NFT Money Laundering Research Digital Artwork of Cliff

In a previous article, Sister Sa's legal team advised everyone to use virtual resources to launder money using anonymous accounts (keys), exchanges to point, cross the border, and not be able to to recover. Difficult to trace and trace the origins of financial liability prevention and strengthen financial protection management. So with virtual currency, as part of basic technologyIs there a risk that NFTs will be used for laundry?? I believe people who follow the results and the strong NFT are asking these questions.

Indeed, there are currently no instances where NFTs have been the subject of public money laundering on a global scale. When. However, this does not make participants suspicious, it does not mean that the risk of money laundering in NFTs is lower than in cryptocurrencies, but that it will be higher! Today, Sister Sa's legal team is here to discuss the potential dangers of NFTs.

NFT vs virtual currency

If you want to understand how cryptocurrencies, NFTs, and other virtual devices are used in money laundering, the most common, efficient, and easiest way to understand them is to look at how they play a game. role in all aspects of laundry. . Ultimately, the purpose of the money market is to turn “black money” from illegal income, crime and other crimes into legally recognized and protected “free money”.Laundry money is an important part of the business that helps black money holders explain their black money clearly..

Why can cryptocurrencies be used for money laundering?

As mentioned earlier, the reasons why virtual rewards can be simple and easy to use money laundering tools such as anonymous companies, the transition to user-friendly, cross-border, irreversible and also targeted business value, etc. Among them, anonymity and ease of crossing the border are important.

Regarding anonymity, having an anonymous person on the open network means that the identity of the network is affected by the real world identity, and not all network behavior can be traced to the truth. Based on the ease of cross-border distribution of goods, the annual management of personal currencies and domestic currencies is carried out in accordance with article 2 of the “Management Regulations. See Self-employment ”. to buy. The total annual amount is equivalent to US $ 50,000 per person per year. Virtual currencies are not subject to this restriction, and as long as fiat money can be converted into virtual currency, it can easily break the country's foreign exchange restrictions and know how to cross the border of great wealth.

So a person who needs laundry can easily and unwillingly send money overboard, provided they find a way to exchange their black money for virtual currency. Then the financial companies can do the laundry work using the services provided by various overseas real estate service providers. It can be exchanged for cash. Fiat currency clothing. In an era when the market value of virtual currency is increasing, many people are able to achieve certain goals without having to trade virtual currency for fiat.

Why can't NFTs be used for laundry?

As a new birthplace, NFTs are different in terms of virtual outcomes, the most important feature is knowing the difference between virtual outcomes. There are now two main reasons why the risks of NFT money laundering are generally considered low.(1) pseudo-anonymous(2) It is difficult to determine the market value.. The traceable nature of each link, references to traffic, and NFT's status as a special product, make it difficult to conceal the identity of the owner behind it, and it is unthinkable that the responsibility for the price would change for the tour as a whole. . . .

In terms of pseudo-anonymity, NFTs use the same technological basis as virtual results, but their anonymity is comparable to virtual results. The reason is that most of the NFT industry now relies on the Ethereum platform, but the Ethereum platform only provides pseudo-anonymity, not strict anonymity or confidentiality. Users can only partially hide, but if the public is aware of the link between their real identity and their location, they can directly view all of their activities on location. Proven homomorphic encryption, zero authentication, signature ring, and multiple person count have not been achieved for large NFTs due to complex cryptographic processes and security considerations.

The commercial value of NFTs is difficult to determine, and compared to virtual currencies, NFTs are unique in the virtual world and often appear in digital works of art. So it is almost impossible to continuously recharge the NFTs (this loses the drawbacks and the rarity and the switch from one thing to another).

However, we believe that these two characteristics do not prevent them from using money laundering tools.The advantages of NFTs in money laundering.

How can NFTs be used for laundry?

If one can easily determine that NFTs fight money laundering on the basis of the pseudo-anonymity of NFTs and the difficulty of determining their market value, we fall into the "warning trap". In other words, the use of technology in the field of virtual currency and NFT is lying to us, and we look at NFT from a virtual currency money laundering prevention perspective.

Adjusting the NFT according to the aesthetic function will make your vision clearer.

This should discuss niche gameplay that avoids the usual money laundering.money laundering using art.

Money Laundering and Qiuting Consortium Bank

In the 1990s, Japan had a large organization, the Qiu Ting Consortium, which sought to bribe the Japanese with various illegal activities. Back in those days, it was easy to bribe a lower ranking politician, one who dares to give and one who cash in, secretly looking for a place to pay and do it all. But if you want to bribe the politicians who hold power in your country, you have a lot of experience, if not for the religious differences between the two parties, the relationship of unity and participation in one year, each. find out what cannot be found.

The Qiu Ting organization made the final choice. The best crimes of the 1990s are as follows: First, the Qiu Ting consortium was organized for representatives of Japan or senior officials to visit some of the museums on the outskirts. million. A famous painting or work of art.

After some time, the Qiuting Consortium submitted the famous photos to one of Europe's top auction houses for public auction by "anonymously by unknown author". If no one bets, or if the competition is weak, the Japan Chewing Foundation and the consumer will win the competition up to $ 20 million before the final competition.

The Qiuting Association has taken advantage of mastering uncertainty and the difficulty of determining the market value of art to achieve political prosperity.

General procedures for laundering budgetary works of art

Compared with other methods of money laundering, the magnitude of money laundering using art is large, requires more art industry rules and regulations, and the cycle long, which is the same thing that people cannot do. So, not many people use this method to launder money, and it is an easy niche and advanced money laundering method. In fact, he takes advantage of the fact that the market value of art is difficult to measure and leaves a lot of room for speculation.

The money laundering cycle of this method usually takes many years, and over a longer period of time the energy is hidden. In theory, if the setup is correct and the cycle is running long enough, this will not be visible. In general, the following steps are required:

(1) Find the appropriate pictures. First, we have to examine and select the jobs available in the market, in general, jobs at a cost of hundreds of thousands being selected, and there are hundreds of similar jobs in the market.

(2) Buy good research material. During this time, the works identified in the market must be purchased in bulk, including several orders.

(3) Maximum for operation. During this period, the purchase of products of the same brand was placed in the best retail outlets in other countries and regions, and the cost of such work was further increased by many people. Represented in a joint venture, or by a high market, a contract, and a fraudulent trade, the method gave birth to the idea of ​​a work of art of all kinds at the cost of the sky. It is necessary to adjust the final market value by about 100 times the original value.

(4) Start money laundering.

How to clean it? For example, suppose A currently has $ 1 billion in stolen property and needs to be laundered with legitimate income. Thus, A may start collecting paintings from time to time, often attending art competitions, etc. to buy the same work, creating a family environment for collectors who have started to love art. One day, A "now" buys several works by famous artist X in the store, and after a while, A submits his works to public and legal international auctions. This time, strangers and unknown teams competed against each other for the contest, and finally an individual or organization sold the contest for tens of millions of winners. .

Get A and then keep bidding, and many unknown people or groups will take the auctioned auction at a slightly changed price, and that money that the mystical group used in the tournament will be paid by A using the stolen funds. As a result, Mr. A succeeded in wiping out the stolen billion dollars. While the ultimate art fee hype can affect group laundering, money loss and costs such as income, fees, and taxes, while other art forms can create more money. value.

that knowledge isvery hiddenYes, all of Mr. A's income is legal, and there is no connection between Mr. A and the confused guy who made the "reasonable business value" video. Anonymity is not important to A. The more difficult it is to determine the market value of art, the better for A.

NFTs are a viable alternative to this technology.

For the same reason, replacing traditional charts with NFTs with the same technology and using cryptocurrencies for competition would eliminate the connection, making the whole financial process easier and faster.

One thing is certain for money A, which stole 1 billion in winnings. Meanwhile, if there is a personal setup of a cryptocurrency writer, he can become a famous cryptocurrency writer himself. The same method can be used to hyped up some NFTs of the same brand and for the same price and ultimately achieve the goal of money laundering.

Because most NFT trades have a "28th effect" (that is, only high temperature trades and the rest are usually flat), assets are poor and NFTs lose all of their value when the operation cools down.The hype is DNA being synthesized in the bloodstream of NFTs..

In fact, there are many “pair exchanges” within the NFT industry itself, and NFT artists, casters, and companies all overestimate the value of NFT. Beeple's $ 69 million NFT transaction was seen as a joint venture with stakeholders, but no one has disclosed the facts. The artistic price itself is very subjective, and if the sale is legal because one party is willing to buy and sell and the other sales, it is still available even if the auction price hits the cap. In such an environment, the use of NFT to perform laundry tasks is essentially not detectable as long as it is effective.

The lack of oversight and the expansion of unhealthy virtual auction platforms, along with the benefits of virtual rewards, provide a wide range of real-time and valuable NFT real-time money laundering services. Sister Sa's legal team reiterated that offshore NFT trading platforms are not as strict as the KYC rules when working.On many platforms, KYC search is a straightforward application., administrative data can also be used to bypass audits. People need to be aware of the financial implications of DFTs.

enter at the end

So far, the use of cryptocurrencies for money laundering appears to be universally applicable, and with a small amount of illegal money, the use of cryptocurrencies for money laundering or cross-surveillance is a better option. Money laundering using NFT is more and more difficult, but the money laundering behind it is even more secret and more profitable.

Negative comparisons:Cryptocurrency money laundering is akin to a conspiracy, while NFT and artistic money laundering is akin to a conspiracy.. In the process of laundering money using artwork, the looters will be involved in the whole process along with themselves. Of course, in the absence of concrete examples, all assessments are thought-provoking and should be tested by practice.

go,Hype is at the heart of money laundering in art, and today the hype is even more essential in the NFT industry..