One of the biggest fears for regulators about cryptocurrency is that of the possibility to be used as a tool for money laundering. The law enforcement of the United States has expressed their worries that Mexican drug cartels use crypto channels to launder money and in today’s crypto news we find out more.
According to law enforcement reports, Chinese crypto channels are where the Mexican drug cartels find a way to break the law. The senior official at the US Drug Enforcement Agency Paul Knierim says that the concerns come at a time when Chinese exports of chemicals used in the process of making drugs are increasing. Knierim said:
‘’The shift toward Chinese and Asian money launderers is believed to be, in part, due to the natural relationship created by the large volume of both licit and illicit trade goods and chemicals imported from China. The use of an Asian money broker simplifies the money laundering process and streamlines the purchase of precursor chemicals and paraphernalia utilized in manufacturing drugs for street sales.’’
The DEA pointed out that over the past 10 years there has been a decline in the amount of cash seized by the law enforcement which could mean that there are new methods of moving cash without being noticed.
The government agency also noted that the Chinese Underground Banking Systems are the most important channel for money laundering. Many CUBS brokers are turning to bitcoin and drug traffickers also turn to cryptocurrency because of their untraceable nature.
Despite the fact that there are plenty of cryptocurrencies used to launder money due to their private nature, there are also many of which show transparent transactions and can be viewed on the blockchains.
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“We are not involved, and the movement is not tied to the procedure outlined in the UNUS SED LEO white paper,” she said.The anonymous nature of Bitcoin wallets is still a mystery for many - which is why moves like this one by the stolen Bitfinex Bitcoin are only evidence of hacker activity after the theft. As such, they can only be used for forensic analysis by blockchain sleuths - but often result in money laundering activity and hide the funds' ultimate destination. For those of you who don't know or haven't been following the best cryptocurrency news sites, the Bitfinex theft was the largest loss of Bitcoins by an exchange since the Mt. Gox hack in early 2014 which wiped away $350 million. In February this year, law enforcement in the United States managed to retrieve 27.66270285 of the stolen Bitfinex Bitcoin (BTC) which had been taken in the hack. Right now, we are all far from even thinking about retrieving the stolen Bitfinex Bitcoin. However, it is good that accounts like Whale_Alert exist and show some activity on the wallets following their hack.
FBI Investigation On The QuadrigaCX Case Emerges In The US
The Federal Bureau of Investigation (FBI) has officially expanded the QuadrigaCX case where the founder suspiciously died, with more than $100 million in cryptocurrency vanishing. Because of these reasons, the FBI investigation was relocated to the United States today, and the agency took to Twitter to ask for US-based victims of the crime to come forward.
This is actually a good thing for the market, as the ongoing trend of government intervention is either part of an evolution or a new pattern showing anti-crypto activity. It is all based on how you see things from your perspective.
However, the FBI investigation definitely shows serious attitude towards resolving the QuadrigaCX case, which is particularly interesting because of the mysterious activities and elements to it. One of them is the death of its CEO a month after the exchange closing, to then blame on a lack of access to wallets held by the deceased. As if this issue was not crazy enough, the QuadrigaCX funds were later mysteriously sent to the addresses in question.
A lot of questions linger, as the FBI investigation shows, and are subject to many mysteries. In our coming altcoin news, we have been reporting updates on the QuadrigaCX case - up until now where it seems like the case will go beyond a procedural bankruptcy court in Canada. From this, we can see that the exchange will probably be put under criminal investigation for its services rendered to US citizens.
As a result of this, whoever is left of the executive staff may be off the hook. In cases like these (picked up by the media and the best cryptocurrency news sites), it is often a question whether or not the government can recoup anything. However, the FBI investigation must determine if there are assets with value and to this date, no significant assets like that have emerged.
As a final note, many analysts believe that the actual problem for QuadrigaCX are actually its business decisions and relationships, which were the backbone of the struggle when the Canadian bank froze the exchange's assets.
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