New York man has been charged with operating a cash-to Bitcoin money laundering scheme. The case also demonstrates the negative bias of law enforcement towards crypto.
Bitcoin is a way to launder money
A Bloomberg report recently reported that Thomas Spieker, 42, was arrested for running a money laundering operation called “cash to Bitcoin” in New York.
He was said to have been bragging on social media about his activities, convincing clients that they would be safe. Spieker was searching Google for ways to make Bitcoin money, bragging to his friends that he had found a way to do so.
Spieker’s clients were also accused of a variety of crimes, including operating an illegal drug market on the dark internet.
Alvin Bragg, Manhattan District Attorney, stated in a statement that this case “shows how new technologies such as cryptocurrency can become key drivers for a wide variety of criminal activity that can easily span the globe.”
This sprawling network of international money laundering, as it is alleged, helped drug traffickers, an organised crime ring, to hide their criminal activities and send their proceeds around the world.
Let’s… back off a bit
Although it is a fact that Bitcoin and other cryptocurrencies can be used in illicit activities, the statement made by DA Bragg above seems a little outlandish. The entire operation was worth $2.3 million. This is a substantial sum for an average person but not a huge amount in the criminal world.
Let’s talk about money laundering. We can take a look back at how financial institutions have been repeatedly proven to be able to hold cash for criminals, drug lords and murderers.
We reported a few years back that a document leak indicated that large banks had funneled over $2 trillion of dirty money over the course of many years. Let’s take a look at some more recent news.
Documents claiming that Credit Suisse had thousands of accounts belonging allegedly to criminals were revealed in February. Although this has yet to be proven in court, the fact that an investigation is ongoing should alarm.
Sure, this sprawling web international money laundering helped drug dealers, an organized crime band, and scammers hide criminal activity,” as though legacy institutions hadn’t been accused for doing this for years.
Marla Brooks – Financial Analysis
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