who still have some common sense left.

[Sanitough]

Obviously it's hard to do money laundering on fiat to bitcoin, the first step alone, your transacting party would already know where the money is coming and that could be trace easily. Anything that goes online transferred or pass through a regulated platform can be trace by the authorities as they have all the platforms under them required to cooperate with their request or demand.

Money laundering on cash will usually pass through a casino but then authorities are still smart, they can trace it.

Just like the The Bangladesh Bank Heist, the money were trace that the hacker was laundered in a casino and cash were returned.
This was very famous in our country last 2018 IIRC.

about the hacked : https://www.aljazeera.com/programmes/101east/2018/05/hacked-bangladesh-bank-heist-180523070038069.html

[NVZNtoken]

Cryptocurrency being used for money laundering seem to be largely a myth perpetrated by crypto sceptics. Especially when it comes to Bitcoin, a public ledger isn't the best way to hide and obfuscate illegal activity.

[buwaytress]

Yeah, I've a partner working in traditional finance and we get into occassional talks whenever one of these "Bitcoin scandals" pop up -- as they do every now and then.

Then I wait for the inevitable bank scandal to pop up (the latest I recall was Danske Bank in Estonia) and then point out the massive amounts of money laundered... by the very same culprits in suits.

It's all good fun in the end, but I think anyone seriously working in AML sectors know exactly who the bad guys are. And the bad guys are beginning to understand crypto is really, really not the way to go if you want to wash dirty money.

[Wexnident]

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'd give up on that if I were you. Just continue loving and adopting Bitcoin, or doing whatever, there's almost no sense in arguing with FUDsters and the like. If you were to introduce BTC to a newbie, then maybe use the story, but for haters? Nah. We all just have to accept the fact that when there are lovers of something, there'd also be someone who'd just step up and hate it straight down without an ounce of research done about it.

Has anyone actually done research on this topic and can prove it?

If its stats, then the link provided by op should be more than enough. Research about this would basically concentrate on past events anyway.

[hd49728]

Few things to trace:

- Fiat movements.
- Crypto movements.
- IP addresses.
- KYCs.

I am sure that we reduce our privacy when accept KYC and finish KYC process so hackers do as well. P2P marketplaces or decentralized exchanges *bisq) can be places where hackers try to do their money laundering. Police and government can catch hackers and money laundering from fiat movements and KYC database.

Why KYC is extremely dangerous – and useless

[bunglor]

This is pretty good news to crypto lovers as it is giving us an advantage as it indicates that crypto can't be laundered easily base on SWIFT report. I don't have a deep knowledge on both banks and crypto works with regards in fighting the hackers but I am a little bit happy knowing that crypto can't be hack easily.

[avikz]

The data from swift makes sense! But beware, when you are comparing fiat related frauds to crypto related frauds. Cryptocurrency is just 11 years old and it has only started gaining momentum few years back. So you are comparing an ice cube to an iceberg!

Fiat currency is used by all 195 sovereign countries while bitcoin is used by an worldwide community which is still super tiny! So while the data makes sense because of fiat's userbase, the comparison doesn't make sense!

It's definitely a point you can raise while arguing with a anti crypto people but it's just doesn't make sense looking at the sheer volume difference due to the different userbase!

[dothebeats]

Given the existing laws and regulations concerning bank secrecy, it is still a lot easier to launder money through known banking networks than doing it on cryptocurrencies. Imagine you already have cold, hard cash and still converting it to crypto to ‘avoid’ watchful eyes. You have to remember that blockchains are publicly-open for everyone, unless you turn into some privacy coins but even then, you’ll have to convert back to bitcoin or cash, then use an exchange which you probably have KYC on.

Trying to do the long game with crypto is just stupid in money laundering with a few extra steps. Even SWIFT knows it themselves even if they can just defend their networks and accuse cryptos as the greater evil.

[BitcoinPanther]

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.

Compared to adoption, with cryptocurrency users being on the minority, it is obvious that most money laundered is done through fiat.  Those who argued that cryptocurrency is more widely used than fiat itself does not know anything about cryptocurrency and believe highly sensationalized news about cryptocurrency as way of laundering money without using their logic.  I just ignore stubborn people who thinks cryptocurrency is the main culprit for money launderin and I highly agree with what dothebeats stated.