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Because NFT's have nothing to do with collecting digital trinkets and everything to do with money laundering. The only thing that is remarkable about NFT's is h

by zcw100 5y ago

Because NFT's have nothing to do with collecting digital trinkets and everything to do with money laundering. The only thing that is remarkable about NFT's is how absolutely brazen they're being about it. The only positive is that hopefully it will keep them from screwing around with the housing market that has real life consequences for people although now we're just throwing away electricity rather than empty houses.

SyzygistSix 5y ago
If wealthy people are going to use artwork to launder money, I'm happy with the original artist getting a cut. This already supposedly happens in meatspace, just with the artist making nothing after the original sale and missing out on most of the eventual value.
djoldman 5y ago
If NFT money laundering is: acquire Ethereum with dirty money -> buy NFT's -> sell NFTs for Ethereum -> sell Ethereum for USD -> deposit USD in bank account I fail to understand how that is materially different from: acquire Ethereum with dirty money -> sell Ethereum for USD -> deposit USD in bank account Besides there being more steps with NFTs, I don't understand how it would attract less scrutiny. In both cases, one must acquire Ethereum in the beginning with dirty money. This can be done on a foreign exchange, transfer in the Ethereum to a domestic exchange and sell it for USD. In both cases, large deposits in bank accounts will be flagged by banks for review by the authorities. It's not a very good idea. Arguably, USD stablecoin is a much more efficient method. Just buy them, and sell them off slowly and deposit the USD in ways to avoid scrutiny. This can't be done with Ethereum because of the volatility: you can't wait because your money might lose a ton of value. My 2 cents. I am not a lawyer.
- stanzheng 5y ago
  theres a dimension where an NFT "appreciates" in value and sold at a premium or offset than what was it was originally acquired at. theres also the uncaptured exchanging of hands between bidders overpaying to build an asset bubble. I think its better researched replacing NFT with "Fine Art" and seeing how money laundering in the art world happens [1] [1] https://www.artandobject.com/news/how-money-laundering-works-art-world https://www.artandobject.com/news/how-money-laundering-works...
- hluska 5y ago
  I’m not an expert in money laundering but I’ve been waiting for a cryptocurrency version of the restaurant laundering scam. Essentially criminal A buys a restaurant. Some sales are legit and other sales are just criminal A filling the register and making sales. Police are relatively good at investigating this because ratios between income and expenses are always dramatically off. What if instead of pizza you just mint and buy tokens?

by zcw100 5y ago

SyzygistSix 5y ago

If wealthy people are going to use artwork to launder money, I'm happy with the original artist getting a cut. This already supposedly happens in meatspace, just with the artist making nothing after the original sale and missing out on most of the eventual value.

djoldman 5y ago

If NFT money laundering is: acquire Ethereum with dirty money -> buy NFT's -> sell NFTs for Ethereum -> sell Ethereum for USD -> deposit USD in bank account I fail to understand how that is materially different from: acquire Ethereum with dirty money -> sell Ethereum for USD -> deposit USD in bank account Besides there being more steps with NFTs, I don't understand how it would attract less scrutiny. In both cases, one must acquire Ethereum in the beginning with dirty money. This can be done on a foreign exchange, transfer in the Ethereum to a domestic exchange and sell it for USD. In both cases, large deposits in bank accounts will be flagged by banks for review by the authorities. It's not a very good idea. Arguably, USD stablecoin is a much more efficient method. Just buy them, and sell them off slowly and deposit the USD in ways to avoid scrutiny. This can't be done with Ethereum because of the volatility: you can't wait because your money might lose a ton of value. My 2 cents. I am not a lawyer.

stanzheng 5y ago
theres a dimension where an NFT "appreciates" in value and sold at a premium or offset than what was it was originally acquired at. theres also the uncaptured exchanging of hands between bidders overpaying to build an asset bubble. I think its better researched replacing NFT with "Fine Art" and seeing how money laundering in the art world happens [1] [1] https://www.artandobject.com/news/how-money-laundering-works-art-world https://www.artandobject.com/news/how-money-laundering-works...
hluska 5y ago
I’m not an expert in money laundering but I’ve been waiting for a cryptocurrency version of the restaurant laundering scam. Essentially criminal A buys a restaurant. Some sales are legit and other sales are just criminal A filling the register and making sales. Police are relatively good at investigating this because ratios between income and expenses are always dramatically off. What if instead of pizza you just mint and buy tokens?