The Wall Street Journal had been in the news all September last year due to its thorough revelation that claimed $9 million was laundered by the crypto exchange platform Shapeshift.
Erik Voorhees, CEO of Shapeshift, was quick to deny the accusation and countered by requesting that the blockchain analytics firm CipherBlade investigated the matter. Via a post on March 20th, the intelligence concluded the investigation by accusing the WSJ of defamation and established that it had overestimated the extent of laundering.
Breeding Controversy of its Own
However, Pawel Kuskowski, CEO of Coinfirm, said there’s no definite answer to how much may have been laundered through the platform – because ShapeShift has not been performing Know-Your-Customer (KYC) identity checks since last October.
Analysts have also been swift to point out the fact that CipherBlade’s reports were fixated only on valeting via Ethereum (ETH) paths but did not examine Bitcoin-related data used by the Wall Street Journal. Also, even though CipherBlade concluded otherwise, reports concerning crypto platform risks have classified ShapeShift as “high risk.”
Shapeshift’s Changing Mechanisms
Conversely, ShapeShift has revamped its procedures like sign-up and KYC and have received support from CipherBlade who further stated that in no way ShapeShift assists money laundering and were rather supportive of the investigation throughout.
As for ShapeShift’s segment, Voorhees has a steadfast belief that WSJ’s investigative techniques were defective and after CipherBlade’s report, he went ahead and requested the Journal to withdraw the story.
To sum up, it is pretty clear that CipherBlade’s quest to bare the truth has thrashed the vanilla outlook of many monetary media and their crypto coverage and has also encouraged the sheer dishonor that tainted ShapeShift ever since the accusations, to elevate.
Image: dennizn / Shutterstock.com