Cardano (ADA) CEO Says Using NFTs to Launder Money is Possible

As many rumors are circulating that people use non-fungible tokens (NFTs) to launder money, Charles Hoskinson says that this isn't a problem exclusive to crypto.

Cardano (ADA) CEO Charles Hoskinson said that using NFTs to launder money is possible and it isn't exclusive to crypto.
Cardano (ADA) CEO Charles Hoskinson | Image: Decrypt

Recent weeks have seen a renaissance in NFTs as trade volumes surge, and high-profile sales continue with no sign of letting up.

While NFTs see a surge in volumes and high-profile sales continue with no sign of giving up, others think there’s more to this than just paying millions for digital arts.


In regard to this, Cardano CEO Charles Hoskinson thinks that there is an element of this happening, saying that this situation isn’t unique to crypto.


Recently, many celebrities and money men jumped into the NFT space, spending millions on collectible assets. Last month, CryptoPunk #7252 was sold for 1,600 ETH ($5.33 million), and Fidenza #313 sold for 1,000 ETH ($3.335 million).


With reference to these insane prices for just digital arts, some people don't believe that it is only about digital art. Looking at this situation, Cardano founder Charles Hoskinson said that the current it is either “irrational exuberance,” or a vehicle for money laundering.


Hoskinson continued that using NFTs to launder money is possible because many of these platforms are non-custodial and don't need registration.


He added,


“Then what you do, you have this rock picture, you sell it to yourself through your other account, which is “some other person.” That other person buys that rock NFT, and you’ve effectively just transferred money from an illegitimate source to a legitimate source.”

Additionally, he stressed that this is common for real-world art to be used in money laundering under related facts.

"And there’s also a “soft corruption” when it comes to paying speaking fees as well," he says, adding that “we’ll pay you $100,000 to do a 30-minute speech, or something like that. I don’t care what you talk about, you can talk about the weather.”