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The full scheme works like this—
- Acquire dirty (criminally-obtained) cash or dirty crypto. You can convert dirty cash into crypto easily by buying peer-to-peer. Deposit this into Wallet A.
- Using a different wallet, Wallet B, mint an NFT and put it up for auction. You might consider paying a small sum of money to have it “sponsored” by a B-tier celebrity to make it seem more legitimate.
- Using the Wallet A, outbid everyone else and buy the NFT. Pay using the dirty crypto.
- Dirty crypto is transferred to Wallet B.
- Repeat this process as many times as desired.
- In the end, sell the crypto legitimately on a cryptocurrency exchange. Declare the crypto as income and pay tax as appropriate.
- If questioned by the authorities, you claim that you mint NFTs and that they were sold genuinely at public auction, purchased by an anonymous buyer.
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