DeFi Money Laundering & Scam Risks for Users: Real Case
Decentralized Finance (DeFi) has become more and more popular in the past few months. According to the statistics, by Q1 ’21, the overall monthly trade volume has almost tripled compared to December 2020 ($25 billion). The average daily DEX trade volume grew from $0.71 billion to $2.26 billion — a quarterly rise of 318%. Don’t let it catch you by surprise, but even adult bloggers started to yield farm and are currently earning a profit on DEXs. Although the rapid growth is evident, DeFi is yet a Wild West market – half of all thefts in 2020, totaling $129 million,....
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A federal grand jury has charged one man with operating an unlicensed money transmitting business and two others with money laundering and related charges in the first bitcoin-related case before the Western District of New York, according to the U.S. Attorney’s Office and the Western District of New York. The grand jury has charged Richard Petix of Rochester, N.Y. with operating an unlicensed money transmitting business and making false statements. The grand jury also charged Zhe Wang, 20, and Kevin Szura, 20, both of Queens, N.Y., with money laundering, conspiracy to distribute....
An argument being presented in an American courtroom will alarm many common sense observers: bitcoin isn’t real money, so someone accused of laundering it shouldn’t be convicted of money laundering. This is the argument that attorneys are using in asking a Florida judge to dismiss money laundering charges against Michell Espinoza, a Miami man who police say sold and laundered $1,500 worth of bitcoins to undercover detectives, according to The Miami Herald. Economics Professor Testifies. Charles Evans, an economics professor at Barry University, acting as a defense witness, told the court....
A New York man was charged Friday with operating a crypto money laundering scam that he publicly promoted on social media, bragging to clients he could help them stay “totally off the radar.” The individual, a former party organizer, was charged by the Manhattan District Attorney with laundering $2.7 million in bitcoin and cash to […]
Is it possible to be laundering money with Bitcoin if it’s not legally considered money? A court case in Florida may be about to give us an answer. Can’t Launder Money If It’s Not Money. The by-now infamous case concerns Michel Espinoza, a young computer programmer and early bitcoin trader arrested in January 2014, and later charged with dealing in....
PRESS RELEASE. DeFi is a risky investment. It can deliver huge returns – but also you can waste all your money. Objectively, many DeFi projects are a scam, and if they give dishonest promises or steal your money you have no way to get your money back or find the responsible persons. For this reason, the odds of becoming rich with investing in DeFi are against you. On the other hand, safe investing like government bonds or a stock market is also not very interesting. The 3% annual yield is interesting only to pensions funds and old-fashioned investors. The real trick is finding the....