Nexo co-founder Antoni Trenchev informed Cointelegraph that he believes the data revealed throughout the latest FinCen leak vindicates the crypto trade. According to the leak, the worlds main monetary establishments cleared over $2 trillion suspicious transactions and Deutsche Bank alone cleared over $1.three trillion of that quantity. Trenchev stated:
The first thing I’m feeling is vindication because like everyone has been saying for years, all that Bitcoin and money laundering in the same breath. We’ve been hearing that from regulators, from politicians, from bankers, from just about anyone. And it turns out that the number one choice for money launderers still is the U.S. dollar and still is the incumbent legacy financial system.
Had such a stage of exercise come from Coinbase or Nexo, he agreed that legislation enforcement would have paid them a go to the very subsequent day, saying Yeah, it is a horrible double customary.”
Trenchev additionally emphasised the truth that the one firm that was talked about within the Leak with any cryptocurrency ties was OneCoin, and even that was a stretch, in his opinion:
Her [Ruja Ignatova, OneCoin founder] mission had little or no to do with crypto, they did not also have a blockchain. This is a basic multilevel advertising Ponzi scheme.
When it involves bankers, Trenchev believes that there’s little motivation to curtail cash laundering and different illicit actions, because the punishment appears to be quite forgiving. In reality, such actions will be extremely profitable:
It’s called willful blindness, like where you know there’s something wrong, but you choose to ignore it. <…> And then, second of all, the sanctions are not that bad. When you look at what happened, hardly anyone from the bankers has been prosecuted criminally for money laundering. And the caveat here is also that once you file a suspicious transaction report, this almost gives you immunity from the rule of law,
Nexo additionally information various suspicious activity reports with related regulators all over the world. Trenchev stated that roughly 4% of Nexos transactions get flagged. The firm can also be pressured to adjust to the U.S. sanctions and blacklist nations like Iran, Venezuela, and North Korea,
Though it’s unclear if the publicity generated by the Leak will result in investigations and prosecutions, most of the implicated banks have been punished by the market.