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Dark Web Cases Show Pitfalls of Laundering Funds Through Cryptocurrency: Sources

By Daniel Bethencourt

Bitcoins and other cryptocurrencies have carried a reputation as anonymous conduits for illicit transactions, especially on the dark web, where online black markets modeled on the now-defunct AlphaBay and Silk Road offer "tumbling" features to help obscure illegal purchases. But recent federal cases show that the same financial instrument that keeps online black markets in business is also their Achilles' heel: Ten years after bitcoins entered circulation, converting them into government currency remains a complex, uncertain process and comes with the risk of detection by law enforcement, sources told ACAMS moneylaundering.com. The most recent example came Wednesday, when federal prosecutors...

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