Bitcoin Forum

Hello! Just a newbie and im really curious how the bitcoin in the black market cannot be traced. How are they hidden from the blockchain? From what i understand is they are using a mixer. They will trust their coin to a certain website so your bitcoin will  be mixed and when you withdraw then your bitcoin is different now. Please explain to me if im wrong and how they'd do that. And if the mixer is the only way, what are the trusted mixer sites? My curiousity is high now :)

Nothing is hidden in the blockchain. You right, you can use mixer services to make your transaction not traceable. When using mixer services, you don't need to deposit and withdraw manually, they'll mix the coin automatically.
One of the trusted mixer sites that I know is Bitmixer.io (https://bitmixer.io/)

I guess a project called Zerocoin is under developement to make Bitcoin transactions off chain which is a good thing .
for Mixers they will still show up on the Blockchain and will never be hidden there , all what mixer do is make it hard to trace the transaction

here is a trusted mixer that is known: https://bitmixer.io/ & here is how it works : https://bitmixer.io/how.html
It's not that hard to be honest even if I never used it ... it looks simple :)

So for a mixer to work person A will send bitcoin along with person B. Person a sends in for example 0.1 and so does person B. When person A goes to get his bitcoins out he gets person B's instead of his to the same value.
I believe it is similar to that but on a bigger scale with parts of people transactions etc.

Yup correct. They use a mixer to hide the source of Bitcoin transaction or increase the anonymity. The mixer has to be very trusted, you won't know if the mixer would delete the logs as promised or hand them over to the FBI, its pretty risky. They are never hidden from the blockchain, people just don't know what they are used for. I recommend bitmixer.io, they are rather stable and trusted.

check out my signature here. they are providing the service you require. and also here is the service announcement:
https://bitcointalk.org/index.php?topic=415396.0

Full anonymity is really hard to achieve but you can create stealth payments or you can use dark wallets the mixer service is inbuilt in it.
Although you have to do your own research on how to use them. Last time i checked dark wallet's mixer server was offline for some reason.

yeah, bitmixer is quite popular in this forum.
However you still can try to google it if you need to find other mixing service besides bitmixer.

I found this , https://bitlaunder.com/bitcoin-mixer
But I can't guarantee their legality.

I think bitmixer.io (https://bitmixer.io/index.html) is the most trustworthy at this moment.

Whilst bitmixer is the most popular it is often well worth using a few services to try to garuntee anonymity (If that is what you are after) A good idea to remain fully anonymous is to make a throwaway account on an altcoin exchange. Pick a stable ish altcoin put you btc into that and then transfer it to another exchange where you then recieve your BTC. If possible you just then delete your accounts there.

What if you got the bitcoin from the mixer which came from someone who got it  from an illegal transaction? What i've understand is that they will mix your coin to others.

Looks like bitmixer.io is popular here. I just hope that there's no conspiracy here lol.  I might try them. Can they use the blockchain as an evidence? Even you are from different county? Will the bank gonna cooperate with the government agency from other country if you sell your bitcoin to a buy and sell of bitcoin that's gonna be sent to your bank account?

bitmixer.io is the best mate i used it
just try it :)

Well that is kind of a problem see, what happens if someone is running a big illegal ring and comes into contact with hundreds of thousands of bitcoins?  All of those bitcoins can be traced back to criminal transactions and then be seized... This could be any fraction of a bitcoin that comes into your possesion, aside from newly minted blocks.

Bitcoins cannot be seized without the private key.

you can try bitmixer or dark wallets.

I think they are the only trusted options.

Dark wallets? what and how are they used? I use to think dark wallet is the wallet for darkcoin.

There is a Bitcoin Darkwallet. It's some kind of browser plugin that will give more privacy features to its user. I don't have a deep knowledge about it though. https://www.darkwallet.is/

What I meant by that is you can get money seized if it is suspected of being used in a criminal way and such I am sure the police would be more than willing to do the same with BTC. Such as what they did with the silk road bitcoins.

If the coins go through a well known mixer address, most people probably won't care. Having taint coins will not automatically mark you as a criminal. For the silk road case, DPR was arrested WHILE using silk road, they have enough reasons to sieze the BTC. If people actually get arrested for coming in contact with tainted coins, everyone using bitcoin would have been arrested.  There are mixer who charge a small fee to exchange your coins to newly mined bitcoin, erasing all the traces.

Ive never had problems with not mixing my coins but if it helps you sleep at night go for it.

Regardless, they cannot seize any bitcoins without the private key. They were somehow able to obtain the SR private keys, most likely because the wallet was unencrypted or they had its encryption key.

Other than using a mixer, people can use an exchange or a casino to mix their bitcoin.
Looking at it at another perspective, if your bitcoin has gone through a casino or an exchange in the past, there could already be some taints.

Bitmixer.io is a popular mixer here.
What you have to consider is the fees involved in mixing. Is it worth it?

On Bitmixer, you can set the transaction fee to as low as 0.5% (+ 0.0005BTC). Which means if you mix 0.01BTC, the fee would be just 0.00055BTC

You also can sell you bitcoin to other altcoins and then buy back with the altcoins. It another way to mix your coin.

But if you have personal info that could lead to you, listed on those exchanges then it may uncover your identity.

Most altcoin exchange do not require verification. If you are paranoid, just withdraw the altcoin and mix it then use a proxy to create new account then exchange it there. Using various exchanges is also a good idea, together with proxy of course.

But mixer is easier way as it completely changes your coin for clean ones from their wallet.

Is that safe to do sir? thanks

that seems a bit overly complicated IMO

cant you just send them to a high volume  exchange where they will land in the deposit or "hot wallet " and sold on  to customers or  possibly be moved to the cold storage where they could be mixed with 200,000 other btc

when you withdraw them after a day or two  its unlikely you will get any of your same coins back

You can, but the exchange will keep all transaction records.
For normal bitcoin users, it is not a problem, but it may not be the case for "black market users".

many are reliable, depending on their own provide an escrow fund to be safe :)