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Re:Key Change by huac on Tuesday October 29, 2019 @05:55PM (#21392513)
this has been the case since at least 2012 (russian mob, i think), it was a very efficient payout mechanism because you can buy keys for $2.50 and resell for $2 ish, for around a 80% recovery rate. in tf2 we had other mechanisms, e.g. bills hat = $10, earbuds = $20-25, max head = $150 for storing value, not sure if CSGO has similar things. maybe now people will just use the keys and gamble on boxes and resell the skinned guns.

all of that is to say that you aren't going to stop money launderers by cutting liquidity, you do it by identifying their behaviors and blocking them based on that.

Re:Key Change by rococode on Tuesday October 29, 2019 @07:26PM (#21393179)
I think CSGO doesn't have as many stable "currency items" like buds or refs in TF2; keys are pretty much the only currency item. But it still has plenty of high-price items that can be sold reliably for prices upwards of $1000, just like some unusuals and things in TF2. (Disclaimer: haven't done any trading in CSGO for a couple years, TF2 for many years)

I agree that this change only complicates the process and probably doesn't stop them. Launderers are just going run the numbers (since drop rates are public), and at the scale they're operating at they can probably rely on expected values. If the new margins still work for them they'll just unlock boxes and sell the skins directly. And I'm inclined to think the margins will still work, since the market kind of naturally prices items around key costs.

Re:Key Change by pingyong on Wednesday October 30, 2019 @06:03AM (#21396031)
Margins are really, really bad though. You get like $1 for $10 of keys. Plus it takes a huge amount of time to open all those chests. Plus if you need that many chests you need to buy those from the market. I think it's not going to be worth it for a lot of people.
Re:Key Change by eru on Wednesday October 30, 2019 @04:42AM (#21395645)
> all of that is to say that you aren't going to stop money launderers by cutting liquidity, you do it by identifying their behaviors and blocking them based on that.

Valve doesn't need to stop money laundering. They just need the money launderers to go elsewhere. (And they need the regulators to leave Valve alone.)

Re:Key Change by ben174 on Tuesday October 29, 2019 @07:15PM (#21393097)
Why is this necessary? With crypto it's super easy to use a tumbler or simply convert to an unregulated exchange and back again.
Re:Key Change by rtpg on Wednesday October 30, 2019 @06:20AM (#21396115)
Because in practice the places where it’s easy to go from BTC to fiat, and the places where you can easily money launderers, are distinct.

Financial regulation has caught up to most of the exchanges and it’s not always easy to get cash out of a system (and that’s not even mentioning loads of shadier exchanges near-guaranteed insolvency)

Re:Key Change by rebuilder on Wednesday October 30, 2019 @03:45AM (#21395392)
Speed, cost come to mind.
Re:Key Change by eru on Wednesday October 30, 2019 @04:44AM (#21395657)
Also eg bitcoin leaves a globally readable audit trail.
Re:Key Change by ddtaylor on Wednesday October 30, 2019 @05:17AM (#21395801)
Monero doesn't.
Re:Key Change by eru on Wednesday October 30, 2019 @10:48PM (#21405277)
At the risk of splitting hairs: even Monero leaves a globally readable audit trail. It's just designed to be much harder / impossible to track. But no one needs even a warrant to start analyzing.

Random criminals are well advised not to trust their own judgement about crypto claims, nor their own prowess in operations security.

Keep in mind that eg lots of bitcoin exchanges have been hacked without any flaw in bitcoin itself. It's probably even easier to accidentally leak information, even if the underlying coin you are using doesn't.

Re:Key Change by antihero on Wednesday October 30, 2019 @09:32AM (#21397477)
Exchanges are subject to AML
Re:Key Change by viraptor on Tuesday October 29, 2019 @07:19PM (#21393121)
On Steam market you can do better. I keep buying cases and selling them at minimal profit (but tens of cents a day do add up over time). The price swing is just slightly larger than steam's share on the trade.

(Of course if you want to liquidate to non-trivial amount of money, you're probably not interested in speculation)

Re:Key Change by CydeWeys on Tuesday October 29, 2019 @07:21PM (#21393144)
What does your hourly wage from doing this look like? Just curious.
Re:Key Change by viraptor on Tuesday October 29, 2019 @07:28PM (#21393195)
Heh, it's not a wage. It's "mindlessly click buy/sell after getting market notification and get a free game a year".
Re:Key Change by animal531 on Wednesday October 30, 2019 @04:28AM (#21395577)
It is actually a wage, that time isn't free. You could get a job at McDonalds for 1-2 weeks of the year and make the same amount of money in probably a lot less time.
Re:Key Change by viraptor on Wednesday October 30, 2019 @07:43AM (#21396572)
I would not enjoy that work at all. On the other hand finding items with good spread and daily swing is a fun meta game on its own. So no, that's not even close to a wage. More of small time gambling.
Re:Key Change by animal531 on Wednesday October 30, 2019 @08:56AM (#21397157)
I hear you, us humans can turn anything into a fun little game.
Re:Key Change by Cthulhu_ on Wednesday October 30, 2019 @07:31AM (#21396500)
Yes but is that fun? Not everything is about making money.
Re:Key Change by pluma on Wednesday October 30, 2019 @08:30AM (#21396931)
Alternative take: it is about making money but paid labor is an exchange in return for money and what you put in is more than just time and effort.

If you like your job, your cost looks very different from doing an equally demanding job you hate. The emotional cost is real and can have long-term effects on your health.

Plus of course clicking stuff on your computer is something you can do in your time wherever you are as long as you have an Internet connection. Working for 1-2 hours at a gas station (or McDonald's or whatever) requires a fixed schedule and commuting, not to mention that you'd likely need to agree to a minimum number of working hours and are unable to just skip it whenever you want.

"Why don't you do this other form of unskilled labor for minimum wage instead" is a legitimate question when the current alternative is time consuming and they're struggling to make ends meet. Not so much when it's something they do for fun every now and then while already holding a job that pays above minimum wage.

Re:Key Change by huac on Tuesday October 29, 2019 @07:27PM (#21393183)
steam market didn't exist then. the other comment links to a steamrep thread - steamrep was a reputation tracker for traders doing real world transactions, which was crucial to mitigate counterparty risk without steam market.

the thing to remember here is that money launderers are looking to push a lot of volume. they care about the volume of clean money they can get, even if that means negative margins (you are "paying" for the service). i'm guessing market making in crates is not a very high volume kind of service but I might be wrong!

Re:Key Change by leoc on Tuesday October 29, 2019 @06:58PM (#21393003)
It's certainly been speculated about since 2012, at the very least: https://www.reddit.com/r/tf2/comments/134u4d/1111_key_inject... However it seems to have attracted almost no interest from journalists, for whatever reason.

OTOH, since "worldwide fraud networks have recently shifted to using CS:GO keys to liquidate their gains" probably has at least some basis in reality, what's the story there? What other methods are criminals (presumably) shying away from now?