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 [HowDirtyMoney Disappears Into theBlack Holeof Cryptocurrency], stating that around $88.6 Mln fraudulently obtained funds had been funnelled throughseveralcrypto 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 transactionsevery 15seconds, at the exchange’sweb-site.
In thewebblog post, ShapeShift’s founder andCEO‘Erik Voorhees’ confirms that the exchange team had been working with the WSJ journalists for the past5months,howeverunder false pretenses, as data provided by the exchange was reportedlymisinterpretedor omitted.
In its article, WSJ mentioned thebadactors took advantage of ShapeShift’s userobscurity,changingBitcoin [BTC] into thesupposedlyuntraceablecryptocurrency Monero. Voorhees parried accusations, stating that the exchange hasa selfanti-moneylaundering[AML] program that deploys blockchain forensics thataremuch moreadvanced than askingsomebodyfor his or hername and address’.
Vorheesadding furtherstated that WSJ “forewentan opportunityto forestallpotential illicit activity” in theirnews practices. Theweb blogpost further reads that WSJ withheld gatheredinformationon suspicious accounts in orderto maketheir story trending. In doingtherefore, WSJpurportedlyfailed toreport suspicious activity to any concerned exchanges,icludingShapeShift,so that theymaystraightawayblock the accounts.
According to the exchange’sCEO, the claimsconfirmedby WSJarefactually inaccurate and deceptive. He even added that WSJ authorsfail tohave adecentunderstanding of blockchainand therefore themethod on whichShapeShift operatesspecifically. Theweb blogpost claims that WSJ reporters erroneously scanrecords of token transfers to such a degree that theylawfullyattributed seventy thousand dollars of dirty money to the exchange.
Adding further he said:
“$600 USD of suspicious funds were sent toanexchange that probably was not ShapeShift.As ShapeShift happens to be aclientof this same exchange —tenmonths laterduring autterlyunrelatedgroup action— the exchange sent funds to ShapeShift. The authors didn’tperceivethe way toproperlyscanthe blockchains transactions,in order that theyassumed there was $70k in “dirty money” sent to ShapeShift.”
Vorhees concludes the article byaddingthat weare attemptingto pioneera brand new economic system,and that wedon’t expect to belovedby the proponents of theold. Explaining further, he states:
“We’d would counsel WSJ for modifyingtheir title to beadditionally more accurate,correctand objective, ‘Less thantwotenthsof 1%of ShapeShift’s businessmay beillicit.’”