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By Phillip Yu

Bitcoin is a peer-to-peer network-based electronic currency created in 2009 by an unknown individual under the alias Satoshi Nakamoto. Bitcoin owners store bitcoins on “digital wallets” and can transfer funds to others without the assistance of a central governing agency or a bank. The processes of acquiring, managing and trading bitcoins are largely anonymous. Some people use bitcoins as an alternative currency while others acquire bitcoins as an investment much like stock, hoping for value appreciation in the future. Currently, there are several marketplaces that allow people to buy and sell bitcoins, with Japan’s Mt. Gox being the largest.

Theoretically, bitcoins have tremendous potential positive impacts on international trade. First, international transactions can become cheaper since bitcoins are currently unregulated, thus avoiding many transaction costs. In addition, since bitcoins are not officially tied to any particular state, political risk is relatively low. Further, bitcoins are less susceptible to inflation, since bitcoin protocol demands a finite number of outstanding coins. Lastly, the fact that the bitcoin is a single, consistent currency eliminates the hassle and expense of exchanging currencies.

Despite accounting for a range of positive theoretical benefits, the mysterious anonymity surrounding Bitcoin and its connections to illegal dealings have garnered a great deal of controversy and concern. 

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March 01, 2014

By Abraham Shanedling

The U.S. Department of Treasury announced Tuesday the designation of six companies and five individuals linked to Los Gueros, a Mexican drug-trafficking organization.

The individuals designated included family members and associates of Los Gueros’ leaders. The designated businesses are owned or controlled by the organization and are suspected of being used by the group to launder their illicit proceeds. These companies include a tequila maker and its two parent companies, according to the Treasury Department.

Los Gueros, based in Guadelajara, Mexico, is responsible for transporting multi-ton quantities of narcotics into the United States, and hid its ownership interest in companies and properties for years by using aliases, the Treasury Department said in its statement.

The Treasury Department had previously placed Los Gueros and its four leaders under Kingpin Act sanctions in February 2011.

Read more about this at the Wall Street Journal.

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September 25, 2013