Money laundering

Money laundering describes concealing the origin of assets so that they appear to come from an ordinary source. In the context of crypto, this looks at routes that make the origin harder to follow. Whether a specific situation falls under it is an assessment that can only be made after investigation and weighing.

What it may indicate

A route that makes the origin hard to follow can be an indication, but it need not mean anything; sometimes there is an ordinary explanation. It is emphatically not a finding that someone is doing something wrong. What it really is only emerges from careful investigation and a weighing that takes place elsewhere.

While following a flow of funds, it stands out that a route runs through several intermediate steps that make the origin less traceable. That pattern can be a reason for further investigation, but in itself it does not say that money laundering is taking place.

What does money laundering mean?

Concealing the origin of assets so they appear to come from an ordinary source. Whether it applies to a specific case only emerges from investigation and a legal weighing.

Does a hard to follow route mean money laundering?

No. It can be an indication, but there can be an ordinary explanation. It is not a finding of wrongdoing; that is weighed elsewhere after careful investigation.