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Cryptocurrency offers a unique form of money laundering

On Behalf of | Mar 7, 2022 | Blog, White Collar Crimes |

Cryptocurrency makes it easier for some individuals to transfer illegally obtained money. The original use of cryptocurrency is to exchange money without the use of a central authority like a bank. For residents of Michigan and other states, this presents more opportunities for using cryptocurrencies to commit money laundering.

The technology of cryptocurrency

Cryptocurrency is a form of technology that involves the virtual transfer and storage of financial information. Digital money is stored in a virtual database, and the financial transactions are secured using cryptography. This type of currency is not available in physical form and is not issued by a bank or government. All of these features make it easier for individuals to engage in money laundering and easily and instantly move illegal funds across country borders.

Rising rates of cryptocurrency crimes

Cryptocurrency is involved in a growing number of white-collar criminal offenses. Bitcoin transactions allow anonymous users to hide the origins of their illegal financial transactions. Hackers can transfer, withdraw and deposit money without leaving a trace of identification. In addition, these fraudulent actions are not regulated by anti-fraud laws and regulations. However, remaining 100% undetected is not possible, and more law enforcement agencies are finding ways to find those who use cryptocurrency for money laundering.

A growing form of internet fraud

People who want to secure their financial transactions often use or consider using cryptocurrency. Internet technology has made it much easier to protect money as it’s being stored or transferred to other countries. By the same token, money launderers have found it easier to hide their identities and origins of their money, so law enforcement agencies are putting forth more efforts to detect illegal online transactions and crimes.