"Each intermediary represents a point where transactions become opaque to the ultimate parties and vulnerable to manipulation."— From the analysis of 1MDB's fraudulent bond sales through Goldman Sachs
Simulate an International Settlement
🇲🇾
Malaysia SWF
Sovereign Wealth Fund
$100,000,000
🇸🇬
Singapore Investment
Investment Partner
Traditional Banking
Originating Bank (Malaysia)
-$15,000
Wire transfer initiation, compliance review
4-8 hours
Correspondent Bank #1
-$25,000
USD clearing, SWIFT messaging
12-24 hours
Opacity point — transaction details internal
Clearing House
-$8,000
Settlement processing, netting
24 hours
Correspondent Bank #2
-$20,000
Cross-border routing
12-24 hours
Opacity point — manipulation possible
Receiving Bank (Singapore)
-$12,000
Final credit, compliance check
4-8 hours
Intermediaries
5 entities
Total Fees
-$80,000
Settlement Time
3-5 business days
Opacity Points
2 (manipulation risk)
Amount Received
$99,920,000
Bitcoin Settlement
🇲🇾
Malaysia SWF
bc1q-mys-8f4k2m9x...
Direct peer-to-peer
No intermediaries
Visible end-to-end
No intermediaries
Visible end-to-end
🇸🇬
Singapore Investment
bc1q-sgp-3n7m4k9x...
Intermediaries
0 entities
Network Fee
~$2.50
Settlement Time
~60 minutes
Opacity Points
0 (fully transparent)
Amount Received
$99,999,997.50
How Intermediaries Enabled 1MDB Fraud
When Malaysia's 1MDB conducted its fraudulent bond sales through Goldman Sachs, the complex intermediary structure helped obscure the fraud. Proceeds flowed through multiple banks and jurisdictions before reaching their illicit destinations—each handoff creating opacity that defeated investigators for years.
1MDB
Malaysia
→
Goldman Sachs
New York
Good Star Ltd
Seychelles
Aabar BVI
British Virgin Islands
Shell Co.
Luxembourg
Personal Accounts
$700M to PM Najib
"The complex chain of ostensibly independent counterparties defeated investigators for years."
— Wright & Hope, Billion Dollar Whale (2018)With Bitcoin settlement: Every transfer would be visible end-to-end. The $700 million flowing to personal accounts would have been publicly traceable from the moment it left the fund. There would be no opacity points where transactions "become opaque to the ultimate parties and vulnerable to manipulation."
| Metric | Traditional Settlement | Bitcoin Settlement |
|---|---|---|
| Settlement Time | 3-5 business days | ~60 minutes (cryptographic finality) |
| Intermediaries | 4-6 entities (banks, clearing houses) | 0 (peer-to-peer) |
| Fee Structure | 0.05-0.1% + fixed fees per intermediary | ~$1-5 flat (regardless of amount) |
| Visibility | Opaque at each intermediary | Visible end-to-end, permanently recorded |
| Manipulation Risk | Each intermediary is a vulnerability point | No intermediaries to manipulate |
| Track Record | Centuries (with periodic failures) | 15+ years, trillions in cumulative value, 100% uptime |