WSJ’s ShapeShift Exposé Overstated Money Laundering by $6 Million, Analysis Says

When it comes to cryptocurrency transactions, questions about alleged money-laundering quickly get thorny. A Wall Street Journal investigation from last September, titled “How Dirty Money Disappears Into the Black Hole of Cryptocurrency,” claimed the crypto conversion platform ShapeShift had facilitated at least $9 million worth of money laundering over several years with “a parade of suspected criminals.” Now, at ShapeShift’s request, the blockchain analytics firm CipherBlade recreated the 2018 report and found less than $3 million in transactions involving potentially “tainted” funds. The main distinction here is that CipherBlade focused…

QuadrigaCX CEO Used Personal Money to Fund Exchange During Litigation With Bank in 2018

The late founder of Canadian crypto exchange QuadrigaCX, Gerry Cotten, was purportedly funding the exchange with his own money while it was in litigation with a major Canadian bank. Cotten’s widow Jennifer Robertson revealed details about the exchange’s financial situation in a statement published on March 13. The statement reads that Cotten was putting his own money into Quadriga to fund user withdrawals in 2018, after the Canadian Imperial Bank of Commerce (CIBC) had frozen five accounts holding $21.6 million. Robertson stated: “While I had no direct knowledge of how…

Revolut CEO Refutes Claims of Negligence and Money Laundering Breach

The founder and CEO of United Kingdom-based digital banking app Revolut publicly denied allegations of a money laundering breach and negligence by the company in a blog post Mar. 1. The latest in a series of publicity disasters to afflict Revolut, as U.K. newspaper the Telegraph last week alleged that executives had deliberately decommissioned Anti-Money Laundering (AML) software earlier last year. Further reporting by the Telegraph has revealed that the company had attracted the attention of the U.K.’s finance regulator, the Financial Conduct Authority (FCA). “This week, there’s been some…

Bitcoin Ransomware Hackers Laundered Money via WEX Exchange

Big Four consulting and auditing company PwC has linked Iranian nationals behind Bitcoin (BTC) ransomware scheme SamSam to the crypto exchange WEX in a recent report published in February.    The report is based on information that was previously disclosed by the United States Department of Justice (DoJ). As per the DOJ, two Iranians — Faramarz Shahi Savandi and Mohammad Mehdi Shah Mansouri — were responsible for creating SamSam. SamSam is a ransomware demanding Bitcoin that reportedly damaged multiple U.S. companies, government agencies, universities, and hospitals. Within 34 months the hackers…

FATF Issues Preliminary Guidelines on Digital Assets to Combat Money Laundering

The Financial Action Task Force (FATF), an intergovernmental organization that develops policies against money laundering, has published preliminary guidelines for cryptocurrencies on its website on Thursday, Feb. 28. The FATF held a meeting on preliminary crypto requirements on Feb. 22. According to the organization, the new text of the Interpretive Note to Recommendation 15 — which contains  requirements for regulating and supervising digital asset services providers — has been finalized. However, the FATF expects to benefit from private sector consultations that are scheduled for May, asking entrepreneurs to send their…

Russian Supreme Court Classifies Illicit Crypto Use Under Money Laundering Laws

The Russian Supreme Court has included the illicit use of cryptocurrencies in the list of criminal offences related to money laundering, local legal news site Pravo reported on Tuesday, Feb. 26. The court has introduced new amendments to the anti-money laundering (AML) decree issued in July 2015. These clarifications relate to Russian criminal code articles dedicated to the legalization of property acquired via criminal means. According to Alexander Chervotkin, a judge who commented on the regulations, in the three years since the decree was signed, cryptocurrencies have became widely used…

Canadian Banks Wary of QuadrigaCX Assets’ Origins, Cite Money Laundering Concerns

Canadian banks have showed hesitation concerning the management of insolvent cryptocurrency exchange QuadrigaCX’s assets, national public broadcaster CBC reports on Feb. 22. QuadrigaCX has faced financial difficulty following the sudden death of its founder Gerry Cotten, who was the allegedly only one with access to the exchange’s cold wallets. As Cointelegraph reported earlier this week, QuadrigaCX has sent its remaining crypto assets from its hot wallets to Big Four auditing firm Ernst & Young, the court-appointed monitor overseeing the case. During Friday’s court hearing, lawyers for the Bank of Montreal…

Commerzbank, Siemens and Continental Complete Blockchain Money Market Pilot

German banking and financial services company Commerzbank and technology companies Continental and Siemens have jointly conducted a money market security transaction pilot using blockchain technology. Cointelegraph auf Deutsch reported on the development on Feb. 21. Money market securities are short-terms assets that serve for financing companies and usually have a maturity of one year or less. Usually, the processing of a payment takes two days due to a clearing process. The aforementioned parties “for the first time” conducted a blockchain-based money market security transaction worth 100,000 euro ($113,340) within a…

Bullish Bitcoin (BTC) Inch Close to $4,500 as Tech Leader Says it is Better than Paper Money

  Bitcoin prices are trending higher, up 8.1 percent in the last week Elon Musk says Bitcoin and crypto is brilliant for value transfer Transactional volumes high, behind recent higher highs   Adoption is on the rise, and it is at this juncture that Elon Musk has reasons to believe that Bitcoin is brilliant and a better tool for value transfer. As an influencer, this is bullish, and as long as prices are on the rise, we expect momentum to build up. Bitcoin (BTC) Price Analysis Fundamentals Interesting days ahead.…

Bitcoin Has ‘Quite Brilliant’ Structure, Paper Money is Going Away

Technology entrepreneur and Tesla CEO Elon Musk said that Bitcoin’s (BTC) structure is “quite brilliant” and that digital currency is “a far better way to transfer value than pieces of paper.” Musk made his remarks during an interview on advisory services firm ARK Invest’s podcast on Feb. 19. In response to a question about whether Bitcoin becomes the only native cryptocurrency of the Internet, Musk said that “the Bitcoin structure was quite brilliant,” and that he thinks that “one of the downsides of crypto is that computationally it is quite…