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shmeggt t1_j024v60 wrote

Reply to comment by ThisAltDoesNotExist in Binance CEO Facing Possible Money Laundering Charges by habichuelacondulce

While the physical cash has no chain of custody, when making a large purchase or depositing large amounts of cash, the bank is going to need to understand source-of-funds.

This is the hard things about cash... it's hard to spend in large amounts. You really need a bank account when spending a large amount of money.

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ThisAltDoesNotExist t1_j026afr wrote

Which is what I meant by "you just need a convincing story" and then described the most common method of money laundering.

It is also very difficult to spend a large quantity of cryptocurrency.

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shmeggt t1_j027cbi wrote

You don't have to spend the crypto... You just have to launder it, which is far, far easier because of how many cryptos exist.

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ThisAltDoesNotExist t1_j027nn5 wrote

Nonsense. The moment you try to get it into the regular banking system to spend it you face the same questions of origin.

You may as well say you don't need to spend the cash, you can just leave it in a safe.

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shmeggt t1_j028nex wrote

Here's what you do....

"I'm a crypto investor. I trade quite a lot and have been quite successful in doing that. I invested $500 in LaunderCoin which went up by 8,000,000%. I trade a lot looking for the next great coin."

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jtmarshiii t1_j026zp9 wrote

You also have to physically hand it to someone... making law enforcement's job easier.

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