If Bitcoin is better, why do criminals use it for money laundering?

[Juicyhome]

I am not against Bitcoin, i just need honest answers that would convince me more about Bitcoin because I'm newly into it. Some news I've seen about Bitcoin is either scam related, like people getting scammed through it on telegram, drug cartels using it to launder money, and criminals stealing from shop owners who use Bitcoin, if it is that better than fiat, why is it possible for criminals to use it or clean their dirty money with it?

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

Before bitcoin there was money laundering and criminality,  bitcoin is just another form of money sns can be used for good and abd too,  bitcoin was not designed to protect or prevent criminality in the society,  I was designed to help people not to be trapped in  printed fiat where government print and share among themselves and leave nothing for the people. 

Biting can't stop criminality that's not it aim, fiat is still use to Lauder money till date nothing can stop criminality in the society,  is only government that has the capacity to stop criminality by making an anti laundering money policy,  don't blame bitcoin for any crime.

[knowngunman]

I am not against Bitcoin, i just need honest answers that would convince me more about Bitcoin because I'm newly into it. Some news I've seen about Bitcoin is either scam related, like people getting scammed through it on telegram, drug cartels using it to launder money, and criminals stealing from shop owners who use Bitcoin, if it is that better than fiat, why is it possible for criminals to use it or clean their dirty money with it?

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

And now you're blaming BTC for being wrongly used by criminals? Would you blame fiat for being used by criminal as well or the criminal themselves? As far as I know, criminal prefer and use cash more than anything else for their criminal activities because it can not be traced.

Bitcoin is not anonymous, it's pseudonymous because every transaction is visible on the blockchain forever. Chainalysis can trace transactions if it looks suspicious unless you'll never convert to cash using CEX but cash can not be traced once it leaves your hand.

Either cash or bitcoin, people use it for whatever they can. We can not judge them because they are only a tool but we can judge the people rather for using it for bad reasons.

[abaeze]

I think the OP doesn't know or has forgotten when Bitcoin was born and before that these negative or criminal acts didn't happen before. If it did, then you must understand why hateful and slanderous agendas are being propagated. Honestly, these negative stories don't bother anyone anymore. So one thing needs to be made clear, Bitcoin itself does not choose criminals or honest people. It is a neutral technology. Just like the internet, mobile phones or cash. They can be used for good as well as bad. But that doesn't mean the technology itself is guilty. There are many good aspects of Bitcoin on the internet, you can google them.

[ImGenius]

I am not against Bitcoin, i just need honest answers that would convince me more about Bitcoin because I'm newly into it. Some news I've seen about Bitcoin is either scam related, like people getting scammed through it on telegram, drug cartels using it to launder money, and criminals stealing from shop owners who use Bitcoin, if it is that better than fiat, why is it possible for criminals to use it or clean their dirty money with it?

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

Why does everyone consider Bitcoin as a bad thing every good thing has its bad side Bitcoin is never responsible for that. One of the good sides of Bitcoin is that it keeps the identity hidden which is necessary for a scammer. But I still see many scammers using fiat to scam. They may maybe doing it in small so the garment does not take any action on them. But when they want to do something bigger than that the government stops them which is why they use such a system so that no one can catch them. it's like some medicine which is made for good while some people use for addiction, for those people we can't say that medicine is bad do we?

[Ishicryptic]

You misunderstand the context of "better." Bitcoin is better for eliminating middlemen, not better for eliminating criminals.

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

Yes, and there should have been no money laundering stories before Bitcoin was introduced. However, it's important to note that Bitcoin isn't completely anonymous. That's why so many money laundering cases have been uncovered.

Clearly OP missed the reason for Bitcoin creation and is focusing his energy on the negative aspects, he should know that anything that was intended for a good cause that scammers always try to scam people through it but you don't have to cancel what is right because criminals are also using it. For example guns are meant to provide security and scare against oppressors but robbers also use it to scare and kill their victims so you cannot condemn the gun because criminals are also using it.

We should focus on the good of Bitcoin which is why it's adoption is increasing as a hedge against inflation and a store of value instead of focusing on criminals that are using it for fraud. Afterall before Bitcoin was created criminals have been using fiat and other assets to launder their loot, Bitcoin became one of their means so it doesn't take anything away from what it has achieved.

[sokani]

I am not against Bitcoin, i just need honest answers that would convince me more about Bitcoin because I'm newly into it. Some news I've seen about Bitcoin is either scam related, like people getting scammed through it on telegram, drug cartels using it to launder money, and criminals stealing from shop owners who use Bitcoin, if it is that better than fiat, why is it possible for criminals to use it or clean their dirty money with it?

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

Are people not getting scammed every day with fiat? Are people not getting robbed every day with fiat? Are people not doing money laundering every day with fiat? So why look at Bitcoin as if it's the problem? It is not. Bitcoin is just a tool, and it's not the problem. It's the criminals who are using it to scam people and to launder their ill-gotten funds that are the problem.

[Olatundespo]

This is a stupid excuse made by some people to blame Bitcoin. Billions of dollars are being laundered from almost every country and this is being done by people in power. They are looting their own country's money and building mountains of wealth abroad.
Some people cannot tolerate the coexistence of decentralized alternative economies with the traditional economy that is going on in the world. They spread misinformation about Bitcoin, while most of the crimes are being done through fiat currency.

[DiMarxist]

It's crazy how you demonize Bitcoin and yet the fiat money from your country or even the USD has been used to launder money by corrupt folk in your jurisdiction, commit fraud, buy drugs and, finance crime and terrorism since time immemorial. Ever since Bitcoin came into the picture, Government looked for the perfect scapegoat but the amount of money "Laundered" through BTC is far less than that that has been laundered through fiat. So let's cut the crap of saying that BTC is only used for laundering.

Well don't blame the OP, I believe that as a newbie he is still not in tuned with what Bitcoin is all about and may confuse Bitcoin as a bad thing that can be used to commit crime. But the OP has not realized that even the Fiat currency which is traceable using the banks can be used in commiting crimes by criminal minded individuals. The problem is about Bitcoin or even Fiat currency Bitcoin as a good technology is just a tool in the hands of individual. What they do with Bitcoin in their hands is entirely what they decide and Bitcoin should not be blamed or even be seen as a bad technology.

[Hamza2424]

I am not against Bitcoin, i just need honest answers that would convince me more about Bitcoin because I'm newly into it. Some news I've seen about Bitcoin is either scam related, like people getting scammed through it on telegram, drug cartels using it to launder money, and criminals stealing from shop owners who use Bitcoin, if it is that better than fiat, why is it possible for criminals to use it or clean their dirty money with it?

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

How many cases of such hacks have you heard since you started your journey in crypto? How many recovery cases have you heard? I am sure you have heard more cases than fiat because in cryptocurrency especially in BTC the blockchain is crystal clear which makes it hard for criminals to launder money in it. The stats show that fiat is the highest source of laundering money compared to crypto because of the transparent transactions on the blockchain.

Now with stablecoins like USDT, Tether could even freeze them on suspicion basis.

Now I am not denying the fact that scams and hacks are happening, but people who are losing their coins to these hackers are losing because of their own mistakes. They fell for honey traps on Telegram chats. Why would you even believe a random person texting you on Telegram?

[barbara44]

don't blame the OP, I believe that as a newbie he is still not in tuned with what Bitcoin is all about and may confuse Bitcoin as a bad thing that can be used to commit crime. But the OP has not realized that even the Fiat currency which is traceable using the banks can be used in commiting crimes by criminal minded individuals. The problem is about Bitcoin or even Fiat currency Bitcoin as a good technology is just a tool in the hands of individual. What they do with Bitcoin in their hands is entirely what they decide and Bitcoin should not be blamed or even be seen as a bad technology.

This is true, and people who think that money laundering didn't existed before bitcoin makes me laugh. They know that money was laundered before bitcoin, everyone knows it, it is not a news, and that means before bitcoin it was laundered one way or another anyways, and now there are "some" that launder it via bitcoin as well.

Not like most of it is laundered in bitcoin neither by the way, it's still not a good way to launder money, there are easier ways like cash shops that you can start which can launder a lot better. So the idea that bitcoin is used to launder money is stupid, because it was laundered before, and it is not even laundered that much with bitcoin at the moment, hence laundering is only small percentage of problems.

[Orpichukwu]

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

But money which is held in case can't be traced, right? And cash could be used to conduct and finalise all sorts of trade activities without the need to conduct a proper recording. Is that also not a perfect tool to be used for money laundering? Why direct the question to Bitcoin alone? I always believe that those who are fully into crime as a means of making money barely use crypto; they have their ways.

[Sonia_123]

They use it because of the freedom it has and no third party intervention during transactions and free from monitoring of any government agency or individual remember BTC is also like other currency that can be used as they want or whenever needed since it is a digital currency made it more easier, but we cannot say that it is mainly used for fraud that is very wrong of a taught among all the quality things BTC has being doing at least give it some credit.

[X-ray]

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

If it is that easy, those bitcoin stolen from exploit won't be sitting dormant in a wallet for years.

I believe laundering money through bitcoin isn't possible anymore in a huge sum if you're not state supported bad actors.

Every exchange will freeze, on chain analytics profiling company will profile your address as high risk and tell every company to block your address.

Your bitcoin will be tracked every seconds, so on and so on.

If you think it is that easy, you don't understand how transparent bitcoin's blockchain is. It is called transparent ledger for a reason.

[OcTradism]

If it is that easy, those bitcoin stolen from exploit won't be sitting dormant in a wallet for years.

I believe laundering money through bitcoin isn't possible anymore in a huge sum if you're not state supported bad actors.

Every exchange will freeze, on chain analytics profiling company will profile your address as high risk and tell every company to block your address.

Your bitcoin will be tracked every seconds, so on and so on.

If you think it is that easy, you don't understand how transparent bitcoin's blockchain is. It is called transparent ledger for a reason.

It's not actually easy to use centralized exchanges without risk of your account termination and fund freeze in the future. They hold user funds and have private keys, and have terms of service to freeze user funds with evidence found and reasons they see enough for doing that. From no control of your coin, traceability of your fund transactions, and identity documents from mandatory KYC, users lose many things by using centralized exchanges even before they have bigger problems with their accounts, funds and coins.

Reminder: do not keep your money in online accounts.

[reagansimms]

I am not against Bitcoin, i just need honest answers that would convince me more about Bitcoin because I'm newly into it. Some news I've seen about Bitcoin is either scam related, like people getting scammed through it on telegram, drug cartels using it to launder money, and criminals stealing from shop owners who use Bitcoin, if it is that better than fiat, why is it possible for criminals to use it or clean their dirty money with it?

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

From the past until now, criminals have always used something valuable and liquid, 80% of the world's money laundering still uses dollars, as well as gold and other valuables such as luxury cars, paintings and property. In essence, criminals are always using anything that is difficult to trace to launder money, previously they most often used cash, now they are switching to Bitcoin.

If you look deeper, criminals actually misunderstand Bitcoin's anonymity. They think Bitcoin transactions are untraceable, but in fact, all transactions from 2009 to the present are recorded on the blockchain, with addresses, amounts, and transaction times all publicly available. It's no wonder why the police/FBI can confiscate illegal Bitcoins such as those resulting from theft or exchange hacking, the reason being that the trail is open to everyone.
If the benchmark is anonymity, then cash is more anonymous than Bitcoin, no one knows when you give a $1000 cash bill to someone else.

[Oasisman]

I am not against Bitcoin, i just need honest answers that would convince me more about Bitcoin because I'm newly into it. Some news I've seen about Bitcoin is either scam related, like people getting scammed through it on telegram, drug cartels using it to launder money, and criminals stealing from shop owners who use Bitcoin, if it is that better than fiat, why is it possible for criminals to use it or clean their dirty money with it?

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

Bitcoin is indeed better than fiat in so many ways, but this right here is not actually the purpose for which it was created in the first place. I think you should read the whitepaper so you have a better understanding of why it is better than fiat. Let's not just focus on this negative side, because these criminal activities have long existed using fiat.

Bitcoin is a perfect means of money laundering? That's quite exaggerated to say. The internet is at the tip of your fingers, you can go check for yourself whether money laundering involving Bitcoin has increased or not over the years. Also, look up the reason why it has deceased, and don't get surprised if it will come back to fiat again, lol.

[Dewali]

I am not against Bitcoin, i just need honest answers that would convince me more about Bitcoin because I'm newly into it. Some news I've seen about Bitcoin is either scam related, like people getting scammed through it on telegram,

           There's no system of good and service exchange which Is free from criminal activity be it either wire transfer,cash, gold or digital currency .it all depends on individual who are in possession of the good and service not the tool itself . Many people believe holding a bitcoin in your wallet can be completely untraceable, however the truth with recent rate of adoption by the global community with increased of innovation of bitcoin technology those animosity of someone having a bitcoin without being traced is likely coming to an  end .
      If bitcoin is truly a superior to all form of criminal exchange, we could have  seen all sophiscated criminals abandoning other methods for it . But we don't see that because cash till remain the kings of many streets level and mid tier laundering because cash leave no trace for digital trials.

[asriloni]

All kind of money have ever used by criminal. So don't compare bitcoin to fiat because both have used by criminals in the dark web. There's no currency that is free from being used for the criminal activities. Stop to degeneralize bitcoin like it's the only crypto used to transact in th dark web. The fact that it's no longer most popular crypto used in the dark web or criminal.

Beside that bitcoin is a public blockchain and it's truly traceable. The only problem you don't know who is the owner of such wallet.

[Luzin]

Bitcoin is a perfect means of money laundering? That's quite exaggerated to say.

This is a good statement, saying perfection is a lie, but the best technology today seems easier to accept. So we have to understand that Bitcoin can be both a good and a bad tool it all depends on those who use it. It's the same with cash or other assets. Looking at the facts, we have to realize that the transparent nature of blockchain actually makes many transactions traceable. There are indeed mixer provider features, but that's a separate feature, not part of Bitcoin. So I don't agree with the author's statement.

[Vompola]

Do you believe that the light emitted from a smartphone is bad for your eyes? Well, let's say you are using a smartphone ignoring this issue, but using this smartphone you can do good things and you can do bad things. Now if you do bad things using a smartphone, will you blame the smartphone or yourself? The idea that only criminal activities are done with Bitcoin is wrong. There are constant incidents like bank robberies, theft, robbery, money laundering, but these are happening almost everywhere in the world, so who do you give ten stars to? If your mindset is such that only criminal activities are done with Bitcoin, then you come out of that mindset and think about what good things can be done with Bitcoin.