Golden Age of Money Laundering

https://www.bitinstant.com/howitworks/cash

At first I was under the impression that the US government had a problem with bitcoins, just because they were looking for another thing to regulate/waste government resources on, but I didn't realize that bitcoins have made money laundering so easy, that a third grader could do it.

Pile of drug money-->anonymously deposit cash through bitinstant--> own bitcoins--> exchange bitcoins for cash in an offshore account--> invest your money like its not drug money

Am I missing something here, or have bitcoins completely revolutionized the money laundering industry? Even if the US government continues the fight against bitcoins, I don't think they alone can shut this thing down.

5 Comments
 

The bottom line is, yes, you are right, they simply don't want competition for control of currency, but yeah they make it easy to launder money. They're not unlike the anonymous bank accounts China used to draw support for banking years ago....they had a useful function but every criminal on earth made a beeline for them. I'm under the impression that if NSA can develop a virus that overheats Iranian centrifuges (it wasn't us wink wink nod nod) then they can destroy this if they really wanted to.

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