[HN Gopher] Binance and CEO admit financial crimes, billions cou...
       ___________________________________________________________________
        
       Binance and CEO admit financial crimes, billions coughed up to US
       govt
        
       Author : LinuxBender
       Score  : 140 points
       Date   : 2023-11-23 14:46 UTC (8 hours ago)
        
 (HTM) web link (www.theregister.com)
 (TXT) w3m dump (www.theregister.com)
        
       | sertbdfgbnfgsd wrote:
       | I've been saying this from day 1, and here it goes again: 99% of
       | the people involved in crypto is a scumbag. And every day that
       | goes by evidence accumulates in my favor.
        
         | wegfawefgawefg wrote:
         | finally, i can be in the 1%
        
         | jandrese wrote:
         | In practice there are only a handful of reasons people actually
         | get into crypto:                 1. Speculation       2.
         | Purchasing illicit items/services       3. Payment for ransom
         | 4. Money laundering       5. Tax evasion       6. Ideological
         | 
         | All of the other reasons barely register. One thing you may
         | note about the list is how many are crimes or are crime
         | adjacent. Even the honest speculators are living in a world
         | that promises unreasonably high returns funded by the criminal
         | activities of the rest of the items. You're probably saying
         | "but ideological reasons doesn't necessary mean crimes", but
         | when you ask them what those ideological reasons are they
         | pretty much always boil down to not paying taxes or evading law
         | enforcement for reasons they don't want to explicitly state.
        
           | deebosong wrote:
           | To elaborate further on the ideological angle:
           | 
           | I've seen folks mention that it's about "the future" in a
           | hand-wavy, abstract, nebulous sense. But their actions
           | demonstrate profiteering, opportunism, and the greater-fool
           | theory in action. Basically, for me, it seemed like all the
           | ideology was intellectual cover (aka rationalizing) for plain
           | ole greed, so they don't have to admit to themselves and
           | others that it has nothing to do with the betterment of
           | humanity and the future, and they just want to get rich
           | quickly. To call it greed would be somewhat unbecoming, and
           | the ideological arguments sounded good enough to assuage any
           | psychological conflicts in oneself.
           | 
           | Might not be a generous interpretation, but if the ideology
           | were indeed at the core of it, I feel like other areas of
           | their lives would reflect said ideologies.
           | 
           | For the record, greed was at the core of my own interest in
           | crypto when I was looking into it, so I could be projecting.
           | Or it could be that said people and myself both experienced
           | this as the driving force behind our interest in crypto as
           | laymen.
        
           | latchkey wrote:
           | One of my favorite responses to this...
           | 
           | https://news.ycombinator.com/item?id=26238410
        
           | orbit7 wrote:
           | I think there is a strong technological interest in crypto,
           | Bitcoin kicked off a triple-entry bookkeeping system so there
           | is a new tech interest and ability to make money in a new
           | financial space, many good communities have arisen out of
           | that.
           | 
           | There is many tech communities buzzing with blockchain
           | related tech and some serious innovation, a lot of
           | interesting new projects from lower cost faster international
           | transactions through to distributed GPU rendering, identity
           | systems, and the possibilities with NFT's have barely got
           | started.
           | 
           | It's also a new asset class for investors with ETF's from
           | BlackRock etc round the corner its evident it's a now a
           | rapidly maturing space, what's happened with Binance is
           | evident that regulation is starting to catch up, but its
           | regulation being so slow and indecisive that has made it easy
           | pickings for illegal activity to occur.
        
             | aeturnum wrote:
             | I think that there are a lot of legitimate reasons to
             | _work_ on developing new distributed ledger tech. There are
             | interesting potential use cases. However, I do think that
             | pessimistic list applies to most people who are _currently
             | investing a substantial amount of their wealth into
             | crypto_. Whatever the potential for the technology, most of
             | the current use isn 't great.
        
           | solomonb wrote:
           | I think you are largely correct but I don't think it was
           | always this way.
           | 
           | When I first heard about Bitcoin the price had just hit $5
           | and everyone was either a hardcore libertarian or they
           | thought the idea of a digital currency was very scifi and
           | exciting. I fell into the latter camp and became increasingly
           | disinterested as the years progressed despite making really
           | good money off a brief mining stint.
        
           | npoc wrote:
           | Learn about Gresham's law, and the reasons gold became
           | valuable (clue: it's not because it's shiny)
        
           | artursapek wrote:
           | This is so cynical it's hilarious. Why is ideological
           | mentioned last? Most people I know who are into crypto (and I
           | know a lot) are into it because they believe in economically
           | sound, censorship resistant currency.
        
         | sputknick wrote:
         | I'll take the other side of this argument and point out: it
         | probably took decades if not centuries to start using paper
         | currency. Will crypto fail? Maybe. But to say that people
         | building an alternate currency to the one we currently have are
         | "scumbag" is a bit much. They are building a financial system
         | that we might one day decide is better than what we currently
         | have available to us. Sure, some are opportunistic bad-actors,
         | but 99%? I don't think thats fair.
        
           | jgilias wrote:
           | Imagine how scammed the first people who had to accept paper
           | instead of gold felt.
        
         | gumballindie wrote:
         | And each one of them is moving over into ai.
        
         | jMyles wrote:
         | I'm confident that I personally know more than 1% of the
         | engineers who contribute to production crypto codebases, and I
         | have to say, I've not met the cohort you describe.
         | 
         | Every ethereum event is filled with the most tolerant,
         | peaceful, healthy, hopeful, lovely, hard-working people.
         | 
         | I love playing these events, because the crowds are always so
         | warm and enthusiastic and so apt so break into sing-along. :-)
         | 
         | Where are all these scumbags?
        
         | suoduandao3 wrote:
         | Right back atcha pal. Crypto trades full transparency for full
         | autonomy. It's hell for authoritarian regimes and corrupt
         | middlemen both. 99% of people against crypto benefit from one
         | of those two.
        
       | pavlov wrote:
       | The magnitude of the crimes that Binance has enabled is being
       | insufficiently reported, IMO.
       | 
       | Bloomberg at least bothered to get the details:
       | 
       | https://www.bloomberg.com/news/articles/2023-11-22/binance-l...
       | 
       | Binance admitted that they enabled funds to be sent to Hamas,
       | ISIS and Al-Qaeda, in addition to Russian-occupied Ukrainian
       | territories, Russian darknets, tens of millions of dollars in
       | ransomware, North Korean hackers, and more than 1,000 child porn
       | transactions.
       | 
       | The most heinous crimes and atrocities in today's world are being
       | funded with cryptocurrency.
       | 
       | At this point, somebody will jump in with: "So what, cash dollars
       | are being used by Hamas too!" -- yes, of course. But moving a
       | million dollars in physical cash is much harder. Crypto companies
       | like Binance have built their entire business models around
       | evading the systems that exist to prevent money laundering and
       | terrorist funding. And the criminals have certainly been paying
       | attention. The entire crypto ecosystem is severely tainted by
       | this association.
        
         | SeanAnderson wrote:
         | This doesn't stop with kicking Binance out of the US, though,
         | right? It's a step in the right direction for making it harder
         | for criminals to access US dollars, but the liquidity of moving
         | crypto around is still there and the ability to cash out into
         | other fiat currencies is still present.
         | 
         | I have no idea how difficult it is to turn varying fiat
         | currencies into dollars, though. Presumably challenging when
         | dealing with large sums and trivial with small sums?
        
         | setgree wrote:
         | The key question for me now is: once you subtract all the
         | plainly unethical transfers, securities-laws-runarounds, pump
         | and dumps, and wash trading, how much of a business is left?
         | Secondarily, is that 'total remaining market cap' larger or
         | smaller than the total value of VC funding in the ecosystem?
        
           | seydor wrote:
           | Binance had 4.17 trillion trading volume in the past 7 days
        
             | cowpig wrote:
             | I could generate $4.17 trillion in trading volume with
             | myself if the cost of a transaction is updating a row in a
             | database. This statistic doesn't mean anything in isolation
        
               | dymk wrote:
               | Well, to everybody else, trading volume means between
               | different entities, so your loophole probably isn't all
               | that relevant
        
               | Detrytus wrote:
               | What if you own both entities? And you also own an
               | exchange where the trading happens, so you give them both
               | special Black Friday deal: 0 transaction cost for the
               | next 12 months.
        
               | BolexNOLA wrote:
               | I don't really mess with crypto anymore, but back when I
               | did, literally every transaction I ever made was with
               | myself. I literally never spent any on a good or service.
        
               | artursapek wrote:
               | What you're describing is called wash trading.
        
               | 1270018080 wrote:
               | Which was 99.9% of the NFT market. I wonder how much of
               | it is the crypto market. Probably not much lower.
        
             | MikeDelta wrote:
             | I read that exchanges inflate these numbers in different
             | ways, so it can be very misleading.
             | 
             | Apparently sometimes this goes very wrong [0].
             | 
             | [0] https://news.ycombinator.com/item?id=36610006
        
             | killingtime74 wrote:
             | If you and me traded 1 dollar between us 4.17 trillion
             | times (all electronic, we could probably do more), we would
             | have the same trading volume.
        
             | jahnu wrote:
             | And what part of the economy did that facilitate?
        
             | evdubs wrote:
             | The SEC lawsuit, which alleges (among other things) Binance
             | as having lots of wash trading on their platform, still
             | hasn't been resolved.
             | 
             | Using statistical methods, for BTC, ETH, LTC, and XRP,
             | Binance wash trading was estimated at >50%.
             | 
             | https://www.nber.org/papers/w30783
             | 
             | You can see other pairs on Binance that are clearly more.
             | For example, GAS is the 9th "most traded" token on Binance.
             | It claims ~$100M in daily volume, but there's not even $1M
             | in liquidity between +/- 2% of spot. That is almost
             | certainly all wash trading.
             | 
             | https://www.coingecko.com/en/exchanges/binance
             | 
             | Binance volume numbers are not believable.
        
             | infecto wrote:
             | Trading volume should not be confused with real
             | transactions.
        
           | TacticalCoder wrote:
           | > ... once you subtract all the plainly unethical transfers,
           | securities-laws-runarounds, pump and dumps, and wash trading,
           | how much of a business is left?
           | 
           | Coinbase, a HN unicorn, probably knows? Their KYC/AML is top
           | notch (which is a PITA for honest people btw). They know how
           | many USD actually entered and whom send them. They _may_ have
           | had insiders accused of pump and dumping but AFAIK Coinbase
           | hasn 't been accused of pump and dump.
           | 
           | Coinbase has now been chosen by BlackRock to keep the Bitcoin
           | backing the BlackRock ETF in custody: I take it if Bitcoin
           | ETFs are accepted, and if BlackRock and Amundi and I don't
           | now who else start launching Bitcoin ETF, we may begin to see
           | what's left?
           | 
           | Someone else who may know: that weird dude who is behind
           | MSTR: he basically bought 158 000 Bitcoins at an average
           | price of $29 K USD and he plans to buy much more. (if you
           | want to long or short Bitcoin, you can do so on the MSTR
           | stock for it basically follows the ups and downs of Bitcoin).
           | 
           | What's left, for all we know, could be much more than what's
           | already in (I've got no crystall ball though).
           | 
           | The one thing that I'm sure of is that it's not _all_
           | fraudulent.
           | 
           | For example an estimated 25% of all people in argentina have
           | cryptocurrencies: I doubt one person out of every four there
           | is a criminal!?
           | 
           | Switzerland: if there's one country where its citizens really
           | don't strike me as criminals it's Switzerland. 20%+ people
           | owning cryptocurrencies there.
           | 
           | I can understand the "there are no use cases besides
           | speculation" argument.
           | 
           | But I cannot understand the "all the people using
           | cryptocurrencies are criminal" one.
           | 
           | When you've got several countries in the world where at least
           | one out of every five person did at least try
           | cryptocurrencies, there _is_ something.
        
         | yieldcrv wrote:
         | _Everyone_ has been paying attention: the world of capital
         | controls has been gone for 10 years and we let public figures
         | play with themselves proclaiming the opposite. While they
         | already knew that transaction whitelisting was a waste of
         | taxpayer dollars and an impossible waste of private sector
         | resources to do.
         | 
         | What you're actually seeing is that _everyone_ is using crypto
         | as a public utility. Everyone as in all types of parties.
         | 
         | Crypto exchanges are not actually capable of pretending to play
         | this game. Third party software has been created to attempt to
         | flag transactions with an obvious sanctioned source, but the
         | user unlinking that source is very easy. Binance reduced
         | friction so much that users didn't bother doing that apparently
         | either. Binance's aspirations grew so big that they couldnt be
         | just a website and server not incorporated anywhere. But
         | basically every other centralized custodial exchange is the
         | same.
         | 
         | It is simply not possible to play along with the state's
         | deprecated path of policing transactions. The most compliant
         | exchanges will simply automate mountains of paperwork to
         | FinCEN, the suspicious activity reports that the GAO points out
         | are not read at all. Binance is in trouble for simply not doing
         | that because the government doesnt really have a tool to police
         | this either.
         | 
         | Many people have made this observation. Many people that made
         | this observation are 10 years older now, have seen their own
         | state fall apart and provided a convenience to the governance
         | organization and people in that area. That's how crypto
         | propagates. The concept just waits until the human discovers a
         | friction, and then flips them and all the nearest humans like
         | nodes in a graph.
         | 
         | This understanding increases confidence in crypto from people
         | that matter more than the pearl clutching people worried about
         | "but criminals!" that don't matter, as it is predictable how
         | more capital enters crypto from all sources around the world
         | over time.
         | 
         | Its all quite relative, are we supposed to care that a Chinese
         | citizen circumvented China's capital control using crypto. Is a
         | Chinese citizen supposed to care that someone on the US OFAC
         | list can access international finance? in each country's sphere
         | both are "criminals", but are they? Don't we value the freedom
         | of the Chinese person escaping oppressive capital controls of
         | their administration? Crypto supersedes this concept and
         | debate, deprecating the need to debate it at all, capital
         | flows.
         | 
         | These kind of court cases are instruction manuals to everyone
         | that was on the fence. People that didn't have an example of
         | anyone using crypto for goods and services or converting it to
         | local currency now do. All they see is the exchange getting in
         | trouble, nothing changing, and everyone _including people on
         | the OFAC list_ not getting in trouble or their assets frozen.
         | More nodes flipped.
        
           | lolbert4 wrote:
           | lol no
        
           | hirako2000 wrote:
           | + the SEC pretty much acting like a mob engaging in grand
           | scale extorsion. The claim and demand for its chairman to
           | step down was recently made by a congressman, not some crypto
           | fanatic.
        
             | yieldcrv wrote:
             | the aggregate direction definitely is not the state trying
             | to stop crypto commerce
             | 
             | so love to see Congress trying to excise these unproductive
             | elements of the government out while harmonizing business
             | practices
        
           | costco wrote:
           | Any ideas why Binance didn't file a single SAR? Especially
           | because they were hiring all these compliance people, ex
           | prosecutors, ex FBI agents, etc so surely it would've come
           | up. I'm surprised they didn't just game the system and file a
           | bunch of useless ones.
        
             | yieldcrv wrote:
             | why? they operate in many countries and the US wanted
             | special treatment and to be paid attention to. its a hubris
             | that is ingrained in US culture that isn't prioritized by
             | people that dont think about it.
             | 
             | they tried to firewall off the US with the Binance.us
             | entity but that wasnt good enough
             | 
             | so now they see the best way to operate in the US without
             | an impending problem is to kickback $4bn and sentencing the
             | front man, this removes ongoing uncertainty in that market
             | and _improved_ access to all that capital
             | 
             | many other countries have random paperwork nuances too,
             | they just matter even less
             | 
             | binance tried to stack the deck with connected people, but
             | it wasnt taking advice from them, they were just there and
             | isolated with fat paychecks and BNB token grants. I think
             | they just didnt think about SARs. They werent worried about
             | self incrimination, they just didnt do it
        
         | achow wrote:
         | https://archive.is/YvkhM
        
         | wizardforhire wrote:
         | ^this.
         | 
         | What good are sanctions if you can easily get around them?
         | 
         | Why are there sanctions? What's the objective of sanctions? ...
         | What happens if sanctions fail? Whats the worst thing to
         | happen? ...
        
         | baybal2 wrote:
         | > At this point, somebody will jump in with
         | 
         | At this point you need to jump up and point to:
         | 
         | 1. Ordinary banks are not sued for absolutely the same thing,
         | which probably occurs to much bigger extent in major banks
         | which pass many times more transactions than Binance
         | 
         | 2. Forget about Russian darknets, _Russian mafia lives in
         | London, and New York in the open_ to complete disregard of the
         | same financial regulators.
         | 
         | 3. It's practically impossible to catch people who can fake, or
         | buy a passport to do small scale money laundering, but forget
         | about the small fish.
         | 
         | BILLIONS of Russian money gets laundered through biggest US
         | banks every day completely legally, through schemes known to
         | all big banks, and financial regulators for decades.
        
           | FireBeyond wrote:
           | > Ordinary banks are not sued for absolutely the same thing,
           | which probably occurs to much bigger extent in major banks
           | which pass many times more transactions than Binance
           | 
           | No? https://www.investopedia.com/stock-
           | analysis/2013/investing-n...
           | 
           | https://www.justice.gov/opa/pr/jpmorgan-chase-co-agrees-
           | pay-...
           | 
           | https://www.theguardian.com/world/2011/apr/03/us-bank-
           | mexico...
        
         | seydor wrote:
         | > moving a million dollars in physical cash
         | 
         | who says it's physical?
        
         | kjkjadksj wrote:
         | The big question is if these things would be possible without
         | crypto existing. History suggests they are, so I'm not sure if
         | crypto really makes anything possible on that front that wasn't
         | before. Some of the largest terrorist attacks and most
         | entrenched armed resistance movements took place pre crypto. I
         | don't think access to cryptocurrency would have made the
         | vietcong significantly more effective for example.
        
           | infecto wrote:
           | No, the big question is what the overall percentage of dollar
           | volume is being used for these crimes. Comparing to history
           | is silly.
           | 
           | I would also assume that cryptocurrency makes moving money
           | for crimes vastly easier. And I would also suspect a large
           | amount of volume of transactions are illegal or gray in
           | nature.
        
           | crazygringo wrote:
           | It's not about a binary _possibility_ of yes /no, it's about
           | _ease and frequency_.
           | 
           | Crypto can mean an attack can be funded with 50x more money
           | than had been possible previously, or 20 organizations can be
           | funded where previously only 2 could have worked out the
           | logistics.
           | 
           | Trying to frame this as a binary possible/impossible is the
           | wrong lens.
        
         | fallingknife wrote:
         | I'll jump in with so what, banks are doing it too.
         | https://www.investopedia.com/stock-analysis/2013/investing-n...
         | 
         | Moving a million dollars by wiring it from your HSBC account is
         | actually much easier than doing it with crypto.
         | 
         | edit: and in the HSBC case the CEO didn't even lose his job!
        
           | infecto wrote:
           | Much easier, maybe? But also much easier to track. And at
           | least to some larger degree banks follow KYC.
        
             | bordercases wrote:
             | > But also much easier to track
             | 
             | Why is this true?
        
               | infecto wrote:
               | Banks in the US must follow kyc and other forms of
               | reporting.
        
             | suoduandao3 wrote:
             | *Much easier to stop, much harder to track. A bank doesn't
             | have a publicly auditable ledger the way crypto does, it
             | can only be traced with the assent of the bank and their
             | policies vary.
             | 
             | The distinction matters.
        
               | infecto wrote:
               | Yes because we see so much value from a public auditable
               | log. It's much easier to send crypto to a mixer and
               | conceal origin/destination and much easier for the
               | average Joe to do it.
        
               | omarfarooq wrote:
               | The very origin of funds being from a mixer taints it.
        
           | brucethemoose2 wrote:
           | I think these groups would be doing it with banks (like they
           | did before?) instead of crypto if banks were much easier.
        
             | hirako2000 wrote:
             | You imply they migrated to use crypto and stopped using
             | traditional banking. No evidence that it is the case.
             | 
             | Some criminals may have easier access to crypto facilities
             | than banks hence activity, or cost is lower that way for
             | the initiated, yes. It doesn't mean volumes of teinted
             | activities is anywhere as big via crypto than it is via
             | fiat.
             | 
             | Common sense could take a guess, but there can't be much
             | certainty as illegal activities happen aren't made in plain
             | sight in either route.
        
         | jMyles wrote:
         | > The entire crypto ecosystem is severely tainted by this
         | association.
         | 
         | I don't understand the impetus to view it as a taint.
         | 
         | The fact that crypto can be used for things that the state
         | wishes to prohibit is strong evidence that it is effective and
         | politically neutral - and those are exactly the features it is
         | striving for.
         | 
         | The desire to stamp out war and terrorism and violence is
         | laudable, and I certainly agree on the importance of decreasing
         | the influence of the groups you suggest. But attempting this by
         | creating a complex, closed-source, global, locked down monetary
         | and economic system has collateral damage - in the form of easy
         | money available for imperial ambition - that is worse than the
         | problem it is purporting to solve.
         | 
         | Surely if we all believe in the basic decency of people, and of
         | our universal desire for peace and understanding, we can
         | deprecate institutions of terror by means other than handing
         | over limitless economic power to the state?
        
           | ttul wrote:
           | In a democracy, those limitless powers are limited by voters.
           | The government can only pass laws and implement regulations
           | that are acceptable to a democratic public. To the extent
           | that voters want to move their money freely around the world,
           | they also want policies that prevent the transfer of money to
           | terrorists or child molesters. These powers are not limitless
           | at all. They are limited through democracy.
           | 
           | Crypto is therefore a way to work around the wishes of the
           | majority of others. That's anti-democratic. It's not freedom
           | so much as it is tyranny.
        
             | rubyfan wrote:
             | This is the best argument I've heard to date for regulation
             | in a democracy.
        
             | mattrighetti wrote:
             | Everything that involves privacy could potentially go
             | around the _wishes of the majority_ , yet everyone has the
             | right to it (so they say) which is guaranteed by democratic
             | laws nowadays.
             | 
             | We all know, for example, that terrorist groups plan their
             | attacks on platforms that use e2e encryption, are you
             | suggesting to end privacy for all to be able to catch a
             | bunch of terrorists? Because there is no gray area in all
             | of this, you either have it or you don't.
        
             | jMyles wrote:
             | So it all boils down to the sole franchise of the vote as
             | the only way to bring societal change.
             | 
             | That's not something that the information age is going to
             | afford, and I thought that - pause by threads like this
             | notwithstanding - the foundations of hacking and cyperspace
             | independence were meant as a surface on which to build
             | something better.
             | 
             | I don't think that the world's poor and disenfranchised can
             | afford to wait around for generation after generation while
             | we try to figure out how to inspire change in international
             | finance by using only the debilitated and purely symbolic
             | tactic of voting.
             | 
             | > In a democracy, those limitless powers are limited by
             | voters
             | 
             | I just want to point out that, empirically speaking - if
             | you hold the US and Europe states to be democratic
             | institutions - this is observably false. Voting has not
             | achieved limitations unto halting empire, predation, and
             | extraction.
        
         | dakial1 wrote:
         | I always wondered why the US didn't crack harder on these
         | exchanges (and crypto in general) and my conclusion is that the
         | government has a second agenda for these.
         | 
         | Either because they can trace the money path more easily (than
         | physical money) or that they are using it for their own covert
         | ops.
        
           | anonporridge wrote:
           | That's why the US Naval Research Lab made Tor open source.
        
         | 6stringmerc wrote:
         | The only problem is the right hands aren't getting paid off.
         | 
         | The Reinsurance Industry doesn't work in Lloyds, Macau,
         | basically a PO Box in the Caribbean because they're moving
         | millions and billions of dollars FOR CHARITY.
        
         | 0ckpuppet wrote:
         | So Binance didn't commit the crimes? The were just a conduit
         | for funds between criminals? Kind of like the bank branches in
         | Miami FLA that used to bank for drug dealers?
        
         | thriftwy wrote:
         | > Russian-occupied Ukrainian territories
         | 
         | Regular Russian credit and debit cards++ now work there, thanks
         | to the magic of NSPK. I don't think Crypto had any significant
         | market share there.
         | 
         | ++ Including the ones which were previously branded MasterCard
         | and Visa, these no longer work internationally obviously, but
         | domestically they didn't skip a beat thanks to aforementioned
         | NSPK
        
         | TacticalCoder wrote:
         | > The most heinous crimes and atrocities in today's world are
         | being funded with cryptocurrency.
         | 
         | Just for kicks: according to several sources (IMF, CIA world
         | factbook, UN, ...), the percentage of the _world_ 's GDP tied
         | to criminal activities is 2% to 5%.
         | 
         | 2% to 5% of the entire world's GDP. We're in a $100 trillion+
         | world GDP.
         | 
         | So 2 to 5 _trillion_ USD are tied to criminal activities.
         | 
         | The most heinous crimes and atrocities in today's world are,
         | sadly, not very different from the most heinous crimes and
         | atrocities from 15 years ago.
         | 
         | And 15 years ago they had _nothing_ to do with
         | cryptocurrencies.
         | 
         | There's no way to launder 2 to 5 trillion using
         | cryptocurrencies. These amount are just way too big.
         | 
         | > But moving a million dollars in physical cash is much harder.
         | 
         | A million? Criminals have to move 2 to 5 _trillion_ USD yearly.
         | Cryptocurrencies are insignificant and helpless here: the
         | amounts are way too big.
         | 
         | Moreover most cryptocurrencies uses aren't fraudulent (you have
         | to be dumb to leave tracks in Bitcoin or Ethereum public
         | ledgers, as shown by TFA once again) and most crimes do not
         | involve cryptocurrencies.
         | 
         | What about priorities? As in: going after the actual crimes
         | instead of a totally insignificant source of funding of said
         | criminals?
         | 
         | 2 to 5 trillions, yearly, tied to criminal activities. Ponder
         | _that_.
        
           | eastbound wrote:
           | If 90% of those trillions go through cryptocurrency
           | platforms, wildly justifies closing them down. Or at least
           | implement drastic Know-Your-Customer rules. But at the same
           | time, if those platforms are also only used by people who
           | bypass taxes, then there is no legit usage left for those
           | platforms. Might as well leave them open and investigate each
           | customer.
        
             | MacsHeadroom wrote:
             | 90% of those trillions go through a combination of cash,
             | Wells Fargo, and JP Morgan Chase.
        
           | pavlov wrote:
           | A lot of crime is obviously very local. The 2-5% of GDP
           | number is irrelevant in this context.
           | 
           |  _> "What about priorities?"_
           | 
           | Yeah, whataboutism is the primary line of defense for crypto.
           | 
           | It's possible to do multiple things at once. If we shut down
           | this environmental disaster of a virtual casino that's used
           | primarily by the criminals, it won't take away anything from
           | all the other efforts to fight crime.
        
         | orwin wrote:
         | > But moving a million dollars in physical cash is much harder.
         | 
         | I mean, Tzahal moved 40 millions a month from Qatar directly to
         | Hamas-controlled checkpoints for years, so i guess it depends.
        
         | 1vuio0pswjnm7 wrote:
         | Similar story:
         | 
         | Cash App
         | 
         | https://hindenburgresearch.com/block/
        
       | oldjim69 wrote:
       | Ban crypto. Wrap the whole thing up globally. It was a bad idea
       | allowed to run on for too long. Time to stop the music.
        
         | monero-xmr wrote:
         | Luckily you can't outlaw math!
        
           | quenix wrote:
           | Yeah but you can outlaw specific uses of it. Not saying I
           | agree with it but crypto can definitely be made illegal.
        
             | aaomidi wrote:
             | Getting rid of exchanges would absolutely destroy the value
             | of crypto.
        
               | latchkey wrote:
               | Exchanges and lending/borrowing markets have already
               | moved to be decentralized.
               | 
               | I think what you're thinking is the ability to convert
               | fiat to crypto. If you got rid of that, it would just
               | move more underground and into the black money markets.
        
             | latchkey wrote:
             | Should we also ban private communication too?
             | 
             | To be clear, we don't get to choose which parts of math we
             | ban and which parts we don't.
        
               | phowat wrote:
               | We most certainly do get to choose if we want to. Why not
               | ?
        
               | latchkey wrote:
               | Because it doesn't work out like you think it would.
               | Those of us who have been on the internet a long time
               | remember pre-1999 days.
               | 
               | Banning or preventing people from using math only
               | empowers other countries that develop it on their own.
               | 
               | https://www.csis.org/analysis/end-export-controls
        
               | suoduandao3 wrote:
               | I'm sure the anti-crypto crowd would like nothing better.
        
           | Patrol8394 wrote:
           | Yes, but in majority of cases you still need some legal
           | entity that can convert crypto to fiat so you can actually
           | buy stuff with real money. Would be enough to forbid that and
           | crypto is pretty much done.
        
             | npoc wrote:
             | You called fiat "real money"? That's where you're wrong.
        
               | burnte wrote:
               | You're right, it's ALL fiat money. All money that has
               | ever existed was fiat money, from shells and dollars to
               | bitcoins and xbox points. IF it doesn't have INHERENT
               | value as food, fuel, etc, then it's a fiat currency, it
               | has value because we declare it to be so. Cryptocoins are
               | the ultimate fiat because they don't even really exist.
        
           | phoe-krk wrote:
           | You can outlaw exchanging math for dollars, though.
        
           | jjtheblunt wrote:
           | i've read countless things you've commented, usually our
           | interests diverge, but this one made me silently think
           | "exactly!". well done!
        
         | mrkramer wrote:
         | Crypto turned exactly opposite of what Satoshi wanted....he or
         | they wanted transparent, mathematically (cryptographically)
         | proven, decentralized open ledger transactions, not this sh*t
         | show of fraud and anarchy.
        
           | jgilias wrote:
           | How do you know what Satoshi wanted? For all we know Satoshi
           | might be Paul Le Roux making a way to move value for his
           | 'business endeavors'
        
             | mrkramer wrote:
             | Just read white paper....Satoshi was legit; Satoshi was
             | most probably an academic and a business man (I would say
             | gambling industry) who wanted to eliminate fraud and double
             | spending in the digital world. No drugs, no this wild
             | anarchy. He wanted decentralized digital cash, that's all.
        
               | jgilias wrote:
               | And that's exactly what Bitcoin is. I don't think someone
               | with his mental faculties would have been naive enough to
               | not realize how it could and would be used.
        
               | scottLobster wrote:
               | You been following OpenAI drama? Details are still coming
               | out, but so far it sounds like the textbook case for very
               | smart but naive idealists not having a clue as to how
               | people or power work.
               | 
               | For example, Ilya Sutskever was apparently at the helm of
               | the now-aborted coup. Look at any picture of him. The guy
               | fancies himself a leader of a corporate coup but lacks
               | the social awareness to shave the ugly scraggly remains
               | of hair off the front of his balding head. Nothing wrong
               | with being bald, but you can at least tidy up your
               | hairline and not be intentionally ugly. Appearances
               | matter, particularly in a public-facing leadership role.
               | Even SBF was smart enough to turn his dishevelment into
               | part of his marketing. Ilya lacks the personality to pull
               | such a thing off, and strikes me as the kind of guy who
               | just doesn't expect to be judged for his appearance, and
               | if someone did he would probably make some moral
               | statement about judging books by their cover. He would be
               | technically correct and completely ineffective, just like
               | his coup attempt.
        
               | milutinovici wrote:
               | No it isn't. Cryptocurrencies are not currencies at all,
               | because they are all deflationary. More fitting name
               | would be crypto assets.
        
         | suoduandao3 wrote:
         | What, and trust the people who have been doing QE for half my
         | life with the soundness of my medium of exchange? The same
         | people who froze the bank accounts of peaceful protestors in my
         | capitol city last year?
         | 
         | I'll abandon crypto when it becomes the second-best alternative
         | to a state-controlled money supply. The shenanigans of the
         | Davos crowd are becoming too weird to do otherwise.
        
         | ttul wrote:
         | I recall having a conversation in about 2016 with a lawyer who
         | was looking into crypto for potential opportunities. After a
         | thorough analysis, he said, "In a few years, all these people
         | will be in jail."
         | 
         | He was right.
        
           | capableweb wrote:
           | Except it's 2023, and almost no people who've dealt with
           | cryptocurrency is in jail. A few notable exceptions exists,
           | but you don't exactly go to jail for sending 0.1 Bitcoin
           | around.
        
         | thriftwy wrote:
         | > globally
         | 
         | There is no longer such thing in 2023.
         | 
         | Try to do anything "globally" and get ridiculed out by China
         | and Russia. Rest of the team being AFK.
         | 
         | That's especially significant in light of pretending there's a
         | "global" climate change fight going on.
        
       | ChrisArchitect wrote:
       | Lots of opinions over here:
       | https://news.ycombinator.com/item?id=38366729
        
       | fredgrott wrote:
       | Note what has not really got attention yet, except in a Jason
       | Calacanis podcast. Several VC firms in one specific US state were
       | passing around instructions on how to do pump and dump schemes on
       | these exchanges...the exchange mention was FTX.
       | 
       | This is the tip of what is coming as far as US govt
       | investigations and court cases. Investor wise what are the
       | compliant safe exchanges? Anyone? Exactly, no one has any idea as
       | of yet and that should scare all of us who want to use crypto.
        
       | timetraveller26 wrote:
       | Is this good for Bitcoin? /s
        
       | mrkramer wrote:
       | They already pleaded guilty? $4bn fine? and CEO will be let
       | free?! At least Binance is not allowed to operate in US as far as
       | I remember. I told years ago that DOJ is coming for them because
       | they are unregistered bucket shop. And Binance thought US is
       | gonna stop at FTX.
        
       | m3kw9 wrote:
       | Is not they crypto is bad itself, but it creates incentive for
       | people to be bad. Anonymous transfers? Issuing tokens like they
       | are stock assets? Buy and sell the token to bid up prices and
       | volume? These are clear and easy use cases.
        
       | d--b wrote:
       | No one's going to jail?
       | 
       | Zhao's worth 10bn and is asked to pay 150m?
       | 
       | Binance pays 10bn while it is still worth 36bn?
       | 
       | I am shocked. This clearly sends the message that if you make
       | money fast enough, you'll get away with anything...
        
         | readyplayernull wrote:
         | Just like the war on drugs it's all a huge legal drag net to
         | grab the money from international investors.
        
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