Shapeshift accused of money laundering $9 million
The Wall Street Journal, after a long investigation which involved two employees working at Shapeshift, have declared the exchange service has been guilty of laundering illegal assets worth up to $9 million from North Korean agents, credit card scammers and Ponzi schemes.
On Monday, ShapeShift CEO Erik Voorhees hit back saying the US newspaper was“omitting” facts and misunderstanding how cryptocurrency and blockchain work.
The investigation claims to have revealed $89 million of laundered funds across many exchanges, saying Shapeshift’s previous anonymous trading policy made it the clear leader. In the last month, Shapeshift has been radically reforming its policies and introducing stringent Know Your Customer policies.
In this week, a senior official from Wall Street Journal halted the company’s own cryptocurrency, saying it raised serious ethical questions. The project, which involved one of the reporters travelling to Japan and creating a press-related crypto called the WSJ coin to understand how things worked for their own recent documentary. However, after the reporter pitched a full issuance to investors, the publication’s Head of Ethics shut the scheme down, saying it raised serious ethical...
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