Research: Criminals set their eyes on bitcoin mining and conduct money laundering by cooperating with designated mining pools and miners
BlockBeats: Recently, researchers from blockchain Research Laboratory in Hamburg, Germany have proposed a new method of money laundering on blockchain: "exclusive mining".
According to Dr Elias Strehle block chain research laboratory and the university of Hamburg builder Ante in a paper published on Friday, exclusive mining way of money laundering is how it works: "someone to trade through private channels, and to give a single ore miners or pool to confirm and receive encrypted exclusive rights to the money as a reward. These are added to the block in the chain, just like regular trading."
This is different from what usually happens: if someone makes a Bitcoin transfer, everyone on the network can try to mine bitcoin in order to get their Bitcoin reward.
Imagine a dark web drug baron who needs to launder millions of bitcoins. The person would then have to send some of the bitcoins to exclusive miners under his control, who would then charge exorbitantly high transaction fees.
The exclusive miners then exchange the bitcoins they received for processing the expensive transaction into cryptocurrency exchanges and convert them into legal tender. It looks legitimate because its revenue comes from bitcoin mining. Then the exclusive miner gives the legal tender to the Mafia boss.
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