The cryptocurrency industry attracts people from all strides of life. Some want to save up some money for a rainy day. Others want to get rich quick at all costs. One man in Dundee, Ireland is wanted for a major money laundering scheme linked to Bitcoin. This investigation has been ongoing for some time now.
The Major Bitcoin Money Laundering Scheme
An initial inquiry into the habits of Dale Pearson commenced in early 2018. This individual is a person of interest in a money laundering investigation. His tainted funds passed through various banks in different countries. Eventually, it also found its way to Bitcoin, according to the Evening Telegraph. The world’s leading cryptocurrency is often associated with illegal activities. In this case, there may be something to those rumors.
The habits of Pearson involve duping companies through the United Kingdom. By obtaining a hefty mortgage he successfully bought two properties in Dundee. This was all made possible thanks to his illegal operation. Pearson is also responsible for laundering money through shops and outlets across Europe. In the end, the total tally sits at 1 million GBP.
Furthermore, charges against Pearson include supply various drugs and possession of narcotics for distribution. His first court hearing occurred in April and has remained in custody ever since. It now seems the situation has taken another turn. He will face the Dundee Sheriff Court on December 18. Whether or not there will be a jail sentence, is unclear at this time.
The Transparent Nature of Bitcoin
Laundering money often requires anonymity and privacy. With Bitcoin, neither of those aspects are present. The native transparency of the Bitcoin network makes it nearly impossible to move funds without alerting someone. Especially with so many blockchain analysis companies active today, any dubious transfer is flagged immediately.
Even though Bitcoin is associated with crime, it isn’t a good tool. Instead, criminals usually have more success by relying on traditional finance. It is very difficult to convert Bitcoin to fiat currency in an anonymous manner. All service providers perform thorough KYC checks. This also allows exchanges to link strange activity to a real-world identity.
To date, few reports confirm there is a money laundering scheme involving Bitcoin. Despite its current value, Bitcoin isn’t liquid enough to facilitate large-scale operations. Pearson is allegedly a member of a major criminal organization. They are not in a position to wait for Bitcoin traders to complete. As such, the role of the world’s leading cryptocurrency in this case remains rather unclear at this time.
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