World Crypto Global
- Written by: Damian Chmiel
- Mon, 13 May 2024
- Israel
TheCommodity Futures Trading Commission (CFTC) has issued a stark warning, includingcryptocurrencies, to students and young job seekers: beware of becoming anunwitting "money mule."In a recentadvisory, the CFTC's Office of Customer Education and Outreach (OCEO) cautionedthat criminal organizations target young people with seemingly easy,stay-at-home job offers that involve moving money through bank accounts ordigital wallets.Money Mules and CryptoWarningAlthoughthe CFTC's warning primarily concerns the phenomenon of "moneymules," it largely also pertains to cryptocurrencies. The agency suggeststhat their decentralization and anonymity make them frequently used forpotentially illegal transactions. "Duringthis year's Money Mule Initiative campaign, the U.S. Department of Justicereported that agencies took action against more than 3,000 money mules,including criminal charges against 24 individuals," CFTC stated in itsannouncement. Accordingto the CFTC description, unwitting individuals are asked to transfer fundsbetween cryptocurrencies or blockchains, helping criminals avoid detection andexposing themselves to legal consequences. "Anestimated $75 billion has moved through digital wallets connected to thesefrauds," noted CFTC, citing a University of Texas study. "Lawenforcement is getting better at tracing and seizing stolen assets onblockchains, so criminals are motivated to 'off-ramp' or convert their tokensto dollars, and may recruit unwitting accomplices to do so.".@CFTC released a new customer advisory to warn students and jobseekers from becoming Money Mules. It recommends refusing requests to send/receive money to their bank accounts or crypto wallets as work duties. Read the advisory: https://t.co/s5VY4Rnlaj #MoneyMuleInitiative pic.twitter.com/wbjHhpZoxH CFTC (@CFTC) May 13, 2024How the Money Mule ScamsWorkThe joboffers often appear straightforward - set up accounts, send or receive funds,convert dollars to crypto-assets, or buy and deliver goods. In return, the"employee" keeps a portion of the money. However, in reality,transnational crime rings are using these unsuspecting individuals to obscurethe trail of funds obtained through fraud, human trafficking, drug sales, andother crimes.Besidesfake job postings, the CFTC warns that some may be roped in thinking they arehelping an online friend in need but are actually victims of "pigbutchering" - a type of romance or confidence scam used to fuel moneylaundering networks. Common red flags include:"Off-ramping":Converting crypto-assets sent to your digital wallet into dollars to sendelsewhere"On-ramping":Using cash to buy crypto, often at a Bitcoin ATM, to forward to another wallet"Smurfing":Receiving a large sum of crypto and sending smaller amounts to multiple walletsAnother day, another regulatory advisory that's focused on #crypto. This time it's money mule scams. I look forward to the day when our tech isn't immediately & wrongfully associated with bad actors. https://t.co/9zuvAwj0lV Katherine Kirkpatrick Bos (@kkirkbos) May 13, 2024Steep Consequences forParticipantsWhile somemoney mules are knowing accomplices, many are unaware they are facilitatingcrime. But the CFTC underscores that participating in money laundering, evenunwittingly, can lead to criminal charges and destroyed trust in one'sidentity.Youngpeople looking for summer jobs may be just looking for part-time income andcould be attracted to offers that require being online a few hours a day, saidMelanie Devoe, the director of OCEO. Unfortunately, they could becomeunwitting accomplices to money laundering or what the criminals call moneymules, and that association could land them in jail.The CFTCadvises that if approached online to move money, immediately ceasecommunication. If you've already received funds from someone met online, notifyyour bank and consider changing accounts. Most importantly, do not forward themoney and immediately alert the authorities, including filing reports with thepolice.Last month, the CFTC, together with federal prosecutors, took another crypto action and charged KuCoin and two of its founders with breaching anti-money laundering (AML) regulations. The charges state that KuCoin was functioning within the United States without the necessary registrations and did not uphold a sufficient AML program.This article was written by Damian Chmiel at www.financemagnates.com.
