Certified Anti Money Laundering Expert is the only certification in the world which has embedded the Laundering with the digital currencies in its syllabus. In the research report released by Indiaforensic in July 2013, it elaborated the problems at the Liberty Reserve and how this virtual currency was used as the tool of laundering money in the $45 Million ATM Heist. This report Laundering in Cyber World- The Digital Currency Way also mentioned about the Silk Road as the underground black marekt. Not less than a year’s time after the report virtual currency is reeling from a string of crises and the future of the largest digital currency- Bitcoin depends on some of the lawsuites in USA.
After the report, suspicions among law-enforcement officials and regulators deepened that the virtual currency is a haven for money launderers, tax cheats and high-tech pickpockets.
Failure of Bitcoin Exchanges
Mt. Gox halted all customer withdrawals, saying a bug in the underlying software code of bitcoin had allowed hackers to alter a one-time code in transactions. The alteration meant bitcoin recipients could falsely claim they hadn’t been paid. Two other exchanges hit by the same problem, Bitstamp Ltd. of Slovenia and BTC-e of Bulgaria, resumed normal trading after working out a fix with software coders coordinated by the Bitcoin Foundation. Mt. Gox never reopened and filed for bankruptcy. The missing bitcoins represent 7% of the world’s supply. Mr. Karpelès has since said Mt. Gox has 127,000 customers and later found about 25% of the missing bitcoins in a file hosted online.
Bitcoin payment processor in Laundering
As the founder of BitInstant, a popular website that allowed users to buy and sell bitcoin, Mr. Shrem quickly rose to the top of the bitcoin community, amassing a net worth he has valued at $6 million. Until his arrest, he also was vice chairman of the Bitcoin Foundation, a trade organization that promotes the virtual currency with regulators, law enforcement and other groups. Mr. Shrem is charged with participating in a money-laundering conspiracy during most of 2012 that allegedly helped customers of the online black-market site Silk Road use more than $1 million of bitcoin to anonymously purchase everything from narcotics to forged passports.
Bit Coin based black market creator
Ross Ulbricht, the alleged creator of the Silk Road Bitcoin-based black market for drugs was found not guilty of money laundering but the fact can not be disregarded that the Silk Road was the underground market for the drugs and the users of this site purchased the drugs using the bitcoins for anonimity. These incidences show that virtual currencies are being used for the laundering purposes. Though carrying the currency may not be illegal but using it as the tool to convert the cash into the currency or helping the drug dealers may create the problem for the bitcoin advocates.