[jbri]

Real money. Sell bitcoins to people who are buying them in order to purchase drugs.

There's nothing inherently linking the two transactions of "X bitcoins transferred from wallet #1 to wallet #2" and "Y USD transferred from Bob to Joe" - with sufficient care and redirection, you can make it very difficult to track down exactly where the bitcoins are being traded for real money.

[mehwoot]

Well yes but you are assuming you can find a buyer who is willing to do a straight bank transfer rather than using an exchange. And most people much prefer to use the exchanges. Especially if they are buying drugs with the bitcoins; if they did a bank transfer to a person selling drugs, they could have just used that payment method in the first place.

[icebraining]

But now you have to trust "Joe" to make sure his real identity can't be easily linked from his bitcoin addresses, or else they'll find out about the USD transfer.