8

But lately he has had his friend use my PayPal account. Someone will send me money and then I transfer it to where he tells me. To cash app or venmo. That's money laundering. Definitely illegal. He said it's money owed for cellphones. People in jail aren't supposed to have cellphones. You are helping him break the law, which means you are helping him ...


5

When does it become illegal to exchange bitcoin for cash? When the transaction purposefully skips the controls in place regarding anti-money laundering. Generally speaking, the issue is not the mere involvement of cryptocurrency in a transaction, but the crimes a wrongdoer seeks to camouflage or conceal by means of cryptocurrencies. Such crimes typically ...


3

The applicable law is the New Zealand Anti-Money Laundering law. The regulations describing exactly what is covered don't mention Bitcoin cleaning, but the "wire transfer" and "currency exchange" bits probably cover such a thing. I certainly wouldn't like to be the test case. There was also this case in Europe.


3

Laundering physical money Let's say a career criminal committed a couple crimes and is now in possession of a large heap of money in form of coins and paper currency. They want to use that money to buy themselves a nice house. But showing up with a huge bag of money at a bank or real estate agency would look very suspicious. It is very likely that they will ...


1

does the platform actually has the right to indefinitely hold the monies No. But they do not claim to have such a right though: the ordinary meaning of "suspend" is not "indefinitely hold". A reasonable person would expect the suspension to be temporary — pending any investigation / police inquiry as to whether the funds were actually fraudulent. Such an ...


1

Given that this transaction will not be otherwise found fraudulent/reversed, does the platform actually has the right to indefinitely hold the monies they have no ownership over? Indefinitely: yes; forever: no. Once the fraud investigation is completed the money would be released (if clean) or sent to the true owner (if fraudulent). If the contract is ...


1

I don't think this has been addressed, but: Contact a lawyer You shouldn't trust random people on the internet with this. You feel uncomfortable, and potentially participate in crimes. You should talk to a specialist, talk to a lawyer. That doesn't seem like a very complex problem, but you need a legal advice. There are some non-profits that help with ...


1

Your last paragraph asks for legal advice which is off topic here; you should talk to a lawyer. Having said that: You may not be able to prove you owned the BTC when they were only worth 250 USD, but how far back can you prove you owned them? If you can show you have held them for a while it strengthens your claim. Can you get your friend to testify about ...


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