Thread

1. davidmurdoch · 1789565368 · focus · HN ↗

   I'm partly to blame. I accidentally ran an illegal unregulated money transference service over Google Play.

   It let users cash out their Google Play Credits for real cash, which I automatically wired them.

   Someone then hacked in to a major bookstore chain, stole piles of Google Play Gift cards, activated them using their access, and used my app to get cash for them.

   Luckily, the whole thing blew up on me before I got in serious trouble, rightfully so, and the app was removed by Google, then an investigation followed. A ton of copycat apps popped up immediately after, then a few months months later Google announced their app review process.

   1. WA · 1789567990 · focus · HN ↗

      What did you do with all the Google Play Credits?

      1. davidmurdoch · 1789568612 · focus · HN ↗

         When you "spend" Google Play Credits in an app, Google Play treats those credits the same as if you paid with real money: they took 30% (their take isn't so steep today), I took 10%, and then I sent the user/buyer the remaining 60% directly from my bank account (I used Dwolla back then).

         It was risky because I didn't actually receive any money from Google until about a month later.

         1. skeptic_ai · 1789580745 · focus · HN ↗

            What you did was money laundering. And big chance for getting in trouble if let’s say ton of credits come from fraud/stolen and then google pays out to you and then crawl back once they realize is fraud.

            I’m curious how you didn’t get into money laundering problems.

            1. davidmurdoch · 1789582739 · focus · HN ↗

               Technically it was an unregulated money transference service without KYC. The user that stole the cards from the bookstore was the one doing the money laundering part. I just enabled it (which is probably worse, legally).

               I was investigated and cooperated fully.

               Edit: I just remembered, the bank I used for the transference did do KYC for all users who were sent funds. This makes it more like "money dirtying", since the account is tied directly to a real identity.

               1. skeptic_ai · 1789651077 · focus · HN ↗

                  Thanks for your detailed answer. Could you tell me what other things you had to deal with? Any prison, bad credit, fees, lawyer fees ?

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