Bitcoin Forum

https://i.imgur.com/OfPkgrN.jpg

I used the bitcoin mixer Wassabi and another mixer and then I deposited the funds to bitmex to trade since the bitcoin price was moving fast. Source of money is indeed legit, reason I used the mixer is to avoid a exchange to track where I spend my damn money at because that's a privacy fuckery.
my thoughts is the mixed outcome is source from darknet? are these funds illegally obtained and just got assaigned to me? I am in trouble?

https://www.coindesk.com/bitmex-to-mandate-identity-verification-for-all-traders-amid-evolving-industry-regulations

Bitmex is bringing it in for everyone at the end of the month anyway so even if this hadn't popped up you would've been hit with it.

I don't know about Bitmex's feelings, but other exchanges have been rejecting coins mixed through Wasabi. Unlike other mixers they are completely identifiable as mixed. It won't necessarily be that you got 'hot' coins, it may well be that they know they're mixed and they want you to demonstrate they're not 'hot'. They have no way of knowing.

Now you can't anymore keep your privacy as they demand you to comply the KYC requirement,

Looks like it has come early to you, Bitcoin exchange BitMEX adds KYC for all its users (https://decrypt.co/38626/bitcoin-exchange-bitmex-is-adding-kyc-for-all-its-users)

Thought it will start in 2021.


By requesting a KYC to you it doesn't mean you are doing illegal activities, it's just part of the protocols they have, you are not in trouble as long as you are not doing something illegal.

I heard that the Wasabi wallet was monitored by Binance exchange, so there's a big chance that Bitmex might also watch wasabi?

Check this source: https://decrypt.co/15435/is-binance-monitoring-withdrawals-to-wasabis-bitcoin-wallet?utm_source=reddit&utm_medium=social&utm_campaign=sm

So I think your transactions were tracked, and it can lead to account suspended/freeze.

Look at this "Binance freezes BTC linked to Wasabi CoinJoin and asks invasive questions (https://www.reddit.com/r/CryptoCurrency/comments/ecud4w/binance_freezes_btc_linked_to_wasabi_coinjoin_and/)"

So you might be at risk because Bitmex might be also know that you use coinjoint from Wasabi wallet.

https://www.crowdfundinsider.com/2019/09/151096-wasabi-wallet-user-arrested-for-handling-bitcoins-from-serious-crime/

There are lots of reasons why Wasabi's wallet and all transactions coming from it will be in question and asking for some information about the transfer. May the KYC demand imposed by Bitmex is also a way to track you and might hold your account.

Of course, nobody would say that it is coming from any form of illegalities but having used this wallet, it gives them a reason to think about it. Even though you are telling the truth, KYC has been one of their request in order to accomplish your transaction.
Well, giving you have no option to take it either to continue moving it and submit your KYC or just leave it there.

KYC on BitMEX and centralized exchanges in general are pretty much inevitable. Heck, even the so called "DEXs" like IDEX(even if they're really not decentralized) aren't safe from government intervention. It's just a matter of when they're going to be implemented and enforced. Imagine the outrage when Binance finally enforces AML/KYC.

https://decrypt.co/38626/bitcoin-exchange-bitmex-is-adding-kyc-for-all-its-users

I suppose they consider mixers as the darknet now? Or just simply an excuse to slowly integrate its users with KYC. Still, it was already inevitable anyway, since starting August 28, you'd have needed to comply with their KYC procedures, which hell, as they said:


Since you used mixers, I doubt you'd be in trouble and since you yourself said that it came from a reputable source, then that's that. I suppose you might want to just comply with them since you're gonna have to later on so that you don't lose your funds stored in there, as well as saving you the hassle of doing more KYC later.

As far as centralized exchanges go, anything that prevents them from sticking their noses where they don't belong (such as CoinJoins) automatically triggers their "suspicious activity" algorithms and demands KYC.

You won't be in trouble legally, since there will be no way to prove if the funds you deposited were linked to darknet markets, and even if they were, if it was you that was using them on the darknet. What will happen is that your BitMex account will be locked and your coins will essentially be confiscated. If they like your KYC, they might unlock your account. If they don't like it, they will keep your coins and there will be next to nothing you can do about it.

Better that they start being honest and saying that they will demand KYC from everyone, rather than falsely advertising their "2 BTC a day unverified accounts", and still slapping KYC on anyone who dares to do something shady such as log in from two different IP addresses. ::)

i dont think logging in from 2 different IP addys should be considered shady by the exchange. because most of us are in dynamic mode of IP, every once in a while, our IP changes. unless you have your static IP at home, which is not common to all of us. binance should stick to their no kyc reqmt if you are dealing with 2btc and below daily.  and its not fair if they will require you KYC just because of the IP change. usually email verification should do the work on that case.

Just like what others said, it’s probably going to happen soon enough to be at nicks knowing that they want to be recognized as one of the best exchanges to trade on. If you're going to trade and know that you are on the right side of the coin, you should just follow the protocols needed, in my opinion, unless you are willing to give away in the coins that you deposited. They have complete control now.

BitMex is a big exchange and we can believe in the security method but there are risks with KYC as always.

Why KYC is extremely dangerous – and useless (https://bitcointalk.org/index.php?topic=5221497.0)

BitMex do their works honestly and straightfully by require mandatory KYC for all users, globally no exception without KYC for life-time volume, etc. I recalled the scam KYC of Crypto Bridge: they first required KYC on US. citizens, then about 1 to 3 months later they requried KYC on global users, and what was next, scam exit.

See Crypto Bridge scam story (https://bitcointalk.org/index.php?topic=5178747.msg53254237#msg53254237)

Although most of the large exchanges are rejecting the incoming bitcoin through the mixer, I think that the problem here is not because of the mixer, but because the central platform suddenly changed its policy and became KYC.
These are the unpleasant things that central platforms do in the open and decentralized world of Crypto that they want to control and centralize. It seems you have no choice now but to activate verification via KYC or you will lose your money.

Sorry to hear this but in the near future most exchanges will surely be going with this new way of requesting all users to undergo Know Your Customer process. Maybe you should try other mixers as well if they have flagged Wassabi. There are the likes of Samourai wallet and Bitcoin mixers, these are equally good and I know folks that have used them before and had no problem.

If they did, they would probably slowly but surely lose their market dominance. :D I'm betting that they'd more likely go with the sudden mandatory KYC route so their users with good amounts of money on their platform would have no choice but to comply.

The language in the email was pretty specific. Your coins must have been joined with coins that came explicitly from a known dark market hot wallet. Not to say you can't either

a) complete their requirements and provide a reasonable explanation, or
b) simply ask for a withdrawal and use someone else (I recommend FTX.com, they are a better version of BitMEX).

The interesting thing about BitMEX is they're not really an exchange -- they're more like an arcade or casino. You can only deposit and withdrawal BTC and nothing else. You send them your BTC, use it to buy some Fun Tokens to play with, and if you win the prize, you can cash it out for some BTC.

Either way, sounds like they didn't want your money at their casino.

Exchanges hate mixers so much. There are less and less space there you could use them

We see that all users on exchanges such as Bitmex or other CEX will of course also be asked to complete KYC, but sometimes not all of them have to, depending on the withdrawal limit, if your withdrawal is high you might have to pass KYC or it has new regulations where all users required to complete KYC at bitmex, I am not a trader at bitmex

It's mostly just some exchanges that doesn't want them for whatever reason. You can still freely transact with mixed coins anywhere else, especially peer-to-peer as most people don't even care about mixed/tainted/dirty/etc coins.

After some time almost all circulating coins will be mixed/tainted/dirty/etc though, so this is just a short-term "issue".

This is the disadvantage of a centralized exchange. Today or tomorrow they would ask about your KYC if it belongs to their terms and conditions. A mixed coin shouldn't trackable from where it came. I hadn't used Wassabi but seems according to other users, it's traceable if you use Wassabi mixer. If the transaction is that it has come from Wassabi then what are the benefits of using a mixer?

Anyway, there is no way except complying with their requirements. Try to explain after complete verification and come out from there. I will suggest such as mixer where the transaction is traceable from which mixer funds came from.

I think Bitmex is centralized so why are you surprised that they are asking for KYC. I do not think it is because you mixed your coin using a specific mixer which as becomes a subject of discussion on some exchange. You should have used DEX since you want to reveal any of your identity. Just a day ago, Bitmex posted it on their twitter page that they have make KYC mandatory so it seem like a wrong timing for you as you will need to provide KYC document in order to move your coin. This is inevitable https://twitter.com/BitMEX/status/1294076436811321344

I agree with you completely, but it is what happens. Not so much an IP changing when the geographical location is roughly the same, but we see time and again people having their accounts locked because they logged in via Tor or a different VPN server in a different country than they usually do. Much like mixers and coinjoins, centralized exchanges don't like anything which is good for privacy.

Yup. They won't be the first and they won't be the last to pull off this kind of shady move. Centralized exchanges do this all the time - hold your coins hostage and demand that you give up your privacy and risk your information to be allowed to have your coins back. It's extremely unethical.

Any time you use a centralized exchange you risk having to complete KYC to be allowed to have your coins back. Regardless of what they promise in their advertising, their Terms of Use will tell a very different story.

If you are willing to provide your KYC just to get your funds then this problem can solve easily if in case the Bitmex owner will not porfeit your money as you were
tagged as violators to their terms of service.

Their requirement is not that hard to give if in case you are ready to submit your KYC or you can just hire someones KYC if it is possible to do so. As in my case I really
hate giving my own KYC for the sake of money.

Yeah, just be careful not to buy someone else's stolen dox (screwing yourself over and possibly a stranger), and perhaps instead have a helpful person you can always reach if an exchange starts making more demands for KYC, or selfies/verifications over skype.

wow, how did i miss this? with deribit and now bitmex falling in line, the wild west is really coming to an end. :-\

after it becomes official, i assume traffic will flow elsewhere---bitmex is horrible for so many reasons that KYC must be a deal breaker for many.

what will be the new chosen casino? bybit? are there any other contenders? kucoin futures caps leverage on unverified users at 5x IIRC so probably not them.

Surely volume and action wins out even when KYC is introduced? I've never really seen anywhere else mentioned as a serious rival. There's Bitmex and then there's everyone else. And everyone else seems weak and fragmented.

you really think bitmex can retain its volume and liquidity levels with mandatory KYC? i don't really believe that, especially given their perpetually sub-par trading engine performance. so many people already hate bitmex so much.

there's a very good reason why bitfinex and binance retain massive liquidity while also avoiding mandatory KYC at all costs. bitmex is not immune to that reality simply because they were the first mover in the crypto derivatives space. i'm very interested to see what comes of this.


bitmex never had to compete as a platform with mandatory KYC.

remember poloniex and bittrex in 2017? they were on top of the world during the first half of the year. then they announced mandatory KYC and their customer bases completely evaporated---and binance very quickly became the biggest altcoin exchange in the world.

There might well be risks with KYC, and it could be dangerous and useless, but none of that matters if the government is requiring an exchange to enforce KYC procedures.  I don't think BitMEX was just itching to spring this on all of their customers.

Also, this is a typical crypto news site article that's poorly written:


Not that mainstream journalism is much better, but don't any of these sites do any proofreading before publishing articles?

Eh, probably they'll have a drop in volume but I wouldn't expect it to be too drastic.  It isn't like there are many no-KYC exchange options out there that BitMEX customers can migrate to.

my understanding is there is a ~6 month grace period to complete KYC. after that february 2021 deadline, KYC is officially mandatory and unverified accounts will have trading/withdrawal privileges revoked.


bitmex and binance were both built on mass commission-based referral campaigns on crypto twitter during the 2017 bubble. another platform could rise to prominence the exact same way when bitmex goes full KYC, because they will create a vacuum in the space IMO.

influencers on crypto twitter have a big interest in that too---they will make huge profits from referrals by advertising a new, growing site. combine that with another bubble like 2017 and i think bitmex could be replaced fairly easily.