We are talking about financial secrets related to offshore companies of celebrities, politicians and people of big capital.
Pandora Papers are a leak of nearly 12 million "confidential" documents, nearly three million images, and more than a hundred million emails from more than 14 different sources. We are talking about financial secrets related to offshore companies of celebrities, politicians and people of big capital. Some of these people face accusations of corruption, money laundering and tax evasion. Among the names involved, we have the “Bitcoin czar". Who is the “Bitcoin czar"?
The International Consortium of Investigative Journalists (ICIJ), based in Washington, D.C., obtained this data. In fact, more than 140 media organizations have been working on this investigation. That leak outperforms the Panama Papers. Indeed, it is the greatest in history. More than 300 politicians are involved in this scandal. King Abdullah II of Jordan reportedly used an offshore company to purchase real estate in the United Kingdom. But he's not the only one on the list. The president of Ecuador, Guillermo Lasso, appears. Sebastian Piñera from Chile. Luis Abinader from Dominican Republic. Andrés Pastrana and Cesar Gavidia from Colombia. And many more. From the world of show business, sports and culture, we have the Colombian singer Shakira, the model Claudia Schiffer, the Peruvian writer Vargas Llosa and the Argentine footballers, Ángel Di María and Javier Mascherano, among others.
I understand volatility: What is it? How does it work?
What does “offshore”mean?
"Offshore" means: based in other countries. But it refers specifically to countries or territories where it is easy to set up businesses, there are laws that protect the identity of business owners, and taxes are very low or zero. What are these destinations? Well, there's no definite list. But the most popular destinations are The Cayman Islands, The Virgin Islands, Switzerland, Singapore, Panama…
Is it illegal?
No. Well, not necessarily. It all depends on the laws in your country of residence. However, it could be said that it is perfectly possible to be in these tax havens for legitimate reasons. The reasons can be many. Legal security, cyber security, privacy, diversification, tax benefits, etc. In fact, it could be said that appearing on this list does not automatically make you a criminal.
Is it ethical?
Let's talk a little bit about taxes. It is possible to pay very few taxes through legal channels. That's no secret. The law, in most countries, provides for tax exemptions. In other words, it is possible not to pay taxes through legal channels. On the other hand, in most cases, it is also possible to have money in other jurisdictions. Is it ethical to use the law to avoid paying taxes? In my opinion, it is perfectly valid. However, some people suggest that this goes against the spirit of the law. I don't know. That's a debate you can have. In short, “Offshore " is not synonymous with illegality. However, many criminals use offshore companies to launder their money. Investigations must take place on a case-by-case basis, person-to-person.
Will Bitcoin be worth $ 500,000? When?... I just don't think so.
In many cases, the law allows you to have an offshore company registered in some tax haven. However, that should usually be declared. That is the sin of many on this list. Many did not testify. Which raises doubts about where the money comes from. I'm talking about doubt and not guilt. Does a businessman have the right to protect his property against a corrupt dictatorship? We must remember that illegal is not always immoral and moral is not always legal.
The”Bitcoin czar"
Now, there are cases of cases. The "secrets" revealed in this leak can help in many investigations. We must mention the Carbanak case. This refers to a series of thefts that took place between 2013 and 2017. According to Europol, this gang of cybercriminals managed to penetrate 100 banks in 40 countries stealing about USD 1,200 million in total. The press called this operation”the biggest digital heist in history."
Denis Tokarenko, the Bitcoin czar, the alleged leader of the band, was arrested by the Spanish National Police in March 2018, with some 15,000 btc (more than 162 million for the time being) in his possession. Tokarenko had reportedly taken advantage of a mining operation in China to launder the stolen funds. Everything seems to indicate that in the Pandora Papers there are traces of the activities of the Carbanak band.
Now, a criminal is a criminal. I think it's a mistake to divide fiat criminals and crypto criminals. Who has more? Who has less? We know there are criminals in all waters. In fact, most criminals move in many waters at the same time. An example is the so-called "Bitcoin czar". He stole in fiat, laundered the money with crypto to surely get fiat back. The Pandora Papers do not reveal the corruption of fiat money. They reveal corruption in general. Aren't there any crypto criminals?
Who has more criminals? Crypto or fiat? The approach itself is quite ridiculous. I mention this, because in the press I have read several references to it. It is suggested that the fiat world is a nest of corruption and the crypto world is practically a convent of nuns. The supposed proof of this reality is the Pandera Papers. Of course, the stark reality is that crime is everywhere.
Why does the IMF alert on cryptocurrencies?
People who say that Bitcoin is an asset primarily used for crime are just as irresponsible as people who say the same about tax havens. From the list published because of the Pandora Papers, there are many people who have not done anything illegal. They were involved in the scandal, but they are not necessarily guilty of anything. We must remember that these tax havens are recognised countries and territories.
Here's the big question: Are all financial crimes crimes? Suppose a country prohibits the purchase of foreign currency, but the local currency suffers from devaluation after devaluation. In this case, the law is driving the person into poverty. There is talk of”capital flight". Years of work can vanish in a matter of days due to the Government's monetary indiscipline. However, it is illegal to dispose of one's own money. The solution for many is to place money in a tax haven. Is this immoral? Here he left this for reflection.
Alejandro O. Asharabed Trucido
