Bitcoin & Consequence

What does the FBI takedown of a Russian money-laundering organization mean to Vladimir Putin and the man he helped install as U.S. President?

President Vladimir Putin was angry. He kept a group of his key cabinet ministers up until nearly 1 am on a recent Russian morning to lecture them on the country’s crypto-currency sector.

“I can straight-up tell you the president is completely mad about this,” recalls Deputy Prime Minister Igor Shuvalov. “The most significant issues about growth revolve around the digital economy and technological leadership,” Shuvalov told a bitcoin conference in St. Petersburg.

Putin has reason to be worried. Oligarchs have syphoned $335 Bn out of Russia since 2005. Putin himself is believed to be worth $200 Bn. When you’re stealing that kind of money, you need a fast and effective way to launder it and bitcoin is perfect for that type of money-laundering. The crypto-currency’s anonymity and global reach also makes it ideal for Russia’s interference campaigns in foreign elections.