Bitcoin money laundering reddit

This is possible if the user mixes the pre- and after-mixing coins. Assume you have before mixing funds on addresses 1a And now you put 1a Then the user might do some traceable transactions with 1c After a year the user lost the overview what belongs to the pre- and what to the after-mixing world and uses 1cc.. Then analytics can link 1a So it's not very easy to keep traces hidden. There is another risk if you use mixers for laundering. If the mixer has an operator non-decentral solution you cannot know if not your local police is or pays the mixers operator and can link directly your inputs and outputs in the mixer.

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How is it possible to launder bitcoins? Ask Question. Asked 9 years, 7 months ago. Active 3 months ago. Viewed 25k times.

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Active Oldest Votes. Improve this answer. Pacerier 2, 2 2 gold badges 18 18 silver badges 32 32 bronze badges. David Schwartz David Schwartz It is still possible to trace all those links, but more difficult, with multiple layers of plausible deniability. If you have a good mix of people, you can create a confusing mess.

The downside is that many "bad trails" will lead to you.

The upside is that hopefully it will be clear that they're trying to read through a mess and thus not seeing anything useful. Do you mean "find me"? DavidSchwartz, From your answer, doesn't that mean that all of the people involved with the launder service are now "blackmarked" and subject to legal action even though some of them are completely innocent?

Pacerier Precisely, which makes the black marks provably meaningless. If you can cast suspicion on lots and lots of people, most of whom are likely innocent, that suspicion becomes very, very weak. Show 1 more comment. Bitcoin anonymity is a fallacy. Alex Waters Alex Waters 3, 2 2 gold badges 19 19 silver badges 39 39 bronze badges.

That doesn't mean Bitcoin cannot be used to effectively launder money. It is probably more effective and efficient than traditional methods. Likely because either A The people investigating aren't using the latest methods to triangulate users or B the hacker used additional measures such as tor which are outside the scope of what comes in the bitcoin package. Carl Force and Shaun Bridges thought the same way you did… They are now in jail.

This website is for technical discussions generally of a scientific nature. Your reasoning would imply that I support some kind of ideology; when I am just describing my understanding of it.

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Show 2 more comments. Artem Kaznatcheev Artem Kaznatcheev 1, 1 1 gold badge 14 14 silver badges 23 23 bronze badges.

Cryptocurrency \u0026 Money Laundering

It's also possible to perform "offline" transactions such as exchanging BitBills or otherwise exchanging keypairs rather than coins. Since these transactions do not appear on the network until the BitBill or other device is "redeemed" by sending coins to a new address, they are no more traceable than cash transactions. Even purchasing a bitbill with one wallet and then redeeming it on another adds plausible deniability. David that is a good point, I was just trying to separate the technical part of tracing transactions from wallet to wallet, with the legal part of trace-ability.

Peter Mortensen 2 2 silver badges 9 9 bronze badges. Joshua Kolden Joshua Kolden 3, 21 21 silver badges 26 26 bronze badges. Interesting thought: money laundering laws apply to services that actually handle money, but Bitcoin is not legally considered "money" anywhere yet. Governments probably do not want to legitimise Bitcoin by calling it money but will still want to apply AML laws. Joshua, Citation needed for "If the service didn't retain your identity and a record of the transactions then they would be guilty of money laundering laws".

As it is, it is completely false. There's a lot of bitcoin washers out there and none of them asks for your identity, even those that don't run on. By whom is citation needed? It is well documented AML law. You might try googling first if you are in need of citations. You may also try here: en. It seems very much like normal money laundering services that banks offer. There's totally legit reasons for anonymity. Indeed, the world would be a better place when people can expect privacy with how they spend their money. Aside from the humorous example by bitlaundry , some legit reasons for anonymity: 1 a normal company who doesn't want people knowing how much salary they are paying their employees, or how much money they are paying their suppliers, and etc.

Say you purchase a shoe, or a house, and you don't want people to know how much you paid for those items. Some indeed may have real need to be anonymous. Sarah Sarah 31 1 1 bronze badge. Although the first paragraph of your answer is good, the latter section is irrelevant to the question itself. Unless they are able to get your account information for both sites. I think that this actually does work, however it'll require time washing for the anonymity to be strong.

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Bitcoin Reddit Roundup - August 2021

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