Crypto and Money Laundering

I was watching a series today called breaking bad, some of you must have seen it, a series based on a chemistry teacher making hard drugs with his former student, this made him rich but he needed a cover to let him spend this drug money. Imagine making less than $100k a year and suddenly have $12 Million in your possession. Now its time to launder money, this was where they had problem. This movie was produced within the time frame 2008 and 2015, bitcoin juts launched and a lot of people didn’t know about it. While watching the movie, I couldn’t help but wish they knew about crypto, bought bitcoin with the money and just keep buying, if the story was real, they will be very rich right now. But I am sure that a lot of people must have laundered money through bitcoin during the early stage of bitcoin. But is laundering money through crypto really a good way to launder money?

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Whenever people want to talk about the negative effect or influence of crypto, many laundering is their go to, the pump, the hype and the inflow of liquidity, because that is the only thing that makes sense. I also blamed money laundering for the outrageous prices of NFTs because that was the only thing that made sense to me. But recently we have been seeing news of how lots of crypto money launderers are being caught through crypto. This was possible through the blockchain records, their activities were tracked and traced through the blockchain, so is crypto really safe for money launderers? The media won’t talk about this.

Because no matter how anonymous you want to be, your money is useless if you can’t spend it? What’s the use of using it? There must have been other ways to launder money through crypto successfully, like the tornado cash, but still, the idea that crypto is good for money laundering is false. Anyone can launder money in any way, they just have to be more careful and smart about it. If its small amount of money like $100k and below, I believe it can be laundered through crypto, because all it takes is $500 daily P2P transactions and within a year, you have your $100k cash at hand. But money above a million dollars is almost impossible to launder, because such transactions can’t be done without raising suspicions from your bank, or even if you want to do it cash, its more risky because people dont like carrying huge amount of cash for safety reasons. The safest way is to use an exchange and get the money sent to your account, if you are legit, you dont have to be scared, just prove how you made the money and you can spend the money peacefully. But if you are laundering, then you just have to keep having restless life figuring out how to launder the money.

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