Ben Armstrong, known as BitBoy, recently shared crucial insights on cryptocurrencies in his latest video. His revelations on the darker side of digital assets have significant implications for both enthusiasts and regulators. The CoinSpeech team has collected the most important takeaways from his recent appearance. You can find Ben Armstrong’s new video below.
The Criminal Connection: Tether and Tron
According to Ben Armstrong, “the overwhelming majority of the crypto funding that Hamas has used has been through tether and the Tron Network.” This statement highlights a significant misuse of stablecoins, designed to bridge cryptocurrency and traditional finance.
International Sanctions and Evasions
Armstrong spotlights that both Hamas and Russia exploit Tether to “circumvent International sanctions” and fund their respective operations. These developments present a critical challenge for global financial security, as traditional methods of regulation fall short in the decentralized world of crypto.
Crypto Exchanges Under Scrutiny
A report from Inca Digital revealed that “79 International crypto platforms,” including major exchanges like Binance and Bybit, have turned a blind eye to sanctioned Russian users. Armstrong states, “They’re making it easy” for these users to exploit loopholes and avoid financial restrictions.
Patterns of Illicit Use
Armstrong also delves into the growing popularity of Tether among cybercriminals. He explains, “Tether’s stability, ease of use, and low fees have made it a favorite for money launderers.” The process involves multiple stages, including conversion, layering, and integration, which obscure the money trail and complicate law enforcement’s efforts.
Regulatory Gaps and Challenges
Jeremy Douglas of the UN’s office on drugs and crime emphasized, “Cryptocurrency regulations are way behind or practically non-existent.” Armstrong concurs, stressing that “we must make sure that crypto platforms play by the same rules as other financial institutions” to tackle illicit finance effectively.
Lawmakers on the Move
Armstrong highlights ongoing efforts by legislators to close the regulatory loopholes in crypto. He reveals that he has personally visited Tether’s headquarters to see their operations, underlining, “It isn’t the company itself that is using the stablecoin illegally; it’s criminals who are using it as a tool for illegal transactions.”
Technological Innovations Amidst Chaos
Despite the controversies, Tether continues to innovate. Armstrong notes their recent launch of a new token minting platform called Alloy, which allows users to create tokens collateralized by Tether’s tokenized gold. “This move is part of Tether’s efforts to expanded services beyond USDT,” he observes, marking a significant step in the evolving crypto landscape.
Armstrong’s insights provide a stark reminder of the complexities and challenges in the burgeoning world of cryptocurrencies. As regulatory bodies scramble to catch up, the crypto community watches closely.