In Geoff White’s book, ‘Rinsed: From Cartels to Crypto: How the Tech Industry Washes Money for the World’s Deadliest Crooks,’ he delves into the world of money laundering and explores the symbiotic relationship between technology and criminal activities. White raises the question of what one would do with sudden wealth that cannot be admitted to and introduces the concept of money laundering as the answer to this dilemma.
According to White, money laundering involves three stages. The first stage is “placement,” which refers to the process of integrating illicit funds into existing financial systems. The second stage is “layering,” where the illegitimate money is mixed with legitimate cash to make it harder to trace. Finally, the third stage is the “new availability” of the laundered money.
White emphasizes that money laundering is essentially changing the history of the money. It allows criminals to enjoy their ill-gotten wealth while hiding its origins. He also highlights how technology has inadvertently facilitated money laundering by providing the attributes that launderers seek.
The book provides numerous examples of money laundering, such as Nigeria’s ‘Yahoo Boys’ who utilize free email accounts and the dark web platform Hydra, often referred to as the “eBay or Amazon” of the criminal world. White points out that the rise in cybercrime has made it easier to move money illegally.
White further illustrates the sophistication of modern money laundering with the example of the $625 million crypto-heist from Sky Mavis, a Singaporean gaming company. The use of autonomous mixing technology in this case made it a “perfect technocratic crime,” as there was no controlling owner overseeing the process.
One aspect that makes money laundering increasingly attractive to criminals is the minimal upfront investment required. Unlike the drug trade, where smugglers need to purchase the product and put up money, fraudsters can engage in money laundering with little to no upfront costs. White quotes a police officer who compares the commodity being sold in fraud to “BS – cheap, abundant, infinite.”
Looking into the future, ‘Rinsed’ predicts challenging times ahead in the fight against money laundering. White suggests that as money launderers become more adept at their craft, crime of all types will be enabled. The advancements in technology and the ever-evolving methods of money laundering create a dark vision for the future.
In conclusion, ‘Rinsed’ sheds light on the intricate world of money laundering and its connection to the technology industry. Geoff White’s exploration of the three stages of money laundering, the unintended facilitation of technology, and the potential challenges ahead provides readers with a deeper understanding of the topic. By incorporating real-life examples and expert insights, ‘Rinsed’ offers a comprehensive examination of the complex issue of money laundering in the modern era.
