Dutch Authorities Arrest Two Men for Alleged Crypto Money Laundering

The Dutch Fiscal Intelligence and Investigation Service (FIOD) has arrested two males for allegedly laundering cash with cryptocurrencies.

In line with a press release launched by the Worldwide Income Service on Feb. 18, the 2 males had been arrested on Feb. 17 in connection to 2 separate felony investigations into cash laundering utilizing cryptocurrencies. Each investigations had been led by the Nationwide Workplace for Critical Fraud, Environmental Crime and Asset Confiscation.

The cash path

One of many suspects was a 45-year-old man who’s accused of laundering 2.1 million euros. He purportedly used massive purchases with a cryptocurrency-backed bank card that the Netherlands tax authorities couldn’t clarify primarily based on his revenue and property.

He additionally allegedly withdrew 10,000 euros (almost $10,800) in money. A number of of his possessions had been seized, together with three kilograms of gold, 260,000 euros in crypto (over $280,000) debit and bank cards, a automotive and luxurious items resembling watches and jewellery.

The opposite suspect is accused of getting laundered 100,000 euros (almost $108,000). He allegedly used cryptocurrency mixing service Bestmixer, however authorities had been capable of determine the IP deal with related along with his Bitcoin deal with.

As Cointelegraph reported in Might 2019, Dutch and Luxembourg authorities together with Europol shut down one of many three largest cryptocurrency tumblers.

Cryptocurrencies and cash laundering

Monetary regulators across the globe have prompt that there’s a relationship between cash laundering and cryptocurrencies on a number of events. Not too long ago, the Central Financial institution of Russia revealed a brand new algorithm for suspicious transactions that broadly categorizes any cryptocurrency-linked transaction as a possible cash laundering threat.

In an try to cut back the cash laundering dangers related to cryptocurrencies, Swiss regulators not too long ago handed new guidelines that decrease the edge for unidentified crypto alternate transactions from 5,000 francs to 1,000 francs (roughly $1,020).