Frenchman Herve Falciani, one of the most popular whistleblowers of the banking sector has set himself on a task to fight fraud and money-laundering issues in the cryptocurrency industry. According to the latest report from Reuters, Falciani is currently working with FinTech experts and Spanish academics to launch a new “ethical” crypto token dubbed ‘Tabu’ which can be used by the regulators.
The use of cryptocurrencies for illicit activities has proliferated in the last few years. Regulators have been having a hard time nabbing the criminals. Money-launders, hackers, tax evaders often leverage the use of cryptocurrencies to dodge regulators.
However, Falciani plans to use cryptocurrency’s underpinning blockchain technology itself to fight against fraud. He told Reuters that the major benefit of using blockchain is its ability to verify encrypted transaction records. Furthermore, it is completely tamper-proof and transparent.
Developing Tabu With Tactical Whistleblowers
A non-profit organization named Tactical Whistleblowers is behind the project and the development of Tabu cryptocurrency. Tactical Whistleblowers was found by a Monaco-based IT engineer from Spain and comprise a team of academicians and mathematicians.
Frenchmen Falciani is a former HSBC systems engineer, who served as a whistleblowers while releasing client information that triggered a slew of high-profile tax investigations. Last year, the Spanish court declined Switzerland’s second-time appeal for the extradition of Falciani. This again brought him into limelight thereby driving investor attention to his Tabu project.
So far Falciani has raised over 1.3 million Euros for this project and plans to raise 2 million more by selling his holdings. Falciani himself holds 5 million Tabu tokens worth 2 million Euros. However, he is currently waiting for a green light from Spanish regulators to sell his tokens to investors.
Blockchain Platform for Public Administration
In addition to the Tabu project, Falciani is reportedly working on developing a blockchain platform to cross-check electronic procurement contracts for public administrations. This project aims to eliminate issues relating to overfilling and other fraudulent activities.
The new blockchain system is called Aletheia, a Greek word for “disclosure” and is inspired by the SWIFT system for interbank money transfers. Falciani said:
“Technically and financially this opens the doors to improve the procurement systems. Because in public procurement we have a huge opportunity to spare money”.
Explaining how the cross-checks in blockchain system Aletheia are designed to remove fraud risks, he said: “Fake information is the basis of any kind of fraud ... The same way that we have to deal with fake news, the same technology can applied to fake invoices”.