When people get scammed and money is transferred out of their bank, why isn’t there a paper trail? If the money is transferred into some foreign country that won’t allow tracing, why not just exclude those countries from the banking system?
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It’s been a long time since I was in school but I reckon it’s got to do with the innocent parties who get involved, and also some archaic rules about tracing (which idk if are applicable everywhere but we’re applicable when I was in uni in the last decade). So the moment the money is transferred to an innocent third party in a bona fide transaction, the court – even if it’s a cooperating country – won’t damage the innocent third party to restitute you. It’s not their fault. And the bank won’t suffer loss to compensate you – it’s not their fault either. And thus you – the OG victim – are up shit creek. And the rules of tracing require that funds be identified. So I think the problem used to be that digital currency is interchangeable – ie $1 in a bank account doesn’t exist – there’s no specific ID number to correspond to a specific $1 bill (which is unique) and thus iirc banks rely on this loophole to say you can’t trace electronic currency because it can’t actually be distinguished from all the other currency in the bank. Pls correct me if I’m wrong tho this isn’t my area of practice but I remember it bugged the hell out of me when I was learning it.
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