The Crypto Launderers

Re-discover the crypto underground In The Crypto Launderers: Crime and Cryptocurrencies from the Dark Web to DeFi and Beyond, renowned anti-money laundering and counter-terrorist financing expert David Carlisle delivers a fascinating breakdown of the impact of crime on the world of Bitcoin and other cryptocurrencies. Tracking the history and evolution of crypto crime from the rise of the Dark Web to the present day, Carlisle recounts how an increasingly complex money laundering ecosystem has taken root in the crypto space. He describes in vivid detail how North Korean cyber thieves, Russian hackers, narcotics traffickers, and other illicit actors have moved billions of dollars’ worth of cryptocurrencies through the blockchain, exploiting new technological innovations to profit from their crimes. In response, regulators, private industry, and law enforcement have begun fighting back against bad actors abusing cryptocurrencies – scoring critical victories along the way, but also igniting important and sometimes fierce debates about the future of innovation, finance, and the law. The author explains: A wide variety of technologies exploited by criminals, including mixers, privacy coins, Bitcoin ATMs, decentralized finance applications, and NFTs The rise of ransomware and the industrialization of the cybercriminal ecosystem How the transparency of the blockchain leaves criminals vulnerable to detection, while fueling controversial debates about financial privacy Emerging innovations, such as the rise of the metaverse, that could shape the future of crypto crime An engrossing and comprehensive analysis of the intersection of crime, technology, and finance, The Crypto Launderers will prove impossible to put down for readers with an interest in law, finance, tech, and the blockchain – as well as for anyone with even a passing interest in cryptocurrencies.

Foreword ix Timeline of Key Events xi Prologue xv Chapter 1: The Dark Web: The Origins of Crypto Laundering 1 Chapter 2: Black Holes: The Rise of the Rogue Exchange 23 Chapter 3: Mixers: Covering Up Their Tracks 39 Chapter 4: Privacy Coins: Going Underground 59 Chapter 5: Bitcoin ATMs: Crypto Hits the Streets 83 Chapter 6: Ransomware: Cybercrime Goes Industrial 97 Chapter 7: Hacked: Crypto Exchange Heists 123 Chapter 8: DeFi: Tornadoes, Bridges, and the Frontiers of Regulation 139 Chapter 9: NFTs: Virtual Art, Virtual Crime 163 Chapter 10: Brave New World: The Metaverse, Web 3.0, and the Battle for the Future of Finance 177 Afterword: How Much Crime in Crypto? 193 Acknowledgements 199 Glossary 201 List of Figures 207 Bibliography 209 Notes 211 Index 249