Goldman Sachs is embroiled in the worst scandal in its history - a multibillion-dollar international fraud. Investigators link him to Malaysian Prime Minister Najib Razak, who spent the proceeds of the scam on luxury goods and an extravagant lifestyle.
Razaq created and controlled the “sovereign wealth fund,” and with the help of Goldman Sachs bankers, transferred most of the funds coming into the fund’s account into his personal bank accounts. He used this money to buy a Picasso painting, Birkin bags, and also to pay for the Hollywood blockbuster “The Wolf of Wall Street.” About $731 million was transferred into Razak's own bank accounts, according to U.S. prosecutors. This is not the first time Goldman Sachs has been hit with allegations of misconduct. Bank officials have spent years trying to repair a reputation that was badly damaged during the financial crisis, when the bank was accused of abuses and putting its own profit before the interests of customers.
The New York Times writes about the scandal:
At least one senior executive in the bank's Asia department knew about the criminal scheme, regulatory officials said. He has not been identified and no charges have been brought against any of the leaders. Andrea Vella, co-head of Goldman's Asia investment banking business, was in charge, according to three people with knowledge.
This quote is important because it illustrates the lack of transparency that plagues traditional banking system.
Blockchain systems, on the other hand, have built-in methods to prevent fraud and misuse of funds. And although criminals will always look for ways to make easy profits, stealing more than three-quarters of a billion dollars in a system managed using blockchain is unlikely to ever be possible. In fact, this scheme would be impossible in a distributed ledger ecosystem, where every transaction is transparent and controllable by any of the system participants.
According to cryptoticker.io
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