Danish lenders, Danske Bank, is caught up in a big Russian money laundering scandal, in which it illegally handled more money than the whole cryptocurrency market cap put together.
Morgan Creek Digital founder and partner, Mr. Anthony Pompliano, stated the staggering figure on social media last weekend, showing that the exact extent of the banking sector’s current revelation remains a mystery.
It was reported that Danske Bank laundered $235billion through one of its branches in Estonia for about eight years, according to claims. A few days back, the bank appointed an interim Chief Executive Officer who was the leader of its present Danish operations, Jasper Nielsen; this came shortly after the sudden sack of the then boss, Thomas Borgen.
Pompliano commented on Twitter, suggesting the issue should give a new trust to investors in cryptocurrency repressed by criticism of the enterprise or maintained low prices.
He wrote; “REMINDER: A single bank location at one bank laundered more money than the entire market cap of cryptocurrencies. Crypto market cap; $225 billion Danske bank: laundered $235 billion. Long Bitcoin, Short the bankers.”
At press time, the total cryptocurrency market cap is worth about $221 billion according to CoinMarketCap, a little lower than the previous levels produced over the past few days.
Danske bank had at the same time, had previously taken a hostile stance on the use of cryptocurrency. Prior to the money laundering scandal, a stern statement was released by the bank, warning costumers against the adoption of cryptocurrency and even investment in the industry.
With a grim ironic tone, the statement read; “Most importantly, the lack of transparency and regulatory control have made cryptocurrencies a target for criminal purposes, and we know that they on several occasions have been involved in criminal transactions like money laundering or extortion.”
“As a financial institution, we have an obligation to assist in the fight against financial crime and money laundering. At the current stage, cryptocurrencies do not offer the sufficient level of transparency in order for us to live up to our obligations within anti money laundering regulation.”
Unsurprisingly, banks tend to engage in hypocrisy when weighing in on the transparency of cryptocurrency, for instance, Rabobank, the Dutch lender which was involved in a scandal of money laundering involving its transactions in California, normally refuse to open accounts to Bitcoin enterprises stating “compliance risks” as the reason.