Money from bank hacks rarely gets laundered through cryptocurrencies

[hulla]

It good swift took their time to study the cases of money laundering happened through Fiat and crypto currency because people usually make a big deal when crypto scam and thats was the major weapon the institutions and some government usually used against crypto whereas the fiat money laundering is even worse than crypto.
@OP, thank you so much for this share.

[imstillthebest]

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.

its laundering not hacking  . crypto may be hard to launder as they say but hacking is still prominent here  .

however hacking can also relate or connect to laundering and i think its easy to launder here because of the anonimity that crypto provide . they can use mixers if they arent sure of their privacy but non crypto transactions are way to centralizefd and easily trackable . they didnt think of that ?

[akram143]

Of course hacked fiats get laundered into cryptos rarely because it is not possible to do in huge volume, most of the money gets laundered in p2p trading platforms that is why hackers targeting cryptos itself to hack so they can hide the traces and can convert into other chains finally they can cash it out into fiat.

[0nline]

BTCBTCBTC 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 BTCBTCBTCBTC

[20kevin20]

its laundering not hacking  . crypto may be hard to launder as they say but hacking is still prominent here  .

Of course. This is the digital world. Hacking is prominent here the same way robberies are prominent in the real one. Whatever is the easiest or most convenient goes first.

however hacking can also relate or connect to laundering and i think its easy to launder here because of the anonimity that crypto provide . they can use mixers if they arent sure of their privacy but non crypto transactions are way to centralizefd and easily trackable . they didnt think of that ?

Actually, you're wrong about two things:

1. Cryptocurrencies (I'm talking about cryptocurrencies that are not designed to provide anonymity unlike Monero) are not anonymous. They're pseudonymous - it's something I have always got confused until not too long ago. Anonymity = hidden; pseudonymity = something similar to having a nickname. On this forum, you're pseudonymous.

2. Hiding non-crypto transactions can be way easier than hiding a Bitcoin tx. If we decided to meet at some place outside the city and left our phones and any other electronic device (including cars that are traceable) at home (or placed them in some Faraday cages if possible), without any surveillance cameras or suspecting people around we could discuss about literally anything and complete any transaction we'd wish without leaving much of a trace behind. If I was to trace all the times your friends/family handed you some bucks (or you did), do you think I'd be able to? I doubt it.

[Yatsan]

Well actually that was the reality about the issues being thrown against cryptocurrency that it promotes or could tolerate money laundering activities since it is on a digital manner which is prone to hacks. But on the actual realistic scenario it is on the fiat where most money laundering cases are happening. In fact, there are lots of recorded cases related to fiat money laundering activities from illegal activities that uses traditional method compared to the once that are related into cryptocurrency money laundering.

This study by SWIFT must be known by the people most specially by the government to clear things out on such allegations that using crypto currency could lead to money laundering activities to sprout when at the first place there are more activities like that happening on fiat. This would lessen the fear of people to get in touch with crypto currency for the reason that anti crypto are always throwing the issue of money laundering could be related to crypto usage.

[Anna138]

Well actually that was the reality about the issues being thrown against cryptocurrency that it promotes or could tolerate money laundering activities since it is on a digital manner which is prone to hacks. But on the actual realistic scenario it is on the fiat where most money laundering cases are happening. In fact, there are lots of recorded cases related to fiat money laundering activities from illegal activities that uses traditional method compared to the once that are related into cryptocurrency money laundering.

This study by SWIFT must be known by the people most specially by the government to clear things out on such allegations that using crypto currency could lead to money laundering activities to sprout when at the first place there are more activities like that happening on fiat. This would lessen the fear of people to get in touch with crypto currency for the reason that anti crypto are always throwing the issue of money laundering could be related to crypto usage.

It seems to me that there is no real money laundering in cryptocurrencies. Too transparent transactions and large movements cause unnecessary attention. It is more likely that money in cryptocurrency is divided into small amounts, withdrawn in different places in Fiat and then laundered while in Fiat. This is the most likely scenario. In the cryptocurrency itself, no one will launder, as crazy commissions for withdrawal and it is simply unprofitable.

[maxreish]

With compare of bank money laundering, of course they are more familiar on this rather than in cryptocurrency.
 
 

BTCBTCBTC 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 BTCBTCBTCBTC
 

 I kind of agree but hackers not only can hack personal details, they can also inject malwares, etc. However, criminals finds it easy to money launder through banks. Although we can't deny the fact that  digital currencies gives us a better access in financial sustem but governments may used advanced tools to detect this kind of transactions being held by money lauderers.

[Leviathan.007]

Money laundry sometimes is really happening in cryptocurrencies but, as far as I know the governments can track the cryptocurrency transactions in some special and important cases. However, people will usually use some methods such as mixers to keep the money safe from getting tracked. money laundry is one dark side of the cryptocurrency but in the other hand, the transparency side of it is much more shining than fiat currencies.

[Bitcoinislife09]

Digital money or digital currency is vulnerable when it comes money laundering could be because of security and it doesn't have a physical form. In my opinion, the banking system is already used in a lot of countries that are supported by the government that is I think why a lot of people are using fiat money and banks compared to the cryptocurrency that's a lot of countries dod not support at this time. For me, we can't deny that cryptocurrency is still vulnerable at this point because it is not supported yet but the authorities and its difficult to track illegal transactions.

[Lizzie_Girl]

Thinking that people who hack bank accounts will use crypto to "launder" the stolen funds is absolutely ridiculous. What did they do before crypto? They can still do that exact same thing they have always done. Crypto just allows you to buy and trade something else that has value and anything that has value can be used to launder money. People who steal money don't exactly spend it directly.

[wack slacker]

The amount of money hacked is huge, and it is difficult for them to launder money through cryptocurrencies quickly because blockchain technology is traceable and market liquidity is very small.
Above all criminals always have clues to conduct money laundering and they will choose the old route.

[DrG]

The entirety of the entire crypto market cap is less than the value of the fake accounts that Wells Fargo opened up without consent from its customer base in just CA alone. Kamala gave them a small slap on the hand a stern finger wag, I'm sure no bank will do anything unethical like that ever again. 

But something about some guy buying marijuana with the bitcoins...

[Wawa2013]

Thank you for sharing the article that proves that money laundering happens a lot through fiat, and the amount is still very rare
for money laundering through cryptocurrency. So the accusations of Bitcoin haters have been answered, it turns out that fiat is
more widely used for money laundering than cryptocurrency. But I believe Bitcoin haters are always looking for other ways to bring
down cryptocurrency.

[shield132]

It doesn't need a show of any evidence or proofs that cryptocurrencies are rarely used for money laundering because we all know that Banks shine there. We have offshore and other things that give us the possibility to do illegal things legally and governments give us that possibility but that's not available for everyone, more likely for rich and elite people are the ones who launder money. See how much money was laundered via Deutsche Bank and by others. It's all just a blaff. Elite people launder money via banks. Cryptocurrencies are just available for everyone and these "elite" people try to ruin the reputation of cryptocurrencies by saying that they are bad, scam, etc. It's like imagine when billionaire was telling to a poor guy during pandemic to stay at home for months.

Russians have two great verbs:
1. Laws are written for stupids!
2. Laws are written to violate!

[rollingdice]

People hostility towards crypto don't know and don't want to understand that cryptocurrencies can be used for something except money laundering and paying for drugs and weapons. It's hard to make them change their mind.

[Sanitough]

People hostility towards crypto don't know and don't want to understand that cryptocurrencies can be used for something except money laundering and paying for drugs and weapons. It's hard to make them change their mind.

That has slowly change, maybe in the early stage people are thinking like that but as the adoption increases, more and more people are already knowledgeable about bitcoin and understands its risk. Do you think government would regulate it if it has not bigger positive impact to people, no, they would just ban it and will declare illegal using it, what I'm seeing now is already an improvement, i hope people sees the same way.

[DrG]

People hostility towards crypto don't know and don't want to understand that cryptocurrencies can be used for something except money laundering and paying for drugs and weapons. It's hard to make them change their mind.

That has slowly change, maybe in the early stage people are thinking like that but as the adoption increases, more and more people are already knowledgeable about bitcoin and understands its risk. Do you think government would regulate it if it has not bigger positive impact to people, no, they would just ban it and will declare illegal using it, what I'm seeing now is already an improvement, i hope people sees the same way.

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.

[btc78]

People hostility towards crypto don't know and don't want to understand that cryptocurrencies can be used for something except money laundering and paying for drugs and weapons. It's hard to make them change their mind.

Only those newbies has this thinking because this has been an issue for many years and like everything says,even before Bitcoin comes there are already issues like this that involves Fiat and other Online payments so whats the matter if bitcoin or cryptocurrencies are being on this usage ?when evern without crypto this criminals and syndicates will still exist and continue their illegal activities so better think about those before throwing words in this community.

[witcher_sense]

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.