As a report from the Wall Street Journal suggests, have been washed since 2016, a total of about 88 million US dollars by the use of crypto-exchanges. The particular focus of the Exchange is ShapeShift. Their CEO Erik Voorhees defends against the appearance and accuses the newspaper, the dissemination of FUD.
The Wall Street Journal, one of the most important American daily Newspapers, published on the 28. In September, a report on the role of crypto-exchanges in money-laundering activities. Under the title “How Dirty Money Disappears Into the Black Hole of Cryptocurrency” brings the magazine to a General settlement with the crypto sector. In particular, the crypto-exchanges don’t come off in the analysis.
A total of 2,500 Wallets investigated
In the course of the investigation, the Team of the Wall Street journal examined the deposits of a total of 2,500 Wallets. The selected Wallets were known to be in illegal transactions involved. With the help of the Blockchain-business Elliptic, the Journal was able to track the number of users of the deposits of the Wallets on crypto-exchanges, transfer.
As one of the main recipients of illegally acquired money, the Journal of the Swiss crypto exchange ShapeShift. More than nine million of the total $ 88 million, which have been washed since 2016, will be gone, therefore, about ShapeShift. One reason for this could be that the crypto-exchange allowed until Recently, the anonymous Trading of crypto-currencies. Only in the next week, on 1. October, also occur in ShapeShift KYC Standards in force.
ShapeShift CEO Voorhees defends
Especially the Wall Street Journal highlights the trolls by CEO Erik Voorhees. This had repeatedly spoken out against KYC and AML regulations and the freedom of transactions is emphasized. The Journal draws on these Comments now, in order to underline the fact that money launderers with the crypto-exchange is an easy game.
Voorhees even expressed a little later directly to the against him and ShapeShift criticism. Understandably, he had the accusations not sit up. Instead, he brings, in turn, against the Wall Street Journal, he referred to the article as “poorly researched and misleading”.
2/2 Author cherry-picked data, excluding facts contrary to vilification narrative. $9m figure is less than 0.2% of our volume over the time period. Meanwhile, global money laundering through banks is 2-5%. Op-ed forthcoming.
— Erik Voorhees (@Erik Voorhees) September 28, 2018
On Twitter he posted also a graph that compares the amount of laundered money by ShapeShift with the amount that is washed by the banks. He puts the nine million that should have been washed in the last two years, with 2.7 billion US-Dollar, which are washed through banks in a day.
Even if this comparison is equal at several Points in huge, is the underlying message for all the readers is clear. Specifically, representatives of the traditional financial industry to observe the crypto-sector is still with Argus eyes. According to understandable criticism from Voorhees, the Journal would wash the old money-lyre against crypto-currencies around riding. On the other hand, demonstrated not least by the introduction of KYC in the case of ShapeShift, that the stock market in the past was also not immune from money laundering.