Digital Currency Exchange
Welcome to crypto right the show takes the magic and mystery out of crypto currencies in amateur investing I'm your host David Haye and today's episode will be entirely dedicated to bit coin money laundering bitcoin has received an unfair rap lately and one of the questions I get asked most frequently is its association with the criminal underworld and I feel that reputation has been unfairly earned so in this episode I'm going to talk a little bit about the history of money laundering.
Cryptocurrency
I'll show you how a typical money laundering scheme normally works and then I will speculate as to how people are currently laundering money using bitcoin.
What is cryptocurrency?
I feel like I have a unique viewpoint on this mainly because I have lived in Australia South America North America and Europe I've operated businesses in those countries and while I don't have any experience in the criminal enterprise I think it is fairly easy to work out the financial mechanics that's what I'll be sharing with you today.
That's before we get started with this video I wanted to update you on some of my progress I immediately purchased a theory with it and I want to give that back to the community because the whole reason is to promote block chains and promote crypto currencies so in each video I'm going to give away point 01 a Syrian that's only I think about 30 or $35 but you know maybe you hold that in a couple yes with a couple 0 who knows but if you would like an opportunity for $35 worth of Ethereum.
All you need to do is comment below make sure you include your Ethereum address and on my next blog I'm going to use this random comment picker application to find a wind up. Broadcast ed. All broadcast ed on the next video I'll confirm payment and then hopefully we can sort of make this a thing so that way as I'm earning revenue or any advertising revenue from YouTube for producing these videos I consider re distribute it to you guys get some more people excited about crypto and just sort of continue to build a community.
So in today's episode I'm gonna show you exactly how criminals launder money using bitcoin and the reason that I'm going to do this is I think there's a lot of confusion and people keep associating be calling with criminal activity.
So what I'm going to do because I run businesses in multiple countries is I'm gonna show you how typical money laundering scheme works and for money laundering scheme to work you have to have a source of dirty money now it's important to realize that this doesn't just come from typical activities like extortion maybe drugs prostitution there's also lots of other reasons that people launder money.So for example corrupt politicians maybe have been given some money by lobbyists they want to hide that income that's definitely a case where they've wanted money if you look at large corporations for example Google and apple they've been keeping their money off shore right now and they've done that for a period of years and they're doing that specifically to avoid paying tax on that income while that's technically legal right now I'm not sure if you could consider that money laundering but if you look at the general.
Huh concepts behind paying taxes and if you look at what the intention was when people created these laws they definitely didn't create them so $1000000000 companies could hide their assets overseas and then not pay their fair share of taxes and the same goes for Donald Trump in 2005 I think he release his tax returns which showed that he paid $0.28 on the dollar in tax which is just something that is really really difficult to understand as an average American.
So we get this dirty money can come from anywhere can come from any source and then once we have that dirty money in order to launder it and become clean money we need to find a legitimate purpose for it and if you've watched the TV show breaking bad you'll know that way and Walter white goes off cooks a bunch of methamphetamine and sells them he has this big pile of cash and they look at each other and say **** what are we gonna do you can't deposit that money straight to a bank.
It's a huge red flag you can't really go out and spend that money on a new house because again it's a giant red flagging you've got no way to explain that income you have to find a way to clean it so in the case of breaking bad they buy a car wash they operate the car wash and then what they do is they makes some of that clean money with the dirty money so the car wash looks to be much more profitable than it actually is the proceeds of that business and then deposited back into their personal accounts and today are just like that the money is clean. Okay so now that we talk about money laundering we see how a typical money laundering scam works or scheme works how does big coin change this and what I find really interesting is I'm gonna show you a few more graphs about money laundering and I think that you'll be able to identify one common element in both of these graphs.
So let's just bring us up to here we have the crime the illicit cash the cash front business which then has to employ bookkeepers accountants it has to have real customers because it has to mix those dirty funds with clean funds then that money gets deposited into a bank the taxes are filed and to dock that money is legal so people are asking how do you launder money with big point let me show you this exact same diagram but let me this time explain what happens when you use bitcoin.
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