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Cryptocurrencies are not in demand ...

Cryptocurrencies are not in demand for money laundering – SWIFT
CONTENT

  • Cryptocurrencies are inferior in popularity to traditional money laundering schemes

  • However, virtual assets are most preferred when transferring large volumes

  • Attackers also use third-party services to cover their tracks.

International consortium of news organizations developing transparency standards.

Nevertheless, cryptocurrency assets are most preferable for laundering large amounts of money, SWIFT notes

Cryptocurrencies are not in demand ...

Society for Worldwide Interbank Financial Telecommunications (SWIFT) sees no preferential use of cryptocurrencies for money laundering.

The cooperative came to this conclusion in its new report “Follow the Money”.

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According to the document, the number of cases when cryptocurrency assets were used in the framework of money laundering is small..

Bypassing sanctions

According to SWIFT, cybercriminals still prioritize “traditional methods of money laundering”.

Nevertheless, cryptocurrency schemes are ahead of traditional ones by a margin when it comes to converting large amounts of money..

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Cryptocurrencies are not in demand ...

SWIFT noted the attractiveness to attackers of services such as mixers and toggle switches, which help to hide the source of funds by mixing transactions with large amounts of other funds..

Cryptocurrencies, according to the Association of Financial Institutions, are very popular in territories limited by severe sanctions.

Diversification of stolen goods

In particular, SWIFT referred to the hacker group Lazarus Group, which is believed to have close ties with the leadership of North Korea..

The hacker group used East Asian middlemen to launder funds after hacking cryptocurrency exchanges, using methods similar to those described for bank robberies.

SWIFT also indicated the alleged scheme by which the Lazarus Group was able to launder the stolen cryptocurrencies:

  • Having stolen cryptocurrencies, Lazarus Group transfers funds to several exchanges to diversify the risks of confiscation;
  • East Asian intermediaries working on behalf of the Lazarus Group and the regime receive a portion of the stolen funds;
  • East Asian intermediaries transfer cryptocurrency to their own addresses to further hide the origin of funds;
  • Cryptocurrencies are not in demand ...
  • Then, these same intermediaries transfer part of the funds received through new bank accounts that are linked to their accounts on crypto-exchanges, which allows converting cryptocurrencies into fiat;
  • Other stolen funds can be converted into bitcoin on prepaid gift cards that can be used on other exchanges to buy additional bitcoins.

Rescue of the drowning

The BeInCrypto editorial staff previously wrote that cryptocurrencies are most popular in countries with difficult access to banking services and a high demand for money transfers..

Among these were the countries of Latin America.

Analytical blockchain platform Chainalysis reports almost a million bitcoins on the darknet.

Most often, cryptocurrencies are used for payments for prohibited goods, including pirated software and computer viruses.

What do you think? Share your thoughts with us in the comments and join the discussion in our Telegram channel.

Disclaimer

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