ShapeShift CEO Refutes WSJ Report of Money Laundering Through the Exchange

ShapeShift CEO Refutes WSJ Report of Money Laundering Through the Exchange

Total News – Atlanta, GA 10/02/2018. Erik Vorhees, CEO of altcoin exchange Shapeshift, has refuted Wall Street Journal's report that the exchange is providing a platform to criminals to launder money.

According to the report, it identified $88.6 million laundered through 46 exchanges and Shapeshift has processed nearly $9 million of the suspect funds, more than any other exchange with U.S. offices. To examine the scope of crypto money laundering, the Journal built computer programs that tracked funds from more than 2,500 suspected investment frauds, hacks, blackmail schemes and other alleged crimes that used bitcoin and Ethereum by analyzing the currencies' underlying software.

WJS also stated that "after hackers believed to be from North Korea extorted millions of dollars in the so-called WannaCry ransomware attack on businesses and governments, the criminals used ShapeShift to convert bitcoin into an untraceable cryptocurrency called Monero , security researchers found. For the next year, ShapeShift made no changes to its policy of not identifying its customers, and continued to process millions of dollars in criminal proceeds, according to the Journal investigation."

Erik Vorhees confirmed in a blog post that they worked with WSJ journalists for five months under false pretenses. "Of the many things I communicated with them over the past months, they included not a single statement from those lengthy discussions, preferring instead to include out-of-context remarks I'd made elsewhere", the CEO added.

He also has accused WSJ of omitting relevant information which was shared with them over multiple phone calls, in-person meetings, and emails.

Ultimately, we are trying to pioneer a new financial system, and we don't expect to be loved by the proponents of the old. That's understandable. Yet ShapeShift has always been in favor of complying with the laws of the jurisdictions in which it operates, even though many of these laws are unclear, ever-changing, contradictory, and in some cases ineffective.

We will push forward, and we'd suggest the WSJ change their title to be more accurate and objective, "Less than two tenths of one percent of ShapeShift's business might be illicit."

Erik Voorhees
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