The Dutch Fiscal Intelligence and Investigation Service (FIOD) has arrested two men for alleged money laundering with cryptocurrencies.
According to a statement issued by the International Revenue Service on February. 18, the two men were arrested on February. 17 in connection with two separate criminal investigations into money laundering using cryptocurrencies. Both investigations were led by the National Office for Serious Fraud, Environmental Crime and Asset Confiscation.
One of the suspects was a 45-year-old man accused of laundering 2.1 million euros. He supposedly used large purchases with a credit card covered by cryptocurrency that the Dutch tax authorities could not declare on the basis of his income and assets.
He would also have cashed 10,000 euros (almost $ 10,800). Several of his possessions were seized, including three kilograms of gold, 260,000 euros in crypto (more than $ 280,000) bank cards and credit cards, a car and luxury goods such as watches and jewelry.
The other suspect is accused of laundering 100,000 euros (almost $ 108,000). Allegedly he used the cryptocurrency mix service Bestmixer, but the authorities were able to identify the IP address associated with his Bitcoin address.
As reported in May 2019, the Dutch and Luxembourg authorities, together with Europol, concluded one of the three largest cryptocurrency tumblers.
Financial regulators around the world have suggested that there is a link between money laundering and cryptocurrencies several times. Recently, the Central Bank of Russia published a new set of rules for suspicious transactions that broadly categorize each cryptocurrency-linked transaction as a potential money laundering risk.
In an effort to reduce the laundering risk of cryptocurrencies, Swiss regulators have recently adopted new rules that lower the threshold for unidentified crypto exchange transactions from 5,000 francs to 1,000 francs (approximately $ 1,020).