Bitcoin critics are known to focus more on the laundering cases associated with the cryptocurrency than its merits, relegating the fact that traditional fiat institutions and banks promote even more of these cases than digital assets.
A backing proof of this undeniable fact is a recent development in which a leading financial services company, Credit Suisse, has been found guilty of allegedly participating in a fundraising scandal.
The Swiss bank is expected to pay a fine worth millions of dollars for illegally looting money from the east African country, Mozambique.
Credit Suisse’s Role in the Laundering Conspiracy
Going on for some years now is an investigation into a money laundering case that Credit Suisse allegedly played a role in. In 2016, some companies were supposedly given a contract to create a new coastal patrol force and provide tuna fishing boats to Mozambique.
After signing the contract deal, the Mozambique government revealed that it had guaranteed about $2 billion of its loans. Hence, the International Monetary Fund (IMF) along with a group of donor countries discontinued their financial donations and support.
The companies, however, saw the contract as an opportunity to enrich their pockets and decided to embezzle the funds, “partnering” with Credit Suisse to help them facilitate their illegal act.
Unfortunately, the loot negatively affected Mozambique, driving the country’s economy into a severe crisis. The nation defaulted on $727 million of bonds in February 2017 and its currency spiked, sparking a surge in inflation.
After conducting several investigations into the money laundering matter, Swiss prosecutors were said to have found Credit Suisse guilty of playing an active role in the case. The bank will pay $400 million as a fine for the misconduct.
The recent development is yet another perfect reminder that fiat currencies are susceptible to similar laundering cases such as bitcoin, as both can be used by criminals.
In fact, disregarding critics’ claims of bitcoin being the constant victim of fraud practices, the recent development comes barely two weeks after major British retail and commercial bank, NatWest, pleaded guilty to charges of failing to comply with anti-money laundering compliance and facilitating the laundering of a whopping $554 million by its client.