Yes, Bitcoin can be used for money laundering. There are a few ways that this can happen:
1) Bitcoin can be used to buy goods or services that are then sold for cash. This is how most traditional money laundering works – the proceeds of crime are used to buy something, which is then sold for cash.
2) Bitcoin can be used to send money to another person or organisation anonymously. This makes it difficult to trace the origins of the funds, making it a popular choice for criminals.
3) Bitcoin can be used to launder money by gambling. This is because winnings can be cashed out without any trace of where the money came from.
4) Bitcoin can be used to purchase prepaid debit cards. These can then be used to withdraw cash anonymously from ATMs.
5) Bitcoin can be traded on online exchanges for other currencies. This makes it difficult to track the origins of the funds, as they can be quickly converted into another currency.
All of these methods make it hard for authorities to trace the origins of the funds and so make it easier for criminals to launder money using Bitcoin.