After Slamming Bitcoin As A Money Laundering Tool, JPMorgan Busted For Money Laundering

Tyler Durden's picture

Score one for the poetic irony pages.

Two months after JPMorgan CEO Jamie Dimon lashed out at bitcoin, calling it a "fraud" which is "worse than tulip bulbs, warning it won't end well", will "blow up" and "someone is going to get killed" and threatened that "any trader trading bitcoin" will be "fired for being stupid" as it was merely a tool for money-laundering, today Swiss daily Handelszeitung reported that the Swiss subsidiary of JPMorgan was sanctioned by the Swiss regulator, FINMA, over money laundering and "seriously violating supervision laws."

As the newspaper adds, the Swiss sanctions relate to breaches of due diligence in connection with money laundering standards. In other words, JPMorgan was actively aiding and abeting criminal money laundering.

The report further notes, the Finma decision was issued on June 30 and should have been published the following week but JPMorganm tried to prevent the publication of the judgment. More recently, the Federal Administrative Court dismissed the appeal.

In response to money-laundering violation, JPM said that in support of safety and soundness of global monetary system, “we have made and continue to make significant enhancements to the firm’s AML program to ensure we are meeting regulatory expectations,” according to an emailed statement sent to Bloomberg.

Unfortunately, JPMorgan also said that it can’t, or rather won't, provide further details since the Finma resolution from June 2017 isn’t public.

This means that anyone wondering if Jamie Dimon's bank was using (and thus trading) bitcoin to circumvent Swiss anti-money laundering regulations, will just have to ask Jamie Dimon in person during his next public appearance.  

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Raffie's picture


HowdyDoody's picture

Jimmie's song:

I'm too big to fail
I dont do jail
I pay the fine
with your money
not mine

TeamDepends's picture

Bankers, you have a choice:  Death, or 50 acres and a mule.  If you choose the latter and don't produce, death.

auricle's picture

At any given moment any of these banks could be closed due to fraud/laundering/embezzlement. Pick your illegal activity because they do it all. Billions are made and millions if any are fined. What would you do if that was you?

If anyone could cheat their taxes and only be fined a fraction of their gains. This is how all banks are run. Are you not outraged? 

bamawatson's picture
speaking of FRAUDS, this video will give you an idea what was occurring nov 7 in a suit filed by lenny pozner ---- "father" of fake 'victim' noah pozner  ---- of fake sandy hoax pozner sued wolfgang halbag for speaking truth; the suit has dragged on for months; yesterday, nov 15, lenny pozner was , at long last, scheduled to be deposed UNDER OATH; the first time ANY of these satanic sub-humans would be under oath; lenny pozner bailed; lenny pozner ran; please let us now rip this scab Wide Open
tmosley's picture

Speaking of fraud closer to on-topic, this article talks about the USDT fraud that has with a great deal of certainty pumped the BTC price up to its current levels:

The author proposes a failure mode for the scheme via US regulator interference, as several of the exchanges that use tether are US based.

This is going to hurt, folks. And not just BTC. All of crypto. I'm sure it will survive, but it will take a long time to come back from this.

BaBaBouy's picture

Banksters will be Banksters ~

tmosley's picture

Tether just increased in supply again. BTC will pump again.

shitshitshit's picture

Excellent article tmosley, thanks!

And as previously discussed, this goes in the sense where all of the BTC price up kabuki was linked to sheer fraud at the exchange level, absent an increase of transactions or wallet numbers at the blockchain level following price fluctuations, as well as the fact that the biggest exchanges cannot get money wired through banks. And of course attention was diverted through stupid news of someone magically reverting the crash buy buying $15Mio last week, whereas the global movement was much higher, or that some miserable south african or american country would inject billions in there. I had good belly laughs reading through these at that time as you may remember.

Therefore price goes up without liquidity injection, which in turn allows some whales to sell on the way up (don't worry for them, they already put their orders to buy back on the coming crashes). Musical chairs to begin when the market becomes exhausted, and of course we'll be served all kind of stupid excuses like zimbabwe, venezuela, ghana, god know which god foresaken place that can sudenly magically inject trillions in BTC market cap, or even broke lala land pension/edge funds liquidating etc.. haha

And of course the long bear market will exhaust even more the small wallets of hobbyists who will trade in the hope of increasing their holdings. We all saw this a few times. It's going to be another version...

Looks like the handy work of the plunge protection team, just like on stock markets...


Buck Johnson's picture

I'm trying to get into buying some of the very very low priced (penny or sub penny) cryptocoins and/or buy into an offer that is about to be released.  I don't mind putting in a few hundred or even a thousand dollars hoping for one of them to shoot up a few bucks and/or go up big time.  How do you do this for one.


The_merovingian's picture

This is not news to me, USD Tether has been under scrutiny for months. USDT is not redeemable for USD.


Stay away from Tether and Bitfinex. This is not going to end well.

shitshitshit's picture

Once the whales/investment banks cash out they will leave the market floating and deflating by itself before panic takes over the muppets who will get badly burnt.

They already gave their limits, which are between 10-12k per BTC. Understand that when they say this, they will cash out well before in order to leave things in order behind them and play plausible denialability while whistling away. They must therefore be starting the harvest right now, hence the exponential increase and infusion of stupid BTC bull market news from countries where nobody can easily verify the facts.

Some will lose their shirts.

BTC is really hotel california: you can check out but you can never leave...

The_merovingian's picture

I have no idea what you’re talking about. I’ve been checking in and out of Bitcoin for years without any problem. Ever heard of P2P markets? Bisq? Exchanges are the easiest and fastest way to buy and sell BTC or to do day trading but are by no means the only way to exchange BTC for fiat. BTC could go on without exchanges and simply rely on P2P markets without any problem. 

While Tether is a scam and has contributed to inflate crypto prices, it is still irrelevant in the grand scheme of things. We are comparing millions to billions here.

shitshitshit's picture

the idea is very simple: TPTB will not lift the little finger against bitfinex or tehter until the killing fields are full of casualties and class actions start pouring in. This will be the best signal they can send to tell people that cryptos are shit while pretending they did not see it coming. Everything is in plausible deniability.

On top of that, consider that JPM and GS who are balls deep in that game and who make out like bandits will play victim once musical chairs have started and will help prosecute to the fullest possible extent of the law the owners of the exchanges and coins implicated in this ongoing fraud.

In so doing, they will claim damages that will leave those guys poorer than in their tamest dreams, and GS & JPM will inherent consequent wallets, therefore breaking in the whales club.

And then we'll be in for maybe 3-4 years of bear market and lack of liquidities if I'm not too mistaken.

Then the next bull market will open the doors of a new type of fraud. Life is full of surprises, and cryptos are an excellent means of making money when ignoramus and gold diggers flock together...



veritas semper vinces's picture

There is ONLY one hope to regain some normality in this country(maybe the Republic back):

_Kill ALL bankers,destroy the Federal Reserve


Endgame Napoleon's picture

Next verse:

J.P. Morgan board is forlorn

Jamie said not to touch the dirty BitCoin

Saudis pulled the plug on the Petrodollar

They all hear Yellen holler

But Uncle Milton’s money throwing won’t work

This time

Even when six housing bubbles pop

Causing all the balanced portfolios to drop

That bad ole BitCoin was such a reckless flop

tmosley's picture

Don't worry about anyone using BTC to launder money. That would imply some form of movement. Instead, you are just supposed to buy and hold it forever, and brag about how much it is worth while being unable to spend it.

You're not so poor that you can't afford a $10million transaction fee, are you?

0valueleft's picture

Bankcoin, wait what are these fees????

shitshitshit's picture

tmosley, this reminds me of this sturdy propped up by Urope which concluded that bitcoin was marginally used as a means to launder money.

And for a reason, knowing that injecting or getting back money to/from exchanges is extremely painful.

The only solution left is then to lose your money holding the bags, QED.

tmosley's picture

No, cashing out is trivial, even without an exchange. Worst case you can just buy gold. You will lose on that transaction, but it is better than getting stuck with cash on a collapsing exchange or coins that are destined for an 80% haircut.

shitshitshit's picture

cashing out will become exceedingly difficult once the musical chairs will have begun...

remember remember, mtgox...

lickspitler's picture

HeHe Mosley  you loser.

You wouldn't know if Roger Verr was up you.

Oh thats right he was.

blentus's picture

More like 1.2 EUR.

But you wouldn't know that, apparently you're too stupid to actually use Bitcoin.

DaemonMe's picture

Not sure where these numbers are drawn from, but it sure does not resemble anything I've stumbled upon myself when transacting in real life. Transfered my whole stash from a soft to a hard wallet, which took less than 1 h for full confirmation and cost less than 2 EUR less then a week ago. Both segwit enabled wallets, but that's just the next step in BTC's evolution, right?

I for sure am not a proponent of BCH's bigger block sizes as that centralizes mining even more. I am more than willing to wait for the second layer solutions and pay higher fees in the meantime in order to do the scaling issue right the first time. Mind you, second layer solutions are already being not only tested in testing environments, but deployed by wannabe nodes (and their end-user "friends") through the first GUI.

My point is: the future is now. In a decade there will be a whole new monetary/payment ecosystem built, which is a timeframe no-one in their wildest dreams could have hoped for. It was and is worth the wait. We are still in the very early stages in the adoption cycle. If you are in this for the long haul and believe in the new paradigm, the interim price fluctuations are simply a non-issue.

P.S. Comparing the real world usability of ANY other coin with Bitcoin immediatelly disqualifies anyone from a serious conversation. No matter the perceived advantages of other coins (privacy etc.), the main property of each coin is it's security. Without it you could as well hold potatoes or other perishable goods. Bitcoin's network has been tested and attacked more than all the other coins combined and it is still standing, growing ever stronger. No other coin would have survived the attacked BTC faced from BCH the other day. NO OTHER COIN. Meaning that ALL of them still have a hell of a lot of work ahead of them before anyone can truly take them seriously. Keep that in mind when focusing on the secondary properties of coins with a miniscule network and virtually no real life security issues faced as of yet. (writting this while holding quite a substantial investment in IOTA, btw)

tmosley's picture

The disagreement in regards to the properties of these coins is moot, given the revelations about tether fraud. Get out while you can.

IOTA is the only crypto I am planning on holding through this storm.

shitshitshit's picture

I don't know if it's going to be wise to purchase IOTA or any other crypto before the plunge.

I already cashed out a while ago and do not plan to come back in before my target prices are reached, meaning before the near end of bear market.

the thing can go higher and higher as long as there are greater fools, but I have very little trust in market stability, especially considering the price rises that are steeper and steeper, paving the way for even more brutal corrections.

I pity the guys who think about getting balls deep in this market today...


tmosley's picture

I would normally agree with you, but development on the actual use of is is proceeding quickly, and by the time it gets listed on one of the surviving exchanges, I think it will likely be a far more valuable coin than it is today.

Plus it is comprised entirely out of my crypto profits, so it's more like a freebie for me.

DaemonMe's picture

IOTA got listed on China's OKEx (OKCoin) yesterday. It starts trading on Monday. A new market and a large exchange = a lot of short-term upside.

tmosley's picture

Unfortunately, they also deal in Tether.

DaemonMe's picture

It is most likely very early (too early, probably by a couple of years) to be accumulating/holding IOTA given the development phase it is in. There are more mature cryptos out there with better short term potential for price hikes. That being said, I am holding simply because of the fact I cannot make the time to transact regularly and look for smaller windows of opportunity. I'll hold and let the chips fall where they may.

As far as Bitcoin is concerned, there are a great deal of future developments in the pipeline that will have an impact on the price of BTC, including the potential Tether machinations. Exchanges might (and some of them certainly will) go under and take their users and their stashes with them, which will probably have *some* impact on Bitcoin's price. Nevertheless, if you're in it for the long haul and are not trading daily, this is simply not something to worry about. For long-term hodlers, this is a non-issue. As for the daily traders - be warned, as you've said.

tmosley's picture

>too early, probably by a couple of years

I agree with you, but I have a suspicion that it will be difficult to source IOTA until after it has become far more valuable than it is today (from a utilitarian perspective). Development is proceeding briskly, and it seems unlikely to stop because the exchanges trading it have collapsed (99.9% of its volume comes from exchanges reliant on Tether).

Won't be surprised to see decentralized exchanges take the lead as these centralized ponzi exchanges collapse.

Juliette's picture

Come on, this shit is getting old ... I pay 85 USD for every bigger stock position I buy with my normal broker, and then 85 USD again when I sell it. How much do BTC transactions cost for a 50,000 USD lot? Laughable by comparison, I bet.


tmosley's picture

I'm sure you ride a horse and buggy everywhere you go at great expense as well.

If you are presented with two services that do the same thing, one costs a penny to transfer an arbitrary amount of money, the other costs $15, which one will you use?

Also, the $15 is slower, taking an hour to confirm, rather than five minutes.

Raffie's picture

Also - 'Don't do as we do, do as we say'

Justin Case's picture

I thought only China and Russia was corrupt, whhhaaaaa happen? I hear it every day on msm.

The Wizard's picture

Pot calling the kettle black.


Don't go throwing stones in glass houses.

J S Bach's picture

Bitcoin... JP Morgan... the Fed... Goldman Sachs... they're ALL usurers conspiring with - and competing against - one another.  This is precisely why the wise put at least PART of their wealth into precious metals.  Whatever the hell tricks the money lenders/issuers try to play at any moment in history, the gravity and physicality of the metal itself CANNOT be altered, thus possession ensures a retention of one's wealth once the scams/cycles/systems/etc... have played themselves out.

Yes, there will be howls from the bitcoinites about how wonderful their new digital brainchild is... but, the wise know that ANY monetary unit based on nothing more than fragile human trust... will NEVER hold its initial value in the long run.

Justin Case's picture

So once again, it comes back to the basic philosophy behind the question of "value." Are you interested in the value of gold and bitcoin as measured in US Federal Reserve notes? Are they just another commodity to be used to turnaround a quick buck? If so, then by all means, study the charts, look for the patterns, find your opportunities and enjoy the game.

But what if the "value" of gold or bitcoin is not measured in government fiat, but in their own potential as monetary instruments? After all, the US dollar will not outlast the US government (in its current form, at any rate), but gold will and bitcoin might. And if these instruments are not investments but hedges, that changes the meaning of their "value," doesn't it?

J S Bach's picture

I base "value" on reality.  "Dollars", "shekels", "pounds", "bitcoins"... these are all man-made constructs.  Gold and silver (and other rare-earth commodities) are physical things which have a limited presence in the known universe, thus fulfilling their definition of "rare".  "Rare", if deemed valuable, defines worth.  Since the dawn of recorded history, precious metals have held their "worth" in this regard.  So, unless some unearthly event occurs which renders these rare elements "worthless", I would comfortably bank on their retaining their value, thus status, as TRUE monetary units.

GassedUpOldMan's picture

Bitcoin is rare. There will only ever be 21 million Bitcoins.

J S Bach's picture

Show me one... in the palm of your hand.

GassedUpOldMan's picture

I can hold the drive that stores the Bitcoin. What's your point?

J S Bach's picture

When... not if... the time comes that the ultimate controllers of bitcoin decide to deny you access to your invisible currency... you will be at the whims of their "generosity".  Do you feel assured and safe in such a scenario?  Why do you think they mandated - by threat of jail - that ALL privately-held gold during the 1930s be turned in to the government?  History can be a great tool of enlightenment if you choose to learn it.

webmatex's picture

If this crap arrives cash, btc and pm's will be the last frontier in human wealth confiscation

and it gon...

GassedUpOldMan's picture

There are no "ultimate controllers of Bitcoin". You can't be denied access to it unless every computer (in the world) which has a Bitcoin client is shut down.

shitshitshit's picture

given enough dog and pony shows, nothing guarantees that at some point the core bitcoin code will not be "enhanced" to allow more coins to be mined. The power lies on the bitcoin core team which is made of humans who are, in turn, either subject to corruption or infiltration by other organizations.

Also consider that everytime there is a fork this intrinsically breaks the original promise of bitcoin and doubles the number of coins in circulation, even though they are rebranded.

So something will have to give in at some point. The wise takes his profits and gets out of the game when he can, not looking back to avoid being double crossed whilst tempted to double down.