How Not to Become a Money Mule in the Crypto World

A Fictional Story Based on Real Life

Anna was a young student who needed to earn some extra money while studying. One day, a stranger reached out to her and introduced her to a seemingly interesting “business model.” He told her that he would send large sums of money to her bank account, and all she needed to do was forward those funds to a cryptocurrency exchange or trading platform. The account on the crypto platform would be registered in Anna’s name, but the stranger would also have access to it.

In return for creating the account and forwarding the money he sent her, Anna could keep a small percentage of the funds as a “commission.” While this might sound like a quick and easy way to earn money, if Anna decided to participate, she would in fact be committing a criminal offense.

Money Laundering in 5 Steps

1. Criminals who intend to launder money often target students or seniors, whom they carefully select in advance.
2. Once an agreement is made, the criminals send large sums of money to the bank account of the student or senior.
3. The student or senior then opens and verifies an account on a crypto platform in their own name and transfers the received funds to it, keeping a small portion as a “commission.”
4. The criminal gains access to the crypto platform account based on their mutual agreement.
5. The criminal can then exchange the funds for crypto-assets, send them to their own wallet, or trade them on the exchange.

Explanation of Money Laundering

While most of our previous examples have focused on scams, this case involves a much more serious criminal activity—money laundering—using an unaware victim. Criminals carefully choose their victims, often targeting students or retirees, and approach them with offers that seem simple and harmless.

The criminal sends money to the victim’s bank account. The victim then forwards those funds to a crypto exchange using a verified account registered in their name. This account can buy, sell, or send crypto-assets—and often, the criminal has full access to it.

From the outside, it appears that the victim is the one conducting the crypto transactions, such as deposits, withdrawals, purchases, or transfers. This makes it possible for the criminal to “clean” money that was obtained through illegal activities, turning it into crypto-assets and transferring it to their own wallets—or even to other bank accounts.

So, what does the victim—typically a student or retiree—gain? Usually, it’s a small percentage of the laundered amount. The promise of fast and easy income is a powerful motivator. However, what they often don’t realize is that they are committing a criminal offense.

NBS Advice

Ignorance of the law is no excuse, so everyone should seriously consider whether it’s worth accepting such seemingly simple money-making offers. Some of the warning signs to watch out for include:

• Being approached by a stranger offering quick and easy money.
• Being asked to forward large sums of money through your personal bank account.
• Being asked to share your banking details or login credentials for crypto platforms.

If you suspect money laundering, contact the Slovak Police (Polícia SR).

Last updated on 25 Mar 2025