Crypto-Asset Laundering is a Fraud Crime

Abstract

The proliferation of crypto-assets has generated both innovation in digital finance and new avenues for criminal exploitation. Among these, crypto-asset laundering has emerged as a critical threat to financial integrity, involving the deliberate concealment of illicitly obtained digital assets through technologically sophisticated means. This article critically examines the proposition that crypto-asset laundering is not merely a regulatory infraction or ancillary offense but constitutes a distinct form of fraud. Employing an interdisciplinary methodology that integrates doctrinal legal analysis, criminological theory, and comparative regulatory review, the study reveals that laundering via crypto-assets mirrors traditional fraud in both structure and intent. Techniques such as mixing, chain-hopping, and the use of privacy-enhancing technologies are deployed to deceive regulators, obfuscate transaction origins, and reintegrate illicit assets into the legitimate economy. Case law and enforcement actions further support the view that laundering is frequently prosecuted under fraud statutes, though legal doctrine remains fragmented. The article argues for a doctrinal realignment and calls for international legal instruments and national criminal codes to explicitly recognize crypto-laundering as a fraud offense. In doing so, the study contributes to the evolving discourse on digital financial crime and proposes a harmonized framework for addressing the fraudulent use of crypto-assets.