- Aurelius Capital Value called Silvergate`s partnership with Huobi into doubt.
- Huobi has been labeled a lax-KYC offshore exchange.
- Variations in the strictness with which KYC and AML requirements result to slack in controls.
The public company investigator Aurelius Capital Value has cast doubt on Silvergate’s association with Huobi Global. This results from the establishment that Huobi Global has poor KYC standards. It was also a result of an experiment conducted in 2020 by the forensics company Cipherblade.
The experiment demonstrated how simple it was to create false accounts by using photographs of celebrities that had been altered using photo editing software as the ID photo. It was also discovered that Huobi Global had not taken any action against the links that were made between Huobi and the darknet marketplace Hydra.
In addition, the company was unable to find a way to harmonize the formal due diligence procedure that Silvergate uses with Huobi’s onboarding process.
Subsequently, Huobi has been labeled by Aurelius Capital Value as a lax-KYC offshore exchange where criminals, such as North Korea’s Lazarus, have laundered billions of dollars.
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