, using public domain image. Source: Hello dear members who make life on this prestigious @LeoFinance platform, decentralized finance is being used for money laundering by different criminal groups or individuals who require to launder that cash in order to be used legally in their work environment.
The cryptocurrency portal Coinmarketcap reports that Blockchain technology and NFTs are in one of the best moments, because the current value of investments in this platform exceeds the amount of the 12 banks with the highest income worldwide. Likewise, criminals have not overlooked the above mentioned and that is why Europol has generated a report where it indicates that cryptocurrencies are being used for money laundering, with this they seek to hide the true origin of the money obtained in their illicit businesses and thus change it to cash and be able to mobilize it in common banks.
This is undoubtedly one of the disadvantages of DeFi's platform, since its transparency and not having to account to anyone for the origin of your income and personal data makes it more difficult to detect its users, since they have absolute control of their cryptocurrencies and can withdraw it at any time, without being detected by the competent authorities.
These decentralized platforms make it almost impossible to trace their users, due to the blockchain that conforms it, because in order to reach a user of criminal origin they must go through a long and tedious path. In this sense, other strategies used by these people are the NFT, which are used to mobilize large mass as in the case of art sales where the NFT is already being used for art auctions.
The main countries involved in money laundering by cryptocurrencies are the US, China, Ukraine, the UK and Russia, according to a report by Chainalysis, where they report that through cyber espionage they have detected how Russia obtains large funds from Dark net. Similarly, China is located, since this country receives money for kidnapping and extortion originating mainly from North Korea. The main problem of this illicit money is that in order to be used legally it must be laundered with cryptocurrencies and that is where the Blockchain platform is involved.
As expected the Blockchain has not escaped criminals, as they have sought strategies to obtain their own benefits without being able to be apprehended by civil authorities. Until a future installment dear readers.
MATERIAL CONSULTED
Asset laundering, the flip side of cryptocurrencies and NFTs. Source:
