ShapeShift CEO Denies WSJ's Recent Analysis On 'Dirty Money'.

ShapeShift CEO Denies WSJ's Recent Analysis On 'Dirty Money'.

2018-10-02 | Eddy Morgan

ShapeShift CEO Denies WSJ's Recent Analysis On 'Dirty Money'.

Crypto exchange ‘ShapeShift’ has denied to a recent Wall Street Journal report that $9 Mln illegally went through the exchange, in line with a recent official announcement revealed by the exchange.

According to recent report by the Wall Street Journal an article namely [How Dirty Money Disappears Into the Black Hole of Cryptocurrency], stating that around $88.6 Mln fraudulently obtained funds had been funnelled through several crypto exchanges, whereby $9 Mln was laundered through a popular crypto exchange platform namely ‘ShapeShift’. Analysing the transactions of ShapeShift, WSJ reportedly downloaded and analysed a list of the latest fifty transactions every 15 seconds, at the exchange’s web-site.

In the web blog post, ShapeShift’s founder and CEO 'Erik Voorhees' confirms that the exchange team had been working with the WSJ journalists for the past 5 months, however under false pretenses, as data provided by the exchange was reportedly misinterpreted or omitted.

In its article, WSJ mentioned the bad actors took advantage of ShapeShift’s user obscurity, changing Bitcoin [BTC] into the supposedly untraceable cryptocurrency Monero. Voorhees parried accusations, stating that the exchange has a self anti-money laundering [AML] program that deploys blockchain forensics that are much more advanced than asking somebody for his or her name and address’.

Vorhees adding further stated that WSJ “forewent an opportunity to forestall potential illicit activity” in their news practices. The web blog post further reads that WSJ withheld gathered information on suspicious accounts in order to make their story trending. In doing therefore, WSJ purportedly failed to report suspicious activity to any concerned exchanges, icluding ShapeShift, so that they may straightaway block the accounts.

According to the exchange’s CEO, the claims confirmed by WSJ are factually inaccurate and deceptive. He even added that WSJ authors fail to have a decent understanding of blockchain and therefore the method on which ShapeShift operates specifically. The web blog post claims that WSJ reporters erroneously scan records of token transfers to such a degree that they lawfully attributed seventy thousand dollars of dirty money to the exchange.

Adding further he said:

“$600 USD of suspicious funds were sent to an exchange that probably was not ShapeShift. As ShapeShift happens to be a client of this same exchange — ten months later during a utterly unrelated group action — the exchange sent funds to ShapeShift. The authors didn’t perceive the way to properly scan the blockchains transactions, in order that they assumed there was $70k in “dirty money” sent to ShapeShift.”

Vorhees concludes the article by adding that we are attempting to pioneer a brand new economic system, and that we don’t expect to be loved by the proponents of the old. Explaining further, he states:

“We’d would counsel WSJ for modifying their title to be additionally more accurate, correct and objective, ‘Less than two tenths of 1 % of ShapeShift’s business may be illicit.’”

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