The fundamental innovation of crytocurrency is that it has distributed, self-organizing recruitment through incentive structure for adoptees
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Replying to @patio11
Now how do you get money into the scam vehicle? Material amounts of money start in the traditional financial system. This is tricky for you.
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Replying to @patio11
As a scammer, you can't just tell Milli Smith to take out a reverse mortgage and wire $800k to an account in the Caymans. Her bank says No.
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Replying to @patio11
So your options are e.g. suborning a listed company and wearing it like a skin suit, then having marks purchase shares of that company.
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Replying to @patio11
This is dreadfully inconvenient, because marks might not have brokerage accounts, and scaling the scam gets it shut down quickly.
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Replying to @patio11
Enter the cryptocurrency ecosystem, which needs one node with plausible deniability and a bank uplink. Controls of other nodes irrelevant.
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Replying to @patio11
The cryptocurrency ecosystem has what strikes participants as a surprising difficulty in maintaining one node with a foot in real finance.
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Replying to @patio11
This is not surprising because that node's economic justification for existing looks a whole lot like money laundering at scale.
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Replying to @patio11
Now for whatever reason this shell game is really successful, and after value is in cryptocurrency ecosystem, it flows from scam to scam.
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Replying to @patio11
Exfiltration! How do you justify to the grownup financial system where your $20 million came from? You can't say "Defrauding Milly."
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So instead you say "Speculation.", which is just enough for the see-no-evil gatekeepers.
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Replying to @patio11
Now how do you avoid going to jail for it? The plan appears to be "Exploit regulatory ambiguity and move as fast as possible."
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Replying to @patio11
With varying level of "Make some sort of plausible excuse that there does exist an actual enterprise and it is not just scams all way down."
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