Crypto Money Laundering

Last Updated on 2 weeks by Ameer Hamza

There are many valid applications for cryptocurrencies, one of which is providing a low-cost, high-speed, easily accessible, and globally usable payment system to millions of unbanked people worldwide. On the other hand, they can be abused just like any other form of value storage. In some instances, criminals launder criminal or corruptly obtained funds by using cryptocurrency. Find more information below.

Crypto Money Laundering Cases Under Investigation

The Economic Times quotes “unnamed sources” as saying that India’s financial crime investigators are looking into ten cryptocurrency exchanges. The ten exchanges are suspected of crypto money laundering of over ten billion rupees ($125 million). The Enforcement Directorate froze $8 million in assets that belonged to WazirX, a local cryptocurrency exchange. WazirX is one of the biggest in the country in terms of “assisting accused instant loan app companies.” As reported by the Economic Times, one official claimed that identical deals had been made in other markets. In its report, WazirX helped 16 different fintech companies that authorities investigated for possible money laundering using cryptocurrencies. reported in December 2022 that Binance’s CEO could be charged with money laundering. The largest cryptocurrency exchange, Binance, and its top executives may face charges of money laundering and sanctions violations in the United States. This is the latest development in a probe that began in 2018 and gained momentum after the FTX collapse. Chief executives like Changpeng “CZ” Zhao, the company’s founder, may be targeted. The Money Laundering and Asset Recovery Section, the National Cryptocurrency Enforcement Team, and the U.S. Attorney’s Office for the Western District of Washington, which is located in Seattle, are all reportedly involved in this case.

On January 13, 2023, four criminals were recently given lengthy prison terms for stealing and laundering Bitcoin and other cryptocurrencies from an Australian cryptocurrency exchange. At Preston Crown Court, defendants Stephen William Boys, 58, James Austin-Beddoes, 27, Jordan Kane Robinson, 23, and Kelly Caton, 44, were found guilty. They were found guilty of fraud, conversion, and transfer of criminal property and received a combined 15-year sentence. Between October 2017 and January 2018, all four were close friends of James Parker, the plot’s Blackpool-based mastermind. Using a flaw in the cryptocurrency trading platform, James Parker and his associates stole £21 million in credits. James Parker sadly passed away before he could be tried and sentenced.


Cryptocurrencies are used to launder money from illegal activities. Some examples are ransoms for kidnappings, cybercrime, and the sale of illegal drugs and other goods on the dark web. But while cryptocurrency is making it possible for many people to join the financial mainstream, it is also used for a lot of illegal things. Certainly, it is more important than ever to devise ways to control these kinds of actions.


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