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Say I have $1m in dirty money. I buy an NFT for $1, then use the dirty money to ‘buy’ the NFT from myself for $1m (through an anonymous cutout, like a crypto b
by djrogers 6y ago
Say I have $1m in dirty money. I buy an NFT for $1, then use the dirty money to ‘buy’ the NFT from myself for $1m (through an anonymous cutout, like a crypto bank), and now I have a clean $1m.
Bonus points, as now a lot of people think the NFT that my dirty hand still holds is worth $1m!
- fasteddie31003 6y agoWhy use an NFT then? Couldn't any old crypto transaction work for that?
- dagw 6y agoWhen I show up at the bank and want to deposit the $1 million I just got from selling bitcoin, they're going to want to know why someone just transferred $1 million worth of bitcoin to me. NFTs are 'real' enough that my story is plausible, and anonymous enough that investigating it would be very time consuming.
- capableweb 6y agoIt would be anonymous if you used something like Zcash. Now the current craze is happening over Ethereum so it's pseudo-anonymous at best. And for sure many governments have tools for linking accounts and transactions together by now.
- djrogers 6y agoIf I sell BTC for $1m, the IRS/InsertGovAgencyHere will want to know where I got the $1m in BTC from. If I can point to an NFT that I 'sold' (after a dramatic rise in value) then I have a plausible source of that income. That's the purpose of money laundering - to bring ill-gotten gains into the light so they can be used.