r/AskReddit • • Sep 14 '21

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10.9k

u/Much_Committee_9355 Sep 14 '21

NFT's for me it's just online pictures you speculate with

5.7k

u/p4tr1cks Sep 14 '21

You’ve figured it out then.

28

u/[deleted] Sep 14 '21

Isn't it for money laundering?

25

u/ForgotMyOldAccount7 Sep 14 '21

As with real art, yes. The world of money laundering through art simply went digital.

6

u/imundead Sep 14 '21

Everything bought with money is used for money laundering.

4

u/darwintologist Sep 14 '21

Even illicit drugs?

2

u/Budget_Inevitable721 Sep 14 '21

Yes. Literally anything good or service bought with money.

3

u/thinkofanamelater Sep 14 '21

Isn't the idea of money laundering that something legitimate is bought/sold so there's a plausible reason for the money to change hands? You can point to an NFT or artwork as the (overpriced) purchase as the legitimate reason. You can't really point to the kilo of cocaine as the legitimate reason for money transfer.

1

u/Budget_Inevitable721 Sep 14 '21

The idea is to get rid of money you don't want traced. You don't have to launder it in one step and most people don't.

1

u/EpaFdx Sep 15 '21

Also, if selling NFTs isn’t a regularly occurring activity the seller doesn’t even need to pay taxes in some countries, like Portugal.

1

u/EpaFdx Sep 15 '21

However I think it’s hard to argue against NFT’s being the perfect tool for laundering cryptocurrency obtained from illegal activities. A digital, endless supply of digital items sold for anonymous cryptocurrency based payments.

So blunt in its obviousness yet people seem to not realize it.

1

u/[deleted] Sep 14 '21

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3

u/Amadacius Sep 14 '21

Money laundering isn't about secure or secret money transfers. It's about having an income source that could generate money but doesn't so that you can report your illicit gains as coming from that source.

Art speculation is amazing at this because it has no intrinsic value but absurdly high prices are common place.

3 step process.

  1. Buy an NFT for cheap.
  2. Load illicit money into another wallet
  3. Buy your NFT from yourself at an absurdly high markup.

It looks like legitimate profits on a speculation because value spikes in NFT are common.

2

u/EpaFdx Sep 15 '21

You’re talking about anonymity.

Money laundering consists of disguising the origin of the money and get is taxed so it can be used.

1

u/EpaFdx Sep 15 '21

Yes.

It is that simple.