Brazilian federal police are trying to launder money from illegal gold mining, Reuters reported. crypto coins He raided a group he said he was using.
Five people were arrested in an operation against health companies that laundered money from illegal gold mining in the northern state of Rondonia on Thursday, according to the report, citing Brazilian federal police.
Illegal Gold Mine Operators In Brazil Set Up Their Own Cryptocurrency To Launder Illegal Assets
Police said the group used its own crypto token to move billions of dollars.
The token, created by one of the group’s front companies, was used to “mask the amounts obtained from illegal gold mining as investments by third parties seeking dividends,” Reuters quoted federal police as saying.
According to the report, a banking analysis by federal police revealed that more than $3 billion moved in the group’s bank accounts between 2019 and 2021.
When considering the cryptocurrency market, regulators are often skeptical that crypto assets are being used for money laundering. However, crypto-asset exchanges apply KYC (know your customer) procedures to ensure their users are not using digital tokens to launder money.
In fact, such money laundering attempts are very difficult to do, as all transactions made in blockchain technology are recorded on the network. In fiat currencies, on the other hand, some experts argue that Blockchain-based currencies are more secure than fiat currencies in this regard, since there is no record system similar to Blockchain.
*Not investment advice.