This is what happens when reporters tell stories about topics in which they have no expertise: crypto is again put in a bad light.
Have you already heard of Cash4ps? There was a lot of attention for this crypto service last week. It would have been used by Popular Resistance Committee (PRC), an extremist group in Gaza.
Several articles claimed that a wallet belonging to Cash4ps was used in its totality to finance the PRC. In reality, it was only about certain transactions. Ok, you could say, this is just a matter of semantics, but I do not agree with this. In my opinion, there is a big difference.
It is of course known that terrorists use crypto to finance their criminal activities. Services with a lax Know Your Customer (KYC) policy are especially popular for this. This allows them to transfer money under the radar. But it is impossible to say that all transactions via this type of service, such as Cash4ps, are therefore illegal. In itself, this story is no different than bad actors who use traditional financial institutions to launder money. Just look at HSBC. They helped launder some serious cash from Mexican and Colombian drug cartels. Of course, many ordinary mortals are also a customer of this bank.
Do companies have to address their shortcomings? Of course. But to bring about real change, one that benefits both the customer and the crypto industry, it is important to correctly report on current issues and not tend to sensationalize. I guess we want neither to play down nor sensationalize the problem. But now that the Cash4ps story's gone viral, the only doubt being cast is on the credibility of the crypto industry. There is just too much room for interpretation. For example, if a reporter really takes the time to understand an issue, it is a lot harder for a company to tell tales on their own and thus postpone real change.
Reporters now often have to report on topics they don't understand. In addition, there are limited budgets and tight deadlines. I certainly don't want to throw rocks here. But this story is representative of a larger knowledge gap, one that will not be solved overnight. As you all know, crypto is not immediately the most accessible theme. Hopefully, this gap will be filled quickly, otherwise, crypto may be constantly put in a bad light.
For more information, I highly recommend you to view this Twitter thread from Chainalysis!
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