EE / Guide
7 min read
Crypto money laundering, explained.
Money laundering means making stolen or illegal money look clean. In crypto it follows the same three stages as traditional finance, but every stage leaves a trail on the blockchain.
Why crypto is traceable
Unlike cash, crypto transfers are permanently public. Mixers and bridges add noise, but patterns in timing, amounts and wallet behaviour often survive them.
Common laundering tools
Investigators most often see:
- ⏵Mixers and coinjoins
- ⏵Cross-chain bridges
- ⏵Swaps into stablecoins
- ⏵Nested or offshore exchanges
- ⏵OTC brokers
Where it gets stopped
The cash-out stage is the weak point. Regulated exchanges must identify their customers, and stablecoin issuers can freeze tokens. That is where recovery becomes possible.
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Every mandate is independent and strategy is built around each client. Outcomes are not guaranteed.