Home News Cryptocurrency Exchange ShapeShift Bites Back at Money Laundering Claims

Cryptocurrency Exchange ShapeShift Bites Back at Money Laundering Claims

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Wall Street Journal report just lately alleged that blockchain agency ShapeShift was one of many largest recipients of illicit funds. Now the agency hits again on the criticism.

Posted on the corporate’s official weblog, ShapeShift said that the general article incorporates factual inaccuracies and has omitted important particulars concerning how ShapeShift operates. The piece reveals a misunderstanding of blockchain transaction operations, it added.

As CCN reported, the WSJ article titled “How Dirty Money Disappears Into the Black Hole of Cryptocurrency”, traced funds from greater than 2,500 wallets that has confronted accusations on courts for his or her involvement in prison actions. The report alleged that ShapeShift has been processing $9 million out of the suspected $88 million over a two-year interval.

“A North Korean agent, a stolen-credit-card peddler and the mastermind of an $80 million Ponzi scheme had a common problem. They needed to launder their dirty money. They found a common solution in ShapeShift,” the article said.

To this, the agency has reverted again saying that ShapeShift has been working with WSJ for 5 months, accommodating their queries, whereas the media big has misrepresented their intentions. Erik Voorhees, CEO ShapeShift stated,

“Of the many things I communicated with them over the past months, they included not a single statement from those lengthy discussions, preferring instead to include out-of-context remarks I’d made elsewhere.”

Also, Voorhees, co-founder of the bitcoin firm Coinapult and one of many top-recognized serial Bitcoin advocates, condemned that WSJ journalists have omitted key data that ShapeShift has shared. “The WSJ decided to exclude from their article; facts such as, $9m (even if it was true) is 0.15% of ShapeShift’s exchange volume during the described time period,” he stated within the put up.

Few different details together with ShapeShift’s sturdy report of complying with law-enforcement requests, providing help in additional than 30 investigations in numerous nations; ShapeShift blacklisting suspicious addresses upon studying of them; the agency having an inner anti-money laundering program that makes use of extra superior blockchain forensics; have been uncared for, he added.

The WSJ report confirmed factual data from safety researchers proving that criminals used ShapeShift to alternate bitcoin for monero, an anonymity-centric cryptocurrency. The journal talked about that ShapeShift didn’t change its coverage even one 12 months after the WannaCry ransomware assault, and that the alternate has continued to launder illicit funds that can’t be traced.

That stated, Voorhess clarified that the journalists of WSJ have withheld data for months concerning the suspicious accounts so as to construct their story, “rather than communicating it to the appropriate exchanges and ShapeShift immediately so that funds could be frozen or blocked.” Also he confirmed that each single transaction carried out on ShapeShift is made public, making it traceable and that the alternate doesn’t transact in fiat.

Blaming WSJ for not having adequate understanding of blockchains and ShapeShift’s platform particularly, the CEO said that there’s inaccuracy and ambiguity in these details offered by WSJ that alleged $70,000 was laundered by ShapeShift, whereas in actuality $zero was laundered by ShapeShift.

He lastly confirmed that ShapeShift has an industry-leading Anti-Money Laundering compliance agency checking all its transactions.

With extra confidence and details, Voorhess concluded that the corporate will push ahead in suggesting WSJ, a greater title that’s extra acceptable, being, “Less than two tenths of one percent of ShapeShift’s business might be illicit.”

Featured picture from Shutterstock.

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