The Dark Side of Crypto: How Money Laundering Occurs Through Digital Assets:

1. 🏦 Buying Crypto from Non-KYC Exchanges

Perpetrators buy crypto (usually Bitcoin, Monero, etc.) from platforms that do not require identity verification (non-KYC) or from peer-to-peer markets.

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2. ♻️ “Mixing” and “Tumbling”

They use Bitcoin mixer or coin tumbler services, which break transactions into small parts, mix them with other people's transactions, and then send them to new wallets. The goal: to obscure the on-chain trail.

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3. 👻 Using Privacy Coins

Privacy coins like Monero (XMR), Zcash (ZEC) are often used because their transactions are hard to trace, not transparent like Bitcoin.

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4. 🌍 Sending to Multiple Wallets & Blockchain Networks

This process is called chain hopping — perpetrators move funds between blockchains (for example, from BTC to ETH, then to Tron) to confuse tracking.

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5. 🏧 Withdrawing Money Through Crypto ATMs

After the money is "clean", perpetrators can withdraw cash through Bitcoin ATMs in countries with weak oversight, or sell through P2P.

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6. 🖼️ Using NFTs or Blockchain Games

Some perpetrators create NFTs and then buy them themselves with another wallet — as if a legitimate transaction has occurred. The same goes for items in blockchain games (play-to-earn), which can be manipulated to launder money.