Goldman Sachs is embroiled in the worst scandal in its history, an international billion fraud. As investigators suspect to be the Malaysian Prime Minister Najib Razak is involved. Razak should have to live with the income from the fraud to its extravagant style and the purchase of many luxury goods financed
An admission of guilt of a former Goldman Sachs banker was placed on the Thursday before the office of the attorney General, in the course of which also a second Banker in the bribery and money laundering, was accused of. Likewise, charges were brought against the Malaysian businessman Jho Low, he is said to have stolen part of the money, and issued, to Finance the visits of Celebrities such as actor Leonardo DiCaprio and Model Miranda Kerr.
The expiration of the fraud
Najib Razak founded and managed a “Sovereign Wealth Fund” and transferred with the help of Goldman Sachs, a majority of the money that should flow into the Fund to his personal Bank accounts, and bought a Picasso painting, a diamond necklace and a Birkin bag. He also financed the Hollywood Blockbuster “The Wolf of Wall Street”. Because of the scandal, Najib Razak has lost his Chance at re-election, because the American state find lawyers, that $ 731 million of the missing money flowed to his own Bank accounts.
In an article In the NY Times there is an important Passage in the stands:“ at Least one high-ranking Executive of Goldman Sachs operations in Asia, knew that Goldman the detection of bribery has evaded payments aware of. Against this high-level leadership person, which was not identified in the court documents, brought to the Prosecutor’s office not to press charges. According to three, with the matter people familiar, was this leader Andrea Vella, what is the Co-head of Asian investment banking business of Goldman.
This Passage is important because it illustrates the lack of transparency under which the traditional banking sector suffers. Blockchain systems have, by nature, methods to prevent fraud and the misuse of funds. Opaque systems, like the traditional banking system and are also fraud in the future, the possibility to use and abuse. The transparency that the Blockchain provides, is the basic remedy for such occurrences. In Essence, the 1Malaysia Development Berhad (1MDB) carried out a fraud in a Blockchain Ecosystem would never have been feasible.
A recurring nightmare
However, it is not that Goldman Sachs is involved for the first Time in such shops. The banking giant has been trying for years, with a reputation to restore, the was hit during the financial crisis by the allegations that they made their Profit over the Welfare of their customers. The Bank’s role in expanding Malaysian scandal could prove to be the undoing of all the efforts, to which the Goldman Manager, under took to Goldman in a good light stand.
Even though Goldman Sachs knew that Tim Leissner, a former Goldman investment banker, who has for years courted Mr Low, was the focus of the investigation, seems to be the extent of the indictment of Goldman to have surprised. The investment Bank is not expected that an Executive of its Asian Investment Dept would be involved. Goldman has played his role in the scandal, repeatedly, and explained that they knew that the money was misappropriated from the Fund.
Goldman’s Chairman, Lloyd Blankfein, tried to dismiss the matter as the actions of criminal employees. You can’t control everything what are you doing on your business phones.
A better way in the future
There will always be Criminals who are looking for Ways to break systems. But with a fraud in the amount of $ 750 million in a System to get through, which is built on a Blockchain is simply as good as impossible.
After two years of waiting for justice, was just arrested a man in addition to Tim Leissner, the bankers, the well-known already guilty. Which means that it could still take a few years, until the matter is definitively off the table.
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