ShapeShift CEO Erik Voorhees Refutes WSJ Reports of ‘Dirty Money’

Crypto change ShapeShift has refuted WSJ reviews of it getting used to launder $9 million.

Cryptocurrency change ShapeShift has refuted a latest Wall Street Journal report that $9 million in ill-gotten funds went by the change, based on an announcement revealed October 1.

On September 28, WSJ launched an article dubbed “How Dirty Money Disappears Into the Black Hole of Cryptocurrency,” alleging that $88.6 million in fraudulently obtained funds had been funnelled by 46 crypto exchanges, whereby $9 million was laundered by ShapeShift. To analyze ShapeShift transactions, WSJ reportedly downloaded and saved an inventory of the 50 newest transactions each 15 seconds, on the change’s web site.

In the weblog publish, ShapeShift’s founder and CEO Erik Voorhees confirms that the change group had labored with WSJ journalists for 5 months, however “below false pretenses” as info offered by the change was reportedly misrepresented or omitted.

In its article, WSJ states that dangerous actors took benefit of ShapeShift’s person anonymity, changing Bitcoin (BTC) into the purportedly untraceable cryptocurrency Monero. Voorhees parried accusations, stating that the change has an inside anti-money laundering (AML) program that deploys “blockchain forensics which might be much more superior than asking somebody for his or her ‘identify and address’.”

Vorhees additional states that WSJ “forewent an opportunity to stop potential illicit exercise” of their reporting practices. The weblog publish reads that WSJ withheld gathered knowledge on suspicious accounts “with a purpose to construct their story.” In doing so, WSJ supposedly didn’t report suspicious exercise to the suitable exchanges, together with ShaheShift, so they might instantly block the accounts.

According to the change’s CEO, the claims made by WSJ are “factually inaccurate and misleading,” and that WSJ authors didn’t have a ample understanding of blockchain and the way in which ShapeShift operates particularly. The weblog publish claims that WSJ reporters mistakenly learn data of token transfers to such a level that they wrongfully attributed $70,000 of “soiled cash” to the change:

“$600 of suspicious funds had been despatched to an change that wasn’t ShapeShift. Because ShapeShift occurs to be a buyer of this identical change — 10 months later in a totally unrelated transaction — the change despatched funds to ShapeShift. The authors didn’t perceive correctly learn the blockchains transactions, in order that they assumed there was $70ok in “soiled cash” despatched to ShapeShift.”

Vorhees concludes the article by saying that “we are attempting to pioneer a brand new monetary system, and we don’t count on to be beloved by the proponents of the previous.” He states:

“We will push ahead, and we’d counsel the WSJ change their title to be extra correct and goal, ‘Less than two tenths of 1 % of ShapeShift’s enterprise may be illicit.’”

Original supply: https://cointelegraph.com/news/shapeshift-ceo-erik-voorhees-refutes-wsj-reports-of-dirty-money

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