New Zealand and Digital Proceedings
A calm, peaceful and small country located at the edge of the world. Of course, we are talking about New Zealand. This state rarely appears in our headlines, all because events related to digital currencies happen quite rarely in the country. However, today is a small exception. The country is blocking accounts of a well-known person, possibly a fraudster, Alexander Vinnik. Next, we will tell you everything you need to understand about ongoing litigation and their consequences for the entire industry. So read carefully, the material requires a responsible approach. So let’s get started.
Who is Alexander Vinnik
First of all, it is necessary to discuss the identity of the person with whom New Zealand is suing. If you follow the events of the modern crypto industry, you probably know that the Russian Alexander Vinnik has long been persecuted by the United States. The United States suspects this entrepreneur of illegal money circulation. According to the United States, Vinnik is engaged in dishonest financial transactions, laundering his own funds through cryptocurrency platforms. The United States government also believes that the entrepreneur directly harmed the US economy, so the country put him on the wanted list. At the moment, it is dangerous for a businessman to be not only in America, but also in friendly states. For example, Alexander’s company funds were blocked in New Zealand. There, a businessman worked for a businessman, and, on the suspicion of the United States, unclean money passed through it.
So New Zealand eagerly blocked all of Canton Business Corporation’s accounts at the first request from the United States. It is noteworthy that the country puts forward quite serious charges, in addition to financial fraud. The United States believes that the money that Vinnik laundered came from a variety of illegal activities. Starting with hacking bank cards, and ending with the sale of drugs. Thus, the businessman became a member of this criminal scheme, and must be punished if the allegations are confirmed.
Presumably, the digital exchange BTC-e also participated in the criminal scheme of a Russian businessman. This platform may have helped to exchange illegal currency for Bitcoin and other digital coins, without asking unnecessary questions. However, this has yet to be proved judicially.
Why is blocking accounts important in New Zealand?
In fact, the role of this event is much more important than it seems. Such situations show that the crypto industry is still dependent on the will of the government, even taking into account the principles of decentralization and anonymity. The authorities still have a very simple but effective way of influencing fraudsters. And this is a banal blocking of accounts or sites through which illegal money passes. Thus, the apparent security of cryptocurrencies will not save criminals from punishment. That is why we strongly recommend the use of digital tools in legal and safe operations so as not to doom ourselves to dire consequences.