WSPN CEO Austin Campbell said that a recent case of transnational money laundering did not involve cryptocurrency, countering the narrative that digital currencies are primarily used by criminals. Campbell shared his statement on X on October 31.
"This is an absolutely impossible headline," said Campbell. "I was reliably assured by very serious people that only crypto, not the traditional financial system, was used for money laundering. But here? No mention of crypto!"
On October 30, Li Pei Tan from Georgia admitted to conspiring to launder "tens of millions of dollars in drug proceeds" for Mexican cartels, as reported by the U.S. Department of Justice (DOJ). In August, another individual based in Chicago pleaded guilty to participating in the same operation. These individuals reportedly traveled across the United States to collect drug trafficking proceeds and collaborated with co-conspirators in China and other countries to launder the money through a "sophisticated trade-based money laundering scheme involving the purchasing of bulk electronics."
According to Adjunct Columbia Business Professor Omid Malekan, more money laundering occurs within traditional financial systems compared to the crypto industry. However, he noted that cryptocurrency has gained a reputation as "some unique enabler of bad people doing bad things," as reported by Fiat Reporter. Malekan said, "Many of the world’s worst tyrants use America as their piggy bank," adding that financial firms have been caught facilitating money laundering but faced milder consequences.
Dr. Andrzej Gwizdalski from the University of Western Australia compiled data from sources including the United Nations and World Economic Forum. He found that traditional fiat currencies like USD are implicated in approximately $3.2 trillion in illegal activities annually—over 100 times more than the $20 billion linked to cryptocurrencies, according to Oodaloop. Gwizdalski said, "Using crypto for illegal purposes is inherently risky and plainly unwise with every transaction transparently recorded."
Jane Khodarkovsky, a former specialist with the DOJ’s money laundering section, testified last year about blockchain's traceability aiding prosecutors in tracking illicit activities involving cryptocurrency. She said, "What I found as a prosecutor—and my experience is not unique—is that when criminals turn to digital methods, they actually leave breadcrumbs for investigators to follow." Khodarkovsky emphasized that blockchain analytics help investigators trace funds more effectively than traditional payment systems.
Campbell became CEO of WSPN US in October and also serves as an adjunct professor at Columbia Business School and NYU Stern School of Business. His previous role was chief risk officer for Paxos.
