Using crypto as a means of money laundering is gradually becoming a thing and countries are not taking regulations against it lightly. An Abu Dhabi court in this light has sentenced nine individuals to jail.
A criminal court in Abu Dhabi convicted nine crypto money launderers to a decade in prison and punishment of Dh10 million apiece.
Along with the individuals, over six companies have been found guilty of allegations of crypto money laundering.
The scheme amassed a total of Dh18 million in monies taken from the victims. Except for the second defendant, all of the defendants will be deported to their home countries after serving their sentences.
Companies that were complicit in the crime are also liable for a Dh50 million fine. Meanwhile, the authorities have seized all stolen monies and assets.
According to the Abu Dhabi Judicial Department (ADJD), the Abu Dhabi-based crypto money-laundering scheme began with a defendant from another country.
This person would approach inexperienced and ambitious crypto investors and persuade them of his expertise in the field, allowing him to invest in the crypto market at very profitable rates.
The victims were asked to transfer their funds, which was followed by an obligatory tax that had to be paid before the profit amounts could be obtained.
They transferred the funds to a UAE-based shell firm, from which the defendants transferred a significant percentage of the funds to bank accounts located outside the UAE. When one of the potential victims reported suspicious activity, the racket was discovered.
Anti-Money Laundering (AML) policies are becoming more stringent around the world as the number of crypto money laundering schemes grows. A cryptocurrency element was recently included in the EU’s proposed Anti-Money Laundering (AML) legislation. T
Korea, like the EU, has revised its anti-money laundering rules to target crypto money laundering organisations.