More than 3 million euros have been frozen in a foreign account also in cryptocurrency

A new investigation by the Guardia di Finanza in Pescara evokes the world of cryptocurrency, which identified a current account in Lithuania, after investigating the criminal association that was defeated a few months ago by a major international fraud of luxury cars in the European market. This, in essence, was the “laundry” of the illegal rentals.

Here, in fact, in the multi-currency circles of the far south of the Baltic republics, millions of euros end up, illegal profits of a series of tax evasion imposed continuously, from 2015 to 2020, committing a transnational fraud on the European market, with a commercial value of transaction invoices Non-existent purchase and sale of cars with large engines is estimated at 53.5 million euros.

This is how the International Criminal Association investigated the crimes of gross fraud against the state, money laundering, money laundering and fraudulent transfer of values, over the years it has accumulated great loot, destroyed until now, after the Pescara Review Court rejected all appeals, confirming the Confiscation of villas, luxury cars, precious watches, paintings, credit cards and financial resources of more than 6 million euros. Of these, half ended up in a Lithuanian checking account used to trade bitcoin, which has now been frozen by Viam Gial of the Adriatic capital who was working in coordination with the local prosecutor’s office and thanks to the cooperation of foreign guarantee bodies through Eurojust, the Judicial Cooperation Unit of the Federation European.

After all, The virtual abyss of cryptocurrency is now known to offer an alternative aspect to laundered trading, which is often practiced alongside more traditional tools to launder illicit profits internationally. Indeed, virtual money in itself bears typical characteristics of both cash and digital currency; Ensures anonymity, low-risk portability, transferability like the former, immediacy and lower transaction costs like the latter. They are not traded on the web through the intermediation of a central body, such as government banks in general. This is because cryptocurrency is the spearhead of so-called decentralized taxation, where transactions take place peer-to-peer, between equals, between connected users, the same people who validate a virtual money transfer request based on the fees paid (yes you pay more, higher priority will be given to process the transfer), and only after verifying that the wallet from which the virtual money originates is unable.

But why does the crypto world become an excuse to recycle? The answer is that international criminal organizations are the main attraction of the virtual money market: anonymity. Indeed, if it is true that real Bitcoin followers speak more appropriately of pseudo-anonymization, because each transaction, when confirmed, becomes a block of chain, i.e. recorded in some kind of ledger online and in the public domain, then it is also true that the account owner It does not have a name and surname, but it is very difficult to encode an address, a mathematical algorithm. So yes, The object, that is, the transaction, can be traced, but the subject, that is, the agent, is not at all. In fact, it may not exist (in Acrobat’s case) or be connected to a geographic area other than the real one, perhaps by countries that are not at all cooperative in exchanging tax information, or even mask the IP address with the TOR network. (The Onion Router), the key to accessing the deep web.

So if you launder money, Whenever you want to impede the ascertainment of the source of illicit profits, anonymous, borderless and uncensored cryptocurrency transactions present an additional opportunity, compared to traditional methods, to hide the true nature of dirty money, and cybercrime in general.

But this is not enough.

Virtual currencies can create a link between money laundering and fraud. Like? With chain contamination. With dirty real currency, I can pollute the virtual paths, and also by paying bitcoins at physical ATMs, thus getting equally dirty cryptocurrencies, which I can then inflate and finally clean up. This is due to the fact that its high volatility, today, is no longer a disincentive to wash trade, on the contrary; It’s an opportunity to create speculative bubbles that have one outcome: escape with loot. The “rug-pulling” fraud is a symbol in this sense. Those who have enough resources or thousands of fake accounts can buy or pretend to buy large amounts of cryptocurrency, increase their prices and attract additional investors to drain more liquidity, and then run away with money. And cashing out isn’t a problem either: existing cryptocurrencies have doubled. You can navigate through their channels until you reach the most convenient way out, that is, those countries where the exchanges are subject to anti-money laundering obligations, which reinject the cleaned bitcoins into the legal economy, changing them into real currency.

Results? Gross infringement of free competition: In the market there are operators who, through cryptocurrency fraud, are able to finance themselves without resorting to loans, which allows them to be highly competitive, as they can provide goods and services at costs lower than those practiced by the average, just as happened in the circular fraud that It was carried out by the international criminal gang that was discovered by Viam Gial of Pescara. In the meantime, something seems to be moving on the horizon. From May 18, the registry of cryptocurrency operators will be available at the Agents and Brokers Authority. A tangible step forward in regulating the current virtual financial phenomenon and in extending crypto assets to anti-money laundering legislation already insisting on FIAT coins.

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