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I am wrong, or the dollars should be already laundered before they reach MtGox?

You have to transfer them from a bank account, right?

You are not wrong, unless there's some way to buy bitcoin by cash or some other untraceable means (Western Union?). I think many people are confusing laundering with other things like tax evasion. They're distinctly different.

No, you could buy bitcoins with unlaundered dollars, even with a credit card, and then launder the bitcoins themselves so that when you spend them they can't be traced back to the account you bought them with.

You can do that but it would serve no purpose. If you bought $100k bitcoins on a credit card, now the IRS has a paper trail. They'll want to know where that $100k you paid the credit card bill came from.

Even if you got the money in without being traced and spent them that's not laundering, it's tax evasion.

Ah, I misunderstood what was being proposed.

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