In today’s world, the influence of media on ones thought the process is at a high point. Be it social media on mainstream media it very difficult to differentiate the news from the rumors. Cryptocurrencies have been a victim to this for a long time and if Shapeshift CEO is to be believed they continue to do. In a recent article published in Wall Street Journal, the author accuses Shapeshift (and other cryptos) of providing a platform to criminals to launder their money.
Wall Street journal displaces Voorhees and the crypto community
The recent article published by Wall Street Journal titled “How Dirty Money Disappears Into the Black Hole of Cryptocurrency” written Justin Scheck and Shane Shifflett puts forward the narrative that says that anyone who wishes to launder their dirty money, be it A North Korean agent, a stolen-credit-card peddler and the mastermind of an $80 million Ponzi scheme, uses ShapeShift AG and anonymously converts it to cryptocurrencies. The write up goes on further to target privacy coins like Monero which are completely untraceable and best hideouts for money launderers.
The article further accuses Shapeshift and its policies by saying
“After hackers believed to be from North Korea extorted millions of dollars in the so-called WannaCry ransomware attack on businesses and governments, the criminals used ShapeShift to convert bitcoin into an untraceable cryptocurrency called Monero, security researchers found. For the next year, ShapeShift made no changes to its policy of not identifying its customers, and continued to process millions of dollars in criminal proceeds, according to the Journal investigation.”
It also blames Voorhees of keeping Shapeshift noncompliant of KYC norms and quotes him, from one of his interviews saying,
“I don’t think people should have their identity recorded to catch an occasional criminal,”
The article also blames Erik of falsely convincing the Venture Capitalists
“Lured by bitcoin’s boom, investors in Europe, California, and Colorado looked past legal risks to put more than $12 million behind ShapeShift. They say, Mr. Voorhees, who says he “would like the national government to be dissolved,” has convinced them he is a pragmatic businessman willing to follow federal laws.”
The use of his and Shapeshift’s name in such a loose manner has not gone well with CEO Erik and he has strongly replied back to WSJ and its authors. Using his Twitter handle Voorhees tweeted how mainstream media is still publishing poorly researched articles on cryptocurrencies without caring about the implications which could be disingenuous and misleading.
1/2 We are aware of the poorly-researched piece written against us by someone at WSJ. The implications are disingenuous and misleading. pic.twitter.com/IIyOjactGk
— Erik Voorhees (@ErikVoorhees) September 28, 2018
2/2 Author cherry-picked data, excluding facts contrary to vilification narrative. $9m figure is less than 0.2% of our volume over the time-period. Meanwhile global money laundering through banks is 2-5%. Op-ed forthcoming.
— Erik Voorhees (@ErikVoorhees) September 28, 2018
Erik Voorhees find support from Joseph Young who points out that federally managed bans also launder money
While Erik fights his battle to prove the article’s narrative wrong, he has found the support of Joseph Young who replied to Erik tweet saying that such articles aren’t really about money laundering but actually are about pushing a narrative that crypto is criminal money.
A bank in Denmark laundered $230 billion. Why are we even talking about $9 million on crypto exchanges?
This isnt really about money laundering in case it’s not obvious yet. It’s about pushing a narrative that crypto is criminal money.https://t.co/F77XOxtenK
— Joseph Young (@iamjosephyoung) September 29, 2018
He also points about how banks to launder money but none of the media speaks about it as they speak about Bitcoin and Cryptos. While explaining how media is biased, he points at a bank in Denmark that has been found guilty of laundering USD 230 billion. The reference is towards Danske Bank, Denmark’s largest bank, which said that more than $230 billion in the suspected money laundering transactions flowed through its tiny Estonian branch, a disclosure accompanied by the resignation of the bank’s chief executive.
What Erik and Joseph are put forwarding is that frauds and money laundering is everywhere, be it centralized and federally managed banks or cryptocurrencies but highlighting only cryptocurrencies as the culprit is something that is not correct. One has to understand that times are changing and cryptocurrencies have the potential to do much more than laundering money
Do you agree with Erik Voorhees and Joseph Young on their view about mainstream media? Do let us know your views on the same.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.