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'Dark Wallet' Is About to Make Bitcoin Money Laundering Easier Than Ever

by: Andy Greenberg|April 30th, 2014

Entertainment

Government regulators around the world have spent the last year scrambling to prevent bitcoin from becoming the currency of choice for money launderers and black marketeers. Now their worst fears may be about to materialize in a single piece of software.

On Thursday, a collective of politically radical coders that calls itself unSystem plans to release the first version of Dark Wallet: a bitcoin application designed to protect its users identities far more strongly than the partial privacy protections bitcoin offers in its current form. If the program works as promised, it could neuter impending bitcoin regulations that seek to tie individuals identities to bitcoin ownership. By encrypting and mixing together its users payments, Dark Wallet seeks to enable practically untraceable flows of money online that add new fuel to the Web's burgeoning black markets.

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