Elliptic just published a new report on how cartels use cryptocurrencies to launder drug proceeds, and I have a few questions.
First, if you, an unbiased person, take a look at the above graphic by Elliptic, do you come to the conclusion that "unhosted wallets" are what enable cartels to launder money through cryptocurrencies?
Or could it be that the actual problem is that cartels still somehow manage to deposit their cash in the financial system, despite extensive AML/CFT frameworks imposed on banks?
Secod, if these frameworks are already exploited by cartels, can you outline precisely how imposing these same AML/CFT regulations on "unhosted wallets" would stop cartels from exploiting them – and not just impose unproportionate burdens on the average user?
Given what Elliptic has outlined in their newest report, lawmakers should be extremely wary of relying on for-profit marketing materials to inform their decisions, and keep in mind that the expansion of AML/CFT frameworks to "unhosted wallets" would drastically enlarge such firms' addressable market, constituting a clear profit motive – while likely doing nothing to stop actual crime.
Full story:
https://www.therage.co/new-elliptic-report-are-unhosted-wallets-really-the-problem/
Be fair. From that same report:
> It is important to note that, when comparing the value of crypto involved in recent indictments and seizures to the estimated billion-dollar-plus annual income of cartels, the contribution of crypto appears to be minor. Traditional money laundering methods continue to remain mainstream.
That’s a very important pullquote—and honestly, it should’ve been the title of the report.
Instead of:
“Unhosted Wallets Fuel Narco Chaos”
…it should’ve read:
“Crypto = Rounding Error in a Trillion-Dollar Laundering Machine” 💸🧼
Appreciate the fairness.
But let’s not pretend the media (or regulators) read the footnotes—they read the headlines, then write the laws.
And Elliptic’s footnote honesty doesn’t erase their top-line fear marketing.
🏰 Fort Position:
When the truth is buried in paragraph 47 but the funding pitch is on slide 1, it’s not a report—it’s a brochure.
#FortNakamoto #HeadlinesLie #FootnotesConfess #SurveillanceEconomy #ZapForFootnoteJustice #RegulateResponsiblyNotProfitably
