Crypto criminals have made a name for Argentina as a preferred location for their illicit activities. A 37-year-old man in Argentina was recently arrested for pretending to be a crypto grader in order to launder millions of dollars in cryptocurrency assets on behalf of several criminal organizations.
Scheme to launder money through crypto in Argentina
Even though the authorities didn’t release the suspect’s identity, the local news reported that the money originated from scams performed via phony websites. The suspect’s account raised suspicions after local authorities were informed that the exchange had been used to transact tokens.
The authorities discovered that the suspects were running a high-profile money laundering scheme in which they duped unsuspecting customers out of their money by using cloned bank pages. The suspects who used other people’s identities to create bank accounts, the people who recruited them, and the people who cloned the bank pages were all identified by the police.
The suspect was able to launder $11.57 million worth of cryptocurrency using a hardware wallet, according to the investigation performed by the police. Hardware wallets are convenient for money launderers because of their portability and availability. Furthermore, these wallets are in the form factor of a pen drive, and accessing the tokens stored within the hardware is simple. Hardware wallets are accessible after they are connected to a computer and a 12-word password is entered.
The authorities were able to put a stop to the high-profile money laundering scam with the arrest of the main suspect. The cyber authorities and police in Argentina have been working together to lower cybercrime rates. They have launched 70 simultaneous raids across the globe. Although this is a major victory for the government, it once again casts an unfavorable light on digital assets. Countries like China and Nigeria have outright banned cryptocurrencies, but others, like the United States and the European Union, are actively working to legalize and mainstream crypto-based transactions.
In conclusion
One of the major remaining issues with cryptocurrencies is the ease with which criminals may utilize it for illegal activities like scamming and money laundering. Rug-pulling and smart contract exploitation are on the rise, and both have the potential to cause enormous financial loss and expose the sector to fraud.
Proponents of cryptocurrencies argue that the number of crimes has decreased as a result of increased surveillance, exchange platforms conducting Know Your Customer (KYC) checks, and tightened regulations, and that the majority of crimes come from fiat systems, which will also decrease in the coming days given that a predetermined number of regulations will be deployed.
To read our article about “Tire smuggling costs us Rs. 40 billion every year” click here.
