US Treasury Warns DeFi Is Used by North Korea, Scammers To Launder Dirty Money (coindesk.com) 36
Decentralized finance (DeFi) services that aren't compliant with anti-money laundering and terrorist financing rules pose "the most significant current illicit finance risk" in that corner of the crypto sector, according to the U.S. Department of the Treasury's first analysis of hazards from the technology. From a report: In an expected risk assessment, published Thursday, the Treasury Department said thieves, scammers, ransomware cyber criminals and actors for the Democratic People's Republic of Korea (DPRK) are using DeFi to launder proceeds from crime. On the basis of its findings, the department recommends an assessment of "possible enhancements" to U.S. anti-money laundering (AML) requirements and the rules for countering the financing of terrorism (CFT) as they should be applied to DeFi services. It also calls for input from the private sector to inform the next steps.
"Clearly, we can't do this alone," said Brian Nelson, Treasury's undersecretary for terrorism and financial intelligence, in a Thursday webcast hosted by ACAMS, a global organization focused on preventing financial crime. "We call on the private sector to use the findings of the risk assessment to inform your own risk-mitigation strategies." The 40-page report warns that "DeFi services at present often do not implement AML/CFT controls or other processes to identify customers, allowing layering of proceeds to take place instantaneously and pseudonymously."
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You own crypto. Anyway....
Who says we don't care as NK counterfeiters? What should we do about it? Arrest Kim Jong-un? Invade? Fire nukes?
Back here on planet earth, the ransomware scumbags still ask for bitcoin so what is this about criminals not using it?
And what is this terrorist banking system you're talking about?
Oh never mind, I'm just teasing, I did everything in bitcoin. I bought my house, my car, pay my utility bills, my kid's college, fill my tank, and but my morning coffee with bitcoin becau
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His holding or not holding crypto does not strengthen or weaken his argument.
It only explains why he'd make such a shitty argument. The alternative is he is dumb as a box of bricks. I went with the more polite and gentle option.
Mettle, sure, but please explain exactly what we should do about a state run counterfeiting operation in a country with nukes run by a mad man which is essentially a giant locked down prison. It is easy to sit there and say, "oh you Americans! Just go do it and stop complaining!"
Re:What is dirty money? (Score:4, Interesting)
Re: What is dirty money? (Score:3)
It has lots of barriers for transferring (Score:1)
There's also the enormous amount of computing power and huge delays needed to do any transfer of money. So far attempts to fix that
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You been on any exchanges lately? Some of them quite clearly have had wash trading for years, but the posted buy/sell walls are quite real. Try filling a buy order. They don't vanish into thin air when you sell your crypto. Or vice versa.
Otherwise you're full of it as usual. But thats what you get for looking at bitcoin as a model for all blockchain.
It doesn't matter what cryptocurrency you use (Score:2)
And again what we're talking about here is liquidity. For a small amount of some random cryptocurrency or even Bitcoin yeah there's going to be enough liquidity in the market for you to get out when you want to. But when the inevitable crash comes you're going to
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Bitcoin is not built on privacy. Bitcoin is also assuming one has full Internet access and has a device that can parse a 300+ GB blockchain to ensure one isn't double spent.
The last thing I want to use for my personal spending is Bitcoin or conventional cryptocurrencies. Why create an immutable, self-proving log for any and all purchases I do which is public, and will be there forevermore? If I were using Bitcoin for something like moving wealth to it so I could get past a border with just my BTC wallet,
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... However, do I want people on the Internet know about everything I'm doing?
I would like to see a Bitcoin 2.0 that was able to handle anonymous transactions, similar to DASH, ZCash, or Monero, and had the ability to have transactions pruned, so one didn't have to have storage for every transaction that has ever happened on that blockchain... just enough to validate that the currency hasn't been double spent, and is proper, then go from there. Also, having multi-sig is nice as well, so people can set up escrow businesses, to ensure that Alice sent Bob a working iPhone instead of an iCloud locked one, and once Bob confirms it is working, Charlie signs the transaction, allowing Alice to get paid.
Why is it that any time bitcoin critics pop up on Slashdot, they regurgitate FUD that is many years out [bitcoin.it] of [bitcoin.org] date [bitcoin.it]?
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It is the STASIfication of society. Everyone is required to rat on everyone else - banks, doctors, lawyers, libraries, pharmacies, ISPs, phone companies, airlines, computer repair shops, schools - spending their time and money at the government's behest to collect data on you and to report it to the central scrutinizer.
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People do care, it's a crime, it gets prosecuted. "Nobody cares" is just a boring term of phrase that never means what it says. Similarly, the US was very concerned about DPRK counterfeiting dollars, they didn't look the other way. But if people want to make an anti-government point they often start with outright exaggerated claims or lies.
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The money/coins/tokens/something of value is considered 'dirty' because it was all stolen. NK has done a great job of stealing crypto from projects all over the world. Then they use DeFi and mixers to obfuscate the movement and eventual cash-out.
It is amazing that still in 2023 that the crypto market does not seem to understand why financial markets are regulated. Crypto is a hotbed of every financial scam ever plus new ones. Places like the US start to care when the figures are in the billions of dollars a
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Dirty money now is money used by anyone the US doesn't like.
This is kind of true in a warped and irrelevant kind of way. Any money obtained through activity the US considers illegal and money held by organizations or nation-states the US considers rogue or in violation of the US's recognized international law (there isn't really such a thing as true international law) is considered dirty money by the US. That is then true for most if not all other nations' definition of dirty money. In the case of the US though, in most if not nearly all cases they are in agreement
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This is not about funding. This is about _laundering_. Try to keep up.
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Bullshit.
Freedom yeah! (Score:1)
Not long before we have to KYC to go to the toilet. You know to prevent terrorism.
Re: Freedom yeah! (Score:2)
And Irak had bio weapons. (Score:1)
Monetary system designed (Score:2, Insightful)
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> By anarchists is chaotic, unreliable, and generally all-around malicious. News at 11.
Now consider that the monetary system designed by Authoritarians is used for 99.995% of all money laundering, arms sales, murder-for-hire, official corruption, and child trafficking.
Continue with your analysis...
I wouldn't call those anarchists (Score:2)
Water is wet (Score:2)
In other news
Water is wet
Sky is up
earth is round
trans people exist
Of course it was used to launder money .. that's practically its reason to exist.
Hell, the ubiquitous BTC ATMs that are still around me have very llittle other usage.
AKA you can buy a burner SIM for $5 or less to get past the phone based wallet authentication. You insert $xxxx in cash into the machine and get a BTC equivelent. Now that can be moved at will.
So again, working as designed.
All about control (Score:3)
Money has always been an effective way to control people. Now "De-FI", as they're calling it, undercuts that control. Their concerns have nothing to do with "national security". Their concern is national power.
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I am shocked! (Score:2)
A gigantic pseudo anonymous Ponzi scheme that allows to completely bypass all KYC and laundering regulations is being used by the worst and greediest fcks this world has to offer?
I am mildly shocked!