The DOJ just busted a massive money laundering scheme, and it’s bad for Bitcoin

2020-2-14 05:56

The growth of Bitcoin and the crypto market has long been inhibited due to its perceived ties to the dark web and the criminal underworld, a perception that is primarily rooted in the technology’s genesis as a payment method on dark web marketplaces.

Although this narrative has largely dissolved in recent years, it is important to note that traces of it still remain amongst governments and retail investors, which has been slowing the technology’s widespread adoption.

This is emblematic while looking at the White House’s recent 2021 fiscal budget, which specifically names cryptocurrency-related crime as one thing they intend to crack down on in the near future.

Further bolstering this narrative is the recent news regarding a stunning $300 million money laundering scheme that was just busted by the Department of Justice, which may serve as the poster child for the government’s growing case against Bitcoin.

DOJ conducts major Bitcoin money laundering takedown

Recently, news broke that the US Department of Justice charged an Ohio-based man with laundering over $300 million by utilizing Bitcoin.

The money-laundering scheme, which has been described as a “tumbling” operation, was run by Larry Harmon, who put together an advanced money laundering operation deemed “Helix” that helped clean money that was used for transactions on an underground marketplace called AlphaBay.

The goal of this so-called Bitcoin “mixer” service was to mask the wallet addresses associated with specific transactions, with BTC entering a cumulative wallet before being sent to the target wallet – minus a fee.

Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division spoke about Helix in the indictment’s press release, saying:

“Helix allegedly laundered hundreds of millions of dollars of illicit narcotics proceeds and other criminal profits for Darknet users around the globe…This indictment underscores that seeking to obscure virtual currency transactions in this way is a crime, and that the Department can and will ensure that such crime doesn’t pay.”

The government’s case against BTC grows 

In the newly released White House 2021 fiscal budget, the term “cryptocurrency” is mentioned twice, with the technology being directly linked to terrorism financing and other criminal activity.

Furthermore, the budget also notes that the White House intends to move the Secret Service back underneath the Treasury Department so that it can better police Bitcoin and the crypto industry.

It remains unclear as to whether or not the Secret Service’s involvement within the crypto markets would be a net positive or negative, it is highly probable that the recent DOJ Bitcoin money laundering bust will be an impetus for the government to get further involved within the markets.

The post The DOJ just busted a massive money laundering scheme, and it’s bad for Bitcoin appeared first on CryptoSlate.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Bitcoin (BTC) íà Currencies.ru

$ 68121.95 (+0.22%)
Îáúåì 24H $26.584b
Èçìåíåèÿ 24h: -0.97 %, 7d: -1.90 %
Cåãîäíÿ L: $67343.07 - H: $68240.24
Êàïèòàëèçàöèÿ $1342.372b Rank 1
Öåíà â ÷àñ íîâîñòè $ 10129.47 (572.51%)

bitcoin dark web perception ties underworld criminal

bitcoin dark → Ðåçóëüòàòîâ: 126


Ôîòî:

Fentanyl dealer to forfeit $4M in Bitcoin and quadrillions of bank notes

A dark web kingpin has forfeited $4 million, including Bitcoin and 100 quadrillion Zimbabwe bank notes after selling drugs to an undercover cop via encrypted email. Richard Castro, of Windermere (Florida), pled guilty to one count of conspiracy to distribute and possess with the intent to distribute three controlled substances – carfentanil, phenyl fentanyl, and fentanyl.

2019-7-29 12:38


Foot in Mouth: Steven Mnuchin won’t be talking about Bitcoin in 10 years but everyone else will

One day I’ll be famous and you’ll tell everyone you were once regulating me! Bitcoin has had a wild ride since 2008, at the intellectual behest of Satoshi Nakamoto. From being chided as the ‘currency of the dark web,’ to be talked about, in no uncertain terms, in the halls of Congress; from being lambasted […] The post Foot in Mouth: Steven Mnuchin won’t be talking about Bitcoin in 10 years but everyone else will appeared first on AMBCrypto.

2019-7-25 17:31


More trouble for Facebook’s Libra, Bitcoin falls below key indicator and more

Crypto News – 24 July – More trouble for Facebook’s Libra, Bitcoin falls below key indicator and more Don’t forget to follow us for our daily videos pic.twitter.com/CvsXwe2o5P — AMBCrypto (@CryptoAmb) July 24, 2019 Crypto News – 24 July Bitcoin puts two paradigm shifts into motion Bitcoin has evolved from the dark web and the […] The post More trouble for Facebook’s Libra, Bitcoin falls below key indicator and more appeared first on AMBCrypto.

2019-7-24 19:00


Monero, ZCash record growing acceptance on dark web merchant sites; Bitcoin rules the roost

Bitcoin’s popularity on the dark web net is no secret, with cryptocurrencies focused on anonymity and privacy recording growing acceptance in its shady underbelly. The growing use of privacy-centric coins especially is mainly because it provides anonymity on all 3 facets of the transaction – sender’s address, receiver’s address, and the transaction amount.

2019-7-17 18:00


Ôîòî:

This Bitcoin money-laundering cartel was operating from inside a Florida prison

Authorities in Florida have busted an elaborate operation which saw prison inmates use Bitcoin to launder thousands of dollars via their commissary accounts. An investigation by Pasco County Sherriff’s Deputies revealed how inmates at the county jail were having money deposited into their commissary accounts using stolen credit cards.

2019-7-4 15:46


German Police Bust Largest Dark Web Store ‘Chemical Revolution’ Where Users Paid Bitcoin For Drugs

The Police in Germany on June 28 raided an organized criminal syndicate, Chemical Revolution, a dark marketplace that allows its teeming customers to purchase all manner of drugs with Bitcoin. The latest development by the authorities in Germany was contained in a press release issued by the office of the Federal Criminal Police Office. The […]

2019-6-29 01:02


Silk Road weed dealer fights Vancouver police over $2.6M in seized Bitcoin

Vancouver police have been accused of misleading a justice of the peace in a plot to seize $2. 6 million (CAD$3. 5 million) in Bitcoin owned by a dark web marijuana trafficker, CBC reports. Authorities believe the Bitcoin, found on hard drives seized in 2013, to be the proceeds of illegal activity — specifically the selling of large amounts of cannabis via seminal dark web marketplace Silk Road.

2019-6-29 17:07


US Federal Attorney: Bitcoin Used to Indict Suspected Fentanyl, Proves It is No Good for Evading Authorities

Another suspected dark web drug dealer is about to stand trail because he wrongly believed Bitcoin transactions were entirely anonymous. This has prompted the US Attorney for the Northern District of Texas, Erin Nealy Cox, to issue a warning for all those attempting to deal drugs online using Bitcoin.

2019-5-30 00:00


Ôîòî:

Israeli Police, FBI Apprehend Owners of Darknet Site Deep Bot Web

Two Israeli citizens have been apprehended by law enforcement based on suspicions that they developed and ran a darknet marketplace for dealing illegal goods. The Israeli police announced via Twitter that it has collaborated with the United States Federal Bureau of Investigation (FBI) to arrest two locals who they believe managed the dark web marketplace, which used bitcoin to facilitate trades.

2019-5-8 18:42


Ôîòî:

Israeli Police, FBI Apprehend Owners of Darknet Site Deep Dot Web

Two Israeli citizens have been apprehended by law enforcement based on suspicions that they developed and ran a darknet marketplace for dealing illegal goods. The Israeli police announced via Twitter that it has collaborated with the United States Federal Bureau of Investigation (FBI) to arrest two locals who they believe managed the dark web marketplace, which used bitcoin to facilitate trades.

2019-5-8 18:42