4 ms·

Its a money laundering machine.. the oligarch invest dirty money into it, they buy equipment from other oligarch conglomerate companies, washing the money in th

Its a money laundering machine.. the oligarch invest dirty money into it, they buy equipment from other oligarch conglomerate companies, washing the money in the process. Just build your dream project there, and then take it with you. Its basically a mafiosi incubator and the software is decoration and they do not recognize the value of it missing or ever having existed. Could be other things to. Empty houses in the middle of L.A or NY. Large Resource storages or car traders, dealing in circles. Just make sure, there is no paper trail showing that you knew.

rob74 4y ago
Maybe? But then why go through the "bankrupt -> saved in last minute" cycle several times and generate unwanted attention? I'm not an expert of course, but I think if you want to launder money, you should do it as quietly and inconspicuously as possible...
- raverbashing 4y ago
  It's probably not officially bankrupt, it's "almost bankrupt".
  - tluyben2 4y ago
    Looks more realistic like that I think: startups are supposed to struggle so doing dips of almost bankrupt seems smart really.
triceratops 4y ago
Can you explain? "Money laundering" businesses are cash businesses. If the money is already in the legitimate banking system it doesn't need to be laundered, even if it's from an "oligarch". How does this help? As someone below commented, it seems more likely that the VCs are stealing from their investors.
- wjnc 4y ago
  The world is more complex than that. Things like sanctions and countries (not) fully implementing the sanctions create a world in which the transport of sanctioned ‘money’ (or money owned by sanctioned people) from place X to Y is only possible via constructions as the one hinted on here. Dirty money is not always cash. Even bank held funds can be dirty enough to require cleaning.
  - triceratops 4y ago
    Good point, thank you for helping me understand.
  - bombcar 4y ago
    Yep it may be entirely illegal for a foreign entity to buy fifty million dollars worth of brand new excavators, but entirely legal for them to invest fifty million in crappy startups that burn money buying weird things like excavators.
- bobkazamakis 4y ago
  ...They're cash businesses when you're cleaning cash - drugs, prostitution, etc Do you think people are bringing briefcases of cash on the scale of that many millions to a nail salon?
  - triceratops 4y ago
    There are other ways of cleaning bulk cash. Buying real estate in developing countries, for instance. I just thought that once the money is in the legit banking system, as it would have to be for a startup to accept it as funding, it's clean enough. I hadn't considered sanctions though.
- cannaceo 4y ago
  Laundry isn't always cash. Sometimes you've stolen funds from a government or through a banking scam. That money needs to travel through other businesses to be effectively cleaned. For example, say you were in charge of a private equity fund with a close overlap of executives with a government bank. When investments go well you put them on the PE funds books. When they go poorly you put them on the bank's books. The bank gets a few government bailouts in the process. You now have billions in dirty funds in your PE fund that need to be laundered through investments. A few additional degrees of separation here can be very useful. I've seen this exact situation play out and met some of these guys while trying to do business in Africa.
cannaceo 4y ago
Yep. I've seen this model many times in my industry(cannabis). You can coast for a long time in this position. Consider asking to go remote, sit on payroll, and getting another job as well. No harm no foul.

rob74 4y ago

Maybe? But then why go through the "bankrupt -> saved in last minute" cycle several times and generate unwanted attention? I'm not an expert of course, but I think if you want to launder money, you should do it as quietly and inconspicuously as possible...

raverbashing 4y ago
It's probably not officially bankrupt, it's "almost bankrupt".
- tluyben2 4y ago
  Looks more realistic like that I think: startups are supposed to struggle so doing dips of almost bankrupt seems smart really.

triceratops 4y ago

Can you explain? "Money laundering" businesses are cash businesses. If the money is already in the legitimate banking system it doesn't need to be laundered, even if it's from an "oligarch". How does this help? As someone below commented, it seems more likely that the VCs are stealing from their investors.

wjnc 4y ago
The world is more complex than that. Things like sanctions and countries (not) fully implementing the sanctions create a world in which the transport of sanctioned ‘money’ (or money owned by sanctioned people) from place X to Y is only possible via constructions as the one hinted on here. Dirty money is not always cash. Even bank held funds can be dirty enough to require cleaning.
- triceratops 4y ago
  Good point, thank you for helping me understand.
- bombcar 4y ago
  Yep it may be entirely illegal for a foreign entity to buy fifty million dollars worth of brand new excavators, but entirely legal for them to invest fifty million in crappy startups that burn money buying weird things like excavators.
bobkazamakis 4y ago
...They're cash businesses when you're cleaning cash - drugs, prostitution, etc Do you think people are bringing briefcases of cash on the scale of that many millions to a nail salon?
- triceratops 4y ago
  There are other ways of cleaning bulk cash. Buying real estate in developing countries, for instance. I just thought that once the money is in the legit banking system, as it would have to be for a startup to accept it as funding, it's clean enough. I hadn't considered sanctions though.
cannaceo 4y ago
Laundry isn't always cash. Sometimes you've stolen funds from a government or through a banking scam. That money needs to travel through other businesses to be effectively cleaned. For example, say you were in charge of a private equity fund with a close overlap of executives with a government bank. When investments go well you put them on the PE funds books. When they go poorly you put them on the bank's books. The bank gets a few government bailouts in the process. You now have billions in dirty funds in your PE fund that need to be laundered through investments. A few additional degrees of separation here can be very useful. I've seen this exact situation play out and met some of these guys while trying to do business in Africa.

cannaceo 4y ago

Yep. I've seen this model many times in my industry(cannabis). You can coast for a long time in this position. Consider asking to go remote, sit on payroll, and getting another job as well. No harm no foul.