Ripple CLO Says Regulators Are Using Crypto as Scapegoat for Money Laundering

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Ripple CLO Says Regulators Are Using Crypto as Scapegoat for Money Laundering

Stuart Alderoty, Chief Legal Officer at Ripple, recently criticized regulators such as the U.S. Securities and Exchange Commission (SEC) and the Federal Reserve for using crypto as a scapegoat in money laundering issues.

He also stated that traditional financial systems, such as the New York Federal Reserve, have also made millions of dollars in transfers. The Ripple CLO meant that US regulators have always protected banks, despite them facilitating money laundering through their platform and unnecessarily targeting crypto. In a post on the X platform, Stuart Alderoty stated:

“Some say money laundering is a crypto problem. That’s not true. Just ask the NY Federal Reserve, they let hundreds of millions of dollars slip through the cracks.”

Other crypto market players have also criticized lawmakers who target crypto. XRP advocate John Deaton, who won the Republican primary in Massachusetts last week, challenged Senator Elizabeth Warren’s focus on cryptocurrency during his recent interview with WBUR.

Deaton noted that less than 1% of Bitcoin and other cryptocurrencies are used for illicit transactions, a much lower percentage than traditional financial institutions.

On the other hand, he also pointed out that the largest US banks launder between $800 billion and $2 trillion annually, citing data from the UN Office on Drugs and Crime. He highlighted major banks like HSBC, which laundered nearly $900 million for drug cartels, and accused institutions like JPMorgan, Bank of America, Wells Fargo and Deutsche Bank of being the real culprits in global money laundering.

In addition to John Deaton, prominent crypto industry figures such as Kamala Harris backer Anthony Scaramucci and Mark Cuban have also criticized Elizabeth Warren. Scaramucci called her a hypocrite and further referred to Senator Warren and Gary Gensler as the “axis of regulatory evil.”

John Deaton Fights for Crypto

John Deaton addressed Senator Warren and responded further to her comments by clarifying his role in the crypto industry. “When you talk about me, you mention crypto billionaires, but you are clearly confusing me with someone else,” he said.

He further stated that he has served as an attorney who sued the SEC, exposing regulatory capture by crypto billionaires and hedge funds. Deaton also highlighted his involvement in instigating an Inspector General investigation into conflicts of interest at the SEC.

Over the course of three years, Deaton represented 75,000 individual token holders, retail investors, and users as he defended their rights in lawsuits against the US SEC.

Ripple CLO Says Regulators Are Using Crypto as Scapegoat for Money Laundering