This was one of several rumors he benefited from (and carefully, quietly encouraged). There doesn't appear to be any strong factual basis for it beyond speculation, but it sure helped people believe the insane rewards.
It doesn't really make a ton of sense when you think about it: "Laundering" Bitcoin doesn't really do you a ton of good as you still end up with a bunch of inexplicable Bitcoin, and if you were laundering it a service where people put coins on deposit and then got returns forever doesn't produce the right kind of transaction patterns for laundering.
The laundering is to mixmaster possibly traced coins with new untainted coins so you can cash out ponzi stolen funds or drug money safely. Some of these mixmaster services were charging ridiculous fees in the beginning, but yeah total speculation. Either way this guy is screwed and should've fled while he had the chance.
Comments
This was one of several rumors he benefited from (and carefully, quietly encouraged). There doesn't appear to be any strong factual basis for it beyond speculation, but it sure helped people believe the insane rewards.
It doesn't really make a ton of sense when you think about it: "Laundering" Bitcoin doesn't really do you a ton of good as you still end up with a bunch of inexplicable Bitcoin, and if you were laundering it a service where people put coins on deposit and then got returns forever doesn't produce the right kind of transaction patterns for laundering.
The laundering is to mixmaster possibly traced coins with new untainted coins so you can cash out ponzi stolen funds or drug money safely. Some of these mixmaster services were charging ridiculous fees in the beginning, but yeah total speculation. Either way this guy is screwed and should've fled while he had the chance.