bitcoin from illegal activities

[indbitcoin]

I'm curious now what they called the bitcoin from illegal activities. I know it but just forgot the term they called it.  Just like the bitcoin from alphabay and other sites from tor. I wanna know how they make it become clean bitcoin except using mixers. Maybe there is a wallet now that will make it a fresh bitcoin without the stain from illegal activities. Or it still the mixers they used?

[Snorek]

Bitcoins used in illegal activities are called "tainted coins". As far as I know there is no way to 'clean' tainted coins other than mix it.
There never be any other service where you will be able to exchange 'tainted coins' for 'fresh coins'. Tainted coins will be tainted forever.

[Amph]

there is no other way other than mixing, it is what it was done with the siezed coins from us marshal office in 2014

[mexxer-2]

there is no other way other than mixing

Buying "untainted coins"? Or in other words, unused, "freshly" mined coins

[DannyHamilton]

While some people have tried to use the word "tainted" to describe transactions that have occurred in relation to various activities that any individual might consider illegal or immoral, since bitcoin isn't under the control of any specific legal jurisdiction it is nearly impossible to determine which (if any) bitcoins actually are or are not "tainted".

Bitcoins are a fungible commodity and as such any 1 bitcoin or portion of a bitcoin is functionally equivalent to any other.  People who are concerned that their transactions might be tracked have been known to use "mixers" or "shared send transactions" to make it more difficult to track where the bitcoins "came from" or where they "went to".  It is difficult to know if any particular service is actually doing a good job of hiding activity, and entirely possible that some services are being run by government agencies so that they can secretly maintain a database of the source and destination of each "mixed" quantity.

[mobnepal]

Mixing is only to hide the transaction, there will be no thing like clean, white, black, tainted bitcoin like you have with other paper money. Nobody can find out the source of your bitcoin. So whatever type of bitcoin you have you can exchange it or use it without restriction.

[QuestionAuthority]

Just curious OP, how many Bitcoins did you steal? The quantity will determine how you go about washing them.

[jonald_fyookball]

entirely possible that some services are being run by government agencies so that they can secretly maintain a database of the source and destination of each "mixed" quantity.

I think it is unlikely because taint is not proof of ownership.

Imagine the following scenario:

Alice sells 1 BTC worth of cocaine to an undercover DEA agent and
then sends that 1 BTC to Bob for a loan.

Bob tries to sell the 1 BTC to coinbase and cash it out.

DEA agents show up at Bob's house.

Bob says: "But that Bitcoin came from Alice!  I never sold any cocaine!"

How does the DEA know whether the Bitcoin (which has 100% taint)
came from a third party or was simply passed from one address to
another?  (They can't).

[franky1]

there is no other way other than mixing, it is what it was done with the siezed coins from us marshal office in 2014

future solution
make silk road only use 'dash' (darkcoin)
then let the druggies play with dash coins illegally and then swap for clean bitcoins. that way bitcoin doesnt touch silkroad directly

[StevenS]

future solution
make silk road only use 'dash' (darkcoin)
then let the druggies play with dash coins illegally and then swap for clean bitcoins. that way bitcoin doesnt touch silkroad directly

That would make 'dash' less valuable (and likely much more volatile) than Bitcoin.

Who would "make" them use a particular coin?

[franky1]

future solution
make silk road only use 'dash' (darkcoin)
then let the druggies play with dash coins illegally and then swap for clean bitcoins. that way bitcoin doesnt touch silkroad directly

That would make 'dash' less valuable (and likely much more volatile) than Bitcoin.

Who would "make" them use a particular coin?

well what do you think dash was invented for..
the whole point of dash's extra anonymity features was to be used for the dark market.. so let them play with the dark market and sever bitcoins tie to that stuff

[Jet Cash]

I'm happy to buy any "tainted" Bitcoins at 75% of market value. Am I being stupid?

[eternalgloom]

I'm happy to buy any "tainted" Bitcoins at 75% of market value. Am I being stupid?

I'd think almost all coins, except freshly mines ones have been tainted by some form of illegal activity, that doesn't make those coins any less valuable.
Compare it to cash used for drugs deals, doesn't lower the value of it and you can spend it just as you would with a new printed note.

[DannyHamilton]

- snip -
Imagine the following scenario:
- snip -

Ok, now imagine this scenario:

Alice buys 1 BTC from coinbase after confirming her identity.
Alice sends the 1 BTC through a mixer to an undercover DEA agent online to buy cocaine and supplies her mailing address.
Instead of shipping the cocaine, the DEA knocks down her door and arrests her.
She tries to claim that someone else must have ordered and paid for the cocaine to be delivered to her address to "set her up".
Since the DEA is running the mixer, they can prove that the bitcoins that were sent from her coinbase account were destined for the DEA undercover agent's address.

[DeathAngel]

Just curious OP, how many Bitcoins did you steal? The quantity will determine how you go about washing them.

That's exactly what I thought. A nice new alt to ask questions how best to clean coins that he/she gained from let's say 'suspicious means'.

I've never used a mixer & I don't see the need for them if you're an honest bitcoin user?

[Amph]

there is no other way other than mixing, it is what it was done with the siezed coins from us marshal office in 2014

future solution
make silk road only use 'dash' (darkcoin)
then let the druggies play with dash coins illegally and then swap for clean bitcoins. that way bitcoin doesnt touch silkroad directly

i think, if those seized coin are stolen again(would be hilarious) they can be sent to a sidechain with zero knowledge feature, like the one of monero, and than submitted again to other subchain with the same future

this can certainly strengthen the anonimity of those coins to the point that the they will not be recognizable

[tothebitcoinlife]

Won't you get any problem with mixer? Wont you get the bitcoin in the mixer which came from illegal activity? I mean you are the one who will be tracked mistakenly?

[krunox123]

I wanna know how they make it become clean bitcoin except using mixers.

An alternative way to get clean Bitcoin is to mine a block.

Maybe there is a wallet now that will make it a fresh bitcoin without the stain from illegal activities.

AFAIK, there is no wallet can do such thing. Is there?

[allthingsluxury]

Cash is used for lots of illegal activities too. Bitcoin has its pros and its cons, but overall it is for the good and so are its users.

[Mr. Forum]

The process is always irreversible. Once you have the tainted coins, they an only be used for illegal actions and will never be exchanged to the get the bitcoins that are very clean. I however do believe that with time, this whole issue of tainted coins will be done away with. These are some of the things that have made it very difficult for the bitcoin to be accepted as a legal currency in most of the countries. Doing away with them will be of great value  to the world of clean bitcoins.