Money laundering is described as the transfer of illegally obtained funds through legitimate people or accounts in order to conceal the source of the funds. Financial institutions, such as banks and other credit-granting organizations, use anti-money laundering (AML) systems to prevent it by identifying and fighting against money laundering threats. If you want to know how to prevent money laundering in cryptocurrency, then you must understand the power of blockchain intelligence in combating money laundering. In this article, we will discuss cryptocurrency money laundering typologies and the cryptocurrency money laundering case study of the Coincheck hacking incident and others. Cryptocurrency Money Laundering Typologies Those who examine their blockchain transactions will look for several things. One such typology to look at is the use of non-compliant crypto exchanges. In this case, the criminal party is frequently attempting to ‘clean up’ an illegitimate funding source by trading it for cash or other cryptocurrencies. For instance, Payza, an unregulated exchange, laundered $250 million through altcoins and Bitcoin, as discovered by the US Department of Justice in 2018. Cross-wallet activity by the same customer multiple times is also among cryptocurrency money laundering typologies that help launder money through the dark web or via offshore gambling. It highlights suspicious behavior than illegal activity, though. For ins...
