Crypto News- In its latest revelation, Nasdaq, the stock exchange giant, has laid bare the unsettling truth about global financial crime in its comprehensive “Global Financial Crime Report.” Notably absent from the report were any references to Bitcoin (BTC) and other cryptocurrencies, leaving many to reinforce the age-old belief that cash, or fiat currency, reigns supreme in the realm of facilitating criminal activities.
Global Financial System Sees 3.1 Trillion Dollars Illicit Funds Flow in 2023, Nasdaq Reports
The report serves as a stark reminder that financial crime persists as a pervasive and formidable challenge, amounting to a “multi-trillion-dollar problem.” Nasdaq’s estimate for 2023 indicates a staggering $3.1 trillion in illicit funds coursing through the veins of the global financial system. Money laundering emerged as the primary enabler, fueling a host of criminal activities, including human and drug trafficking, as well as terrorist financing.
Within this ocean of illicit funds, Nasdaq’s discerning eye identified $782.9 billion linked to drug trafficking, while human trafficking accounted for $346.7 billion. Shockingly, the report uncovered $11.5 billion earmarked for terrorist financing. Fraud scams and bank fraud schemes collectively devoured $485.6 billion in 2023.
Tether CEO Urges Collaboration as Nasdaq Exposes Global Financial Crime Wave
Nasdaq’s Chair and CEO, Adena Friedman, underscored the enduring commitment of financial institutions in combating fraud. Friedman emphasized the collective responsibility shared by individuals, companies, industries, technologies, and governments to address the intricate challenge of financial crime. She acknowledged that no solitary entity can resolve this complex issue in isolation.
In response to the report, Tether CEO Paolo Ardoino expressed deep concern about the multitrillion-dollar financial crime epidemic. Ardoino echoed the sentiment of multilateral cooperation as the key to success in thwarting illicit activities. Tether, he affirmed, is actively collaborating with law enforcement globally to freeze addresses and wallets associated with criminal activities. Ardoino urged legacy institutions to follow suit.
Interestingly, the Nasdaq report did not make any references to Bitcoin, cryptocurrencies, or stablecoins. Gabor Gurbacs, Director of Digital Assets Strategy at VanEck, seized upon this omission, pointing the finger at banks and institutions as the “main conduit” for criminal activities. It remains a critical call to action for the entire financial ecosystem to unite in the fight against financial crime, as Nasdaq’s report serves as both a wake-up call and a rallying cry for global cooperation.
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