With technology, it can either be used for the greater or for the greater evil. It seems that just recently that Bitcoin was used to launder ~$4 billion USD worth of Bitcoin with the capture of a Russian criminal mastermind.
How Did It Get So Big? $4 Billion USD Is Freaking Huge
A US jury indicted Alexander Vinnik, the Russian mastermind which was the operator of BTC-e that started back in 2011. A small time setup trading in Bitcoin but was then used as a platform to launder money for those involved in crimes. This includes those who deal with shady business such as drug trafficking all the way to plain computer hacking and asking for ransom.
It was noted that the US justice department along with other federal agencies and task forces had to go deep undercover to unearth and finally capture his wrongdoing.
Mt Gox Hack Is Related
The Japanese-based bitcoin exchange that collapsed in 2014 after being hacked by Vinnik, Mt Gox was used as a launchpad to launder more money in the Bitcoin network.
Not only that, it seems that Europe is punishing those involved in other cybercrimes as well. Two of dark web marketplace for drugs, guns and other illegal items were also taken down last week.
All-Out War on Cybercrime, But Will Bitcoin’s Reputation Be Tarnished?
Apparently not, as everyone expected there would be a few bad eggs anyway. With the capture and collapse of this money laundering scheme, people’s confidence will be slowly restored. It might take some time, but as the saying goes – time heals everything. Very true indeed in the case of Bitcoin.
Perhaps it takes a lot more stringent regulation, but Bitcoin is all about deregulation, decentralization and allows for anonymity for those inside the system. So, it might take a few more expose’ such as this, before everyone starts to put a lot more thought on beefing up the security of Bitcoin and to safeguard its name as the premier cryptocurrency.
Category: Team WhaTechCompany profile: Tech junkie by profession and passionate about anything from the digital world, movies, games and reading. He loves writing and hopes you enjoy his writing as much as he does. Eza, is also known as Don in the virtual world, but don’t him me wrong, he's not a mafia type he's really a nice chap and a devout family guy.