The allegations of crypto being used for funding illicit activities such as money laundering are long associated with the crypto industry. However, a new theory which was highlighted in a news item suggested that there is a group of brokers on whose behest such laundering activities take place. Although handful, yet these crypto traders have been able to embezzle more than US$ 1.3 Billion.
When the news item was published, Reuters started off its own research into the matter.
This was later on confirmed also by Reuters that there are certain brokers who are involved in money laundering activities. The research paper has been published by Reuters on 21st February 2021 and is now a public document.
The document revealed that there are at least 270 wallet addresses where the laundered funds amounting to US$ 1.3 Billion were transferred. The document further pointed out that all these crypto addresses are directly interconnected with those traders who offer over-the-counter trading services. Ironically, 55% of this US$ 1.3 Billion has also been verified by a famous blockchain company called Blockchain.com, an independent researcher, Coinbase.
So what are these 270 wallet addresses and how are they being able to launder money without being caught? According to many experts and analysts from the field of cryptography, these 270 addresses are all part of a secret society. Their ultimate aim is to loot someone else’s money and then use methods to launder the money.
Even though they have been identified but global regulators and law enforcement agencies from the US as well have been failed to stop them. US Government Officials such as Janet Yellen and Christine Lagarde have both insisted upon putting strict rules and regulations.
However, their request seems ambiguous as it came when Tesla Inc.’s CEO, Elon Musk, announced putting US$ 1.5 Billion into Bitcoin. The request is therefore more like a warning to US economic giants because the more they invest in Bitcoin, the more US Administration is afraid. The genuine fear is that the US Dollar may not lose its status as global fiat which would lower its worth drastically. The US Government might be thinking that cryptocurrencies such as Bitcoin have become a class of assets that are mainstream.
In any case, the research also pointed out that the money is looted by conducting scams, hacks, ransomware, and cyberheists. Further details revealed that there are certain crypto trading platforms which to are also directly associated with this secret society.
However, the report did not include the money being embezzled on the basis of Bitcoin, which could be worst, advised Reuters.
It was reported in the research that the major beneficiaries of such illicit gains are from countries such as China, Russia, and the US. But the secret society is still out there and functioning without any fears.