The cryptocurrency boom is the modern era’s equivalent of the gold rush. For those that have followed my writings, that statement probably sounds like a contradiction. For the past six months I have been predicting a dire future for crypto, and have been even more harsh with my assessments of the NFT market and the concept of a decentralized finance (DeFi). However, you must understand that I view the decentralized world through a lens solely focused on financial fraud and money laundering.

That being said, I recognize that the human race is racing towards a highly digital and virtual world, one in which I either get on-board or get out of the way. Honestly though, I linger in the undecided camp and much of it has to do with the financial tomfoolery taking place in the NFT market. Each week a new piece of shocking news related to NFTs crosses our news feeds. Just this month we have been hit with news of racist NFTs, of how the very creation and existence of NFTs are destroying the environment, of NFT creators buying their own NFTs (insider trading?) and new wave financial crimes such as rug pulls, and now reverse rug pulls.

Perhaps though, the financial fraud and money laundering issues plaguing NFTs and cryptocurrency are just growing pains in the greater establishment of a fully decentralized financial system? The original gold rush (1848–1855) had its share of growing pains too, many of which were well documented and more tragic in human terms. That seven year span changed the course of history though, leading to the expansion of manufacturing, service industries, lumber, clothing, transportation, agriculture and retail businesses. Though the state of California had zero banks prior to the gold rush, it had become an economic powerhouse by the end of the century as a result of the gold rush.

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