Mixing service: Difference between revisions
→See Also: Remove entry for a specific mixing service. That's what the Mixing Services category is for. |
Add caution relating to operators that are anonymous. |
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There has been at least one incident where a Bitcoin exchange has blacklisted "tainted" deposits descending from stolen bitcoins<ref>[http://bitcointalk.org/index.php?topic=73385.0 Mt Gox thinks it's the Fed. Freezes acc based on "tainted" coins.]</ref>. Manual or lightly automated mixing methods can make detection of taint more difficult unless the exchange follows the trail<ref>[http://bitcointalk.org/index.php?topic=79079.0 Blockchain-based betting services function as mixing services?]</ref>, but this approach does protect privacy like a true mixing service would. | There has been at least one incident where a Bitcoin exchange has blacklisted "tainted" deposits descending from stolen bitcoins<ref>[http://bitcointalk.org/index.php?topic=73385.0 Mt Gox thinks it's the Fed. Freezes acc based on "tainted" coins.]</ref>. Manual or lightly automated mixing methods can make detection of taint more difficult unless the exchange follows the trail<ref>[http://bitcointalk.org/index.php?topic=79079.0 Blockchain-based betting services function as mixing services?]</ref>, but this approach does protect privacy like a true mixing service would. | ||
<span style="color:red">Caution: Mixing services may themselves be operating with anonymity. As such, if the mixing output fails to be delivered or access to funds is denied there is no recourse. Use at your own discretion.</span> | |||
==See Also== | ==See Also== | ||
Revision as of 08:03, 1 January 2013
A mixing service can be used to mix one's funds with others', with the intention of confusing the trail back to the funds' original source. In traditional financial systems, the equivalent would be moving funds through banks located in countries with strict bank-secrecy laws, such as the Cayman Islands, the Bahamas and Panama[1].
Mixing helps protect privacy, but can also be used for money laundering - mixing illegally obtained funds. After laundering, the funds appear legitimate[2]. Mixing large amounts of money may be illegal, being in violation of anti-structuring laws.
There has been at least one incident where a Bitcoin exchange has blacklisted "tainted" deposits descending from stolen bitcoins[3]. Manual or lightly automated mixing methods can make detection of taint more difficult unless the exchange follows the trail[4], but this approach does protect privacy like a true mixing service would.
Caution: Mixing services may themselves be operating with anonymity. As such, if the mixing output fails to be delivered or access to funds is denied there is no recourse. Use at your own discretion.