If you have been around for a while in the crypto world you will know all about Mt Gox and its infamous collapse. Your also probably well aware of the cyber criminal element that so many crypto enthusiasts have been assumed to be a part of. People used to say that bitcoin was just used for buying drugs on the internet. It wasn't true and it is not quite that simple, but now with formal legal proceedings of Mt Gox's bankruptcy turned civil rehabilitation what remnants of the Silkroad economy there once was are being cleansed.
Mt Gox once controlled 80% of the volume of bitcoin trading. Anyone needing to turn bitcoin into cash had to use the site. In the early days, some people had account with verifying their ID's. This later progressed into an over the top photo verification process. Still it is possible that a significant amount of criminal money resided there. Statistically more because criminals, by the nature of their business need to exchange bitcoin and get cash. Investors can simply hold their bitcoin funds offline.
The legal proceedings of bankruptcy have required more and more privacy intrusion, Id verification, addresses etc and this information is not protected from government legal bodies. This is cleansing the crime from bitcoin because, if you had money gained illegally in Mt Gox, you will now be hesitant to try and reclaim it from the authorities. The question of where did you get these funds can easily arise and in most cases, this risk is more than it is worth. In this way the legitimate credit holders are rewarded.
The rehabilitation is proving to be very liquid. This in the main is due to the huge price rise. It has created a forced hodl situation that has paid off. Crims not wanting to give up ID's though, wont get any of the benefits. Rinse, repeat and bitcoin is becoming squeaky clean.
Mt Gox once controlled 80% of the volume of bitcoin trading. Anyone needing to turn bitcoin into cash had to use the site. In the early days, some people had account with verifying their ID's. This later progressed into an over the top photo verification process. Still it is possible that a significant amount of criminal money resided there. Statistically more because criminals, by the nature of their business need to exchange bitcoin and get cash. Investors can simply hold their bitcoin funds offline.
The legal proceedings of bankruptcy have required more and more privacy intrusion, Id verification, addresses etc and this information is not protected from government legal bodies. This is cleansing the crime from bitcoin because, if you had money gained illegally in Mt Gox, you will now be hesitant to try and reclaim it from the authorities. The question of where did you get these funds can easily arise and in most cases, this risk is more than it is worth. In this way the legitimate credit holders are rewarded.
The rehabilitation is proving to be very liquid. This in the main is due to the huge price rise. It has created a forced hodl situation that has paid off. Crims not wanting to give up ID's though, wont get any of the benefits. Rinse, repeat and bitcoin is becoming squeaky clean.
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