Many folks' gut reaction may be that the use of cryptocurrency made the cash untraceable, but the problem isn't with the blockchain. In fact, for the vast majority of currencies, the on-chain ledger offers more visibility into transactions, not less. What failed here was the lack of official records linking wallets to persons or entities.
Reputable exchanges all have a form of identity verification, known as KYC, mandated by law. The problem is that apparently almost no entities Hannon traded with had any recognizable proof their crypto wallets belonged to them. The Venezuelan crude oil salesmen vanished, effectively cutting off nearly every avenue for investigation. Before their exchanges, they had even advised Tse to not keep records of their transactions due to the government's investigation into their collective's dealings.
Even in Dubai, pending court cases regarding the dollar-to-USDT exchanges hinge on the same problem, despite the presence of verifiable bank transactions. Broadly speaking, the country's legal system places the burden of proof fully on the accuser, making them prove wallet ownership before discussing the meat of the dispute. That's quite the high bar to clear for Hannon in order to prove that it wasn't handed the funds from the exchanges.
That task may well prove impossible, since one can't prove a negative when there's nothing linking the exchange to their wallet. Adding insult to injury, the two exchanges in the court were both recently created, and probably weren't a part of Dubai's VARA program for legal crypto operations. Caveat emptor .
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Bruno Ferreira Social Links Navigation Contributor Bruno Ferreira is a contributing writer for Tom's Hardware. He has decades of experience with PC hardware and assorted sundries, alongside a career as a developer. He's obsessed with detail and has a tendency to ramble on the topics he loves. When not doing that, he's usually playing games, or at live music shows and festivals.
Alastor01 Why would you pay so much money using such untraceable method? It is asking for trouble Reply
psyconz Alastor01 said: Why would you pay so much money using such untraceable method? It is asking for trouble The method is traceable, they just never linked the people they met to the method. From the article (and it's true for most cryptocurrencies): "Many folks' gut reaction may be that the use of cryptocurrency made the cash untraceable, but the problem isn't with the blockchain. In fact, for the vast majority of currencies, the on-chain ledger offers more visibility into transactions, not less." Reply
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/cryptocurrency/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/cryptocurrency/poland-lost-usd230m-in-cryptocurrency-trying-to-buy-venezuelan-oil-in-2023-adventure-puts-crypto-wallet-ownership-identification-at-the-forefront#main
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Informational only. No financial advice. Do your own research.