@BitMEX old Bitcoin deposit & Coinjoin

[hugeblack]

Bitcoin Developer @kristapsk got an e-mail from BitMEX about old Bitcoin deposit transaction:

Got an e-mail from @BitMEX about old #Bitcoin deposit transaction (last summer) that "may be connected with activity that is against 1.1(a) of the HDR Terms of Service.", it was @joinmarket coinjoin.
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Would you mind sharing what additional info they requested from you?

Asked me to do KYC (will not do, I don’t care about Bitmex account anymore) and reply with details about specific transaction (likely will do, describing it’s a coinjoin).
 

Source ---> https://twitter.com/kristapsk/status/1374336620158140419

I think it is best to avoid using traditional mixing methods (coinjoin/wasabiwallet) if you intend to use a centralized platform, especially if you do not want to do identity verification.

I do not know if it is possible to deceive the system by sending Bitcoin to several addresses before collecting them again at a new address and sending it to the platform. 

[SFR10]

I do not know if it is possible to deceive the system by sending Bitcoin to several addresses before collecting them again at a new address and sending it to the platform. 

AFAIK, they ^{[or other exchanges]} haven't explicitly described the way their systems usually flag such transactions but if I have to guess, it's still going to trigger their systems ^{[regardless of its depth]} and that's mainly because of the similarities in its pattern ^{[I could be wrong]}.

[logfiles]

I think it is best to avoid using traditional mixing methods (coinjoin/wasabiwallet) if you intend to use a centralized platform, especially if you do not want to do identity verification.

Or those want their privacy to be close to 100% should completely avoid using centralized exchanges and look for suitable p2p non-KYC exchanges

What's the point of your mixing coins if you are going to later send them to a centralized exchange where the transaction trail will undergo scrutiny?

[LeGaulois]

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There is no problem to use coinjoin with a centralized service, it's all about being smart with how to use it efficiently.
How to do it has been explained so many times. If coinjoin was a real problem we would have already seen many more complaints on this subject. Even from people who never used it

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Some of them do. It's more or less written on the user agreement. They have partnerships with blockchain forensic companies like CypherTrace, ChainAnalytic, AMLbot, and so on. It's not really something secret. Some brag about their partnership on Twitter and co.

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It's true but CEXs have a few advantages that DEXs don't have. Also, you may want to use a CEX because you want to buy <insert shitcoin name> but you don't want the CEX to know that you pay a prostitute last week end