Bitcoin Wrongfully Accused of Involvement in Spanish Money Laundering Scheme

Bitcoin keeps making headlines all over the world these days, albeit not always in a positive manner. Several people in Spain have been arrested for laundering money through cryptocurrency.

Pay TV Money Laundering In Spain

shutterstock_164032439TheMerkle_Money Laundering Span Bitcoin

According to Spanish police sources, 30 people had been arrested earlier today on grounds of money laundering. All of the suspects were distributing pay television content in exchange for a payment. The funds generated through this business model were then used to purchase Bitcoin mining hardware and launder the money.

Once again, this is a news story where Bitcoin is mentioned in the headlines. Yet the cryptocurrency has nothing to do with the crime itself. Running an illegal business model had nothing to do with Bitcoin, as they accepted a different payment method for their service. Investing the money earned in Bitcoin mining is not illegal, hence Bitcoin is not part of the crime.

The reason why these individuals invested in Bitcoin mining is because the purchased hardware can be used to generate more cryptocurrency. They could not use an exchange, as that process is subject to strict identity verification procedures. Criminals want to remain anonymous at all times, yet Bitcoin won’t help them in doing so.

In fact, Reuters mentions how the criminals invested the funds from their illegal pay television distribution was invested in other ways as well. By purchasing luxury cars and property, the criminals attracted a lot of unwanted attention. Earning a lot of money out of thin air will always raise suspicion, regardless of how the funds is being spent.

Although official numbers are hard to come by, the police has seized over 30,000 euros in Bitcoin and cash. Moreover, they also seized several motorbikes, luxury cars, and a small aircraft in the process. Once again, Bitcoin is not to blame for these arrests, as these 30 people had a clear intent to commit a crime.

Source: Reuters

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