Credit Suisse data leak reveals shady activities in over 18,000 accounts

The critics of the cryptocurrency sector usually base their arguments on the use of cryptocurrencies for illicit activities. However, a recent data leak on Credit Suisse shows that money laundering in the traditional financial sector dwarfs what is reported in the crypto sector.

Credit Suisse is one of the largest banks in Switzerland, and the recent data leak revealed accounts worth over $100 billion held by sanctioned individuals, heads of state and other top officials accused of money laundering.

Credit Suisse accused of enabling money laundering

A report from New York Times shed light on the leaked data that involved over 18,000 bank accounts at the institutions. These accounts were opened between the 1940s and 2010s.

Some of the shady accounts at the bank include those of the former vice-minister of energy in Venezuela, Nervis Villalobos and King Abdullah II of Jordan. The latter was accused of using financial aid for his personal businesses. Villalobos admitted to money laundering offences in 2018.

“Other account holders include sons of a Pakistani intelligence chief who helped funnel billions of dollars from the United States and other countries to the (Mujahideen) in Afghanistan in the 1980s,” the publication added. Credit Suisse has denied any wrongdoing.

Credit Suisse is not the only big player in the traditional financial sector to be accused of illicit transactions. HSBC, a leading financial institution globally, was forced to pay heavy fines after being accused of holding accounts for international criminals.

Issue sparks debate in the crypto community

The association of international banking institutions with illicit dealings is an irony for the crypto sector that has been accused of facilitating money laundering. A recent report from Chainalysis said that around $25 billion worth of crypto transactions were linked to criminals. However, this is just a quarter of the $100 billion shady accounts at Credit Suisse.

The lead developer at Yearn Finance, a decentralized finance (DeFi) protocol, retweeted the data leak on Credit Suisse, saying, “Credit Suisse AML happily hosted human traffickers, murderers, and corrupt officials.”

Moreover, blockchain technology has been touted as more transparent because law enforcement can track and monitor transactions in real-time.

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