CipherBlade, the blockchain intelligence company accused the Wall Street Journal (WSJ) of using faulty methods in the investigation of the crypto exchange platform ShapeShift by overestimating the amount of money laundered via the exchange. More on this analysis, we read in our crypto news below.
CipherBlade published a report on their blog post yesterday as it says that the WSJ published a long document for the fall of 2018 that ShapeShift facilitated the laundering of more than $9 million via cryptocurrencies.
As previously reported on our DC Forecasts website, the Wall Street Journal claimed that the exchange processed more millions of dollars and that most of the money was later converted into privacy coins such as Monero. CipherBlade made a lengthy analysis of the investigation where it shows that:
“By tracing alleged ‘laundering’ through ‘no more than two intermediaries before reaching an exchange’, the WSJ’s stated methodology was fundamentally flawed […] The tracing of any funds — illicit or not — over the course of multiple transactions is extremely difficult, and presenting the total contents of subsequent wallets as illicit is forensically unsound.”
CipherBlade stated that WSJ’s claims were distorted and that by using a decent forensic method would show a granular tracing of privacy coins:
“Of the ShapeShift addresses which receive ETH within three hops from the initial dirty addresses, less than half of the ETH traded through them are tainted. Using the most generous assumptions, this is still only 23.53 percent of the WSJ’s claimed $9 million.”
CipherBlade also wrote a dozen of criticism of the technical analysis of WSJ but also for its collected data that doesn’t support their own conclusions. The intelligence company noted that most of the addresses from ShapeShift to WSJ’s spreadsheet, only 30 percent correspond to trades that turn out to be exchanged coins for Monero. The company is also focused on money laundering by using the Ethereum (ETH) cryptocurrency and its network since in some cases, privacy coin conversions were involved and also didn’t pay much attention to the Bitcoin-related data that was provided by the Wall Street Journal.
ShapeShift founder and CEO Erik Voorhees also stated that the claims made by the WSJ were ‘’factually inaccurate and deceptive’’ and that the authors didn’t really understand blockchain or cryptocurrency technology.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
DC Forecasts - Newsletter and get recent news directly to your inbox! Daily Newsletter Bitcoin NewsAltcoin NewsLitecoin NewsEthereum NewsBlockchain NewsBitcoin ScamsRegulationExpert AnalysisPress ReleasesCardano NewsRipple NewsLibra NewsBitcoin Cash NewsTron NewsNexo NewsVechain NewsStellar NewsTezos NewsBinance Coin NewsCoinbase NewsChainLink NewsEOS NewsIOTA NewsTether NewsBitcoin SV NewsMonero NewsEthereum Classic NewsDash NewsUNUS NewsCosmos NewsMECX Token NewsNEO NewsDC Forecasts Announcements
Daily Newsletter Bitcoin NewsAltcoin NewsLitecoin NewsEthereum NewsBlockchain NewsBitcoin ScamsRegulationExpert AnalysisPress ReleasesCardano NewsRipple NewsLibra NewsBitcoin Cash NewsTron NewsNexo NewsVechain NewsStellar NewsTezos NewsBinance Coin NewsCoinbase NewsChainLink NewsEOS NewsIOTA NewsTether NewsBitcoin SV NewsMonero NewsEthereum Classic NewsDash NewsUNUS NewsCosmos NewsMECX Token NewsNEO NewsDC Forecasts Announcements
DC Forecasts provides a comprehensive source of the latest news about cryptocurrency news daily. Read more on our about us page for details.