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- A $5000 bitcoin transfer was discovered by police during a methamphetamine operation, which resulted in a money laundering conviction
- Cash is still the simplest option, and one expert cautioned would-be criminals that Bitcoin isn’t as anonymous as it appears
- Williams was also charged with money laundering in June 2020 after purchasing $26,750 in cash for a Harley-Davidson motorcycle
A $5000 bitcoin transfer was discovered by police during a methamphetamine operation, which resulted in a money laundering conviction. According to experts interested in the subject, however, a surge in underground use of encrypted cash seems improbable. Cash is still the simplest option, and one expert cautioned would-be criminals that Bitcoin isn’t as anonymous as it appears. Rayon Mohi Williams was one of 29 people detained during a methamphetamine investigation that spanned Auckland and Waikato, according to a recent court judgment.
Cryptocurrency is being used to launder money
Police began investigating a well-organized and wealthy drug distribution business in January 2020. According to a recent Court of Appeal judgment, Williams transmitted $5000 to an accomplice as a cryptocurrency transaction demonstration for another person. He was convicted of money laundering as a result of this, but his cryptocurrency wallet was never recovered, so the court had no way of knowing how much he’d acquired or kept.
The judge was convinced that Williams’ wrongdoing was not minor, based on the amount of money he received and disbursed, as well as the precautions he took to conceal his activity. You must locate someone ready to accept [the cryptocurrency] from you, and it is difficult to convert it back into New Zealand dollars, according to the commercial law associate professor.
You’d essentially have to show where you acquired it. If law enforcement authorities identify who is behind a public key, used for identification, the encrypted currency is typically more traceable than cash.
Widespread use of Bitcoin is leading to money laundering activity
However, she believes that if bitcoin usage becomes more widespread in society, it will be used more for criminal purposes. Dr. John Williams of the University of Otago warned would-be criminals that it isn’t as anonymous as they would imagine. Williams is a senior lecturer at a business school that also owns cryptocurrency.
And he wasn’t shocked the authorities hadn’t been able to locate Williams’ wallet. As law enforcement agencies share their methods and techniques in order to remain anonymous, authorities will have more cases to deal with, but they will also have more capable instruments to battle it.
Nonetheless, he claimed, ransomware attacks far outweighed money laundering through bitcoin. Rayon Mohi Williams challenged his two money-laundering accusations, and the Court of Appeal reduced his sentence to ten months of home detention with certain circumstances. Cryptocurrency is another instrument utilized by criminals, according to police, and it is increasingly being used for illicit issues to hide or disguise criminal proceeds.
According to a statement, police will continue to investigate, disrupt, and punish money laundering syndicates and their associates. And, by tracing the money trail, authorities are looking into not only how drugs are imported, but also how they are supported. According to the statement, New Zealand is bolstering its anti-money laundering efforts by collaborating with foreign law enforcement organizations. While it is not unlawful to own cryptocurrencies, it is prohibited to use them to pay for illegal goods or services.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
