bitcoin from illegal activities

[nioc]

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.

how can you determine whether or not the coins are tainted?  I am assuming there is not a big flag on them that says, hey I am a tainted coin!! lol.  I am seriously interested how you can tell if they are tainted or how you can verify whether or not they are tainted.

There is no any "flag" on bitcoins. But because all bitcoin transactions are traceable and public, blockchain analysis and forensic companies are starting to pop up. Just one example:
http://uk.businessinsider.com/bitcoin-elliptic-startup-anti-money-laundering-tool-get-banks-interested-cryptocurrency-2015-6?r=US&IR=T

These companies aim at identifying "bad" bitcoins so that merchants can avoid them and law enforcement track.

And another one...... http://coinalytics.co/
and yes there are more
and the point being companies will/are using them

[Spoetnik]

How do you hide the Ransomware authors BTC they make ? (325 million a year estimated)
Where do you think it's spent ?

Bear in mind that while these coins are technically used for illegal activity, most ransomware victims have nothing to do with each other, nor engage in repeated transactions (somewhat different from say DNM drug buyers and sellers, gamblers, etc.) which makes the coins themselves are relatively clean from the perspective of blockchain analysis. I would not be surprised if those coins were used to fund the "clean coins" that come out of mixers run by the same ransomware operators. But that is just a guess.

I bet it is repeated activity from the Malware pushers..
They lure in victims then have a pipeline to the same routes to launder their proceeds.
The same went on for ages in the hacker scene with Rootkit Botnet op's run by Russian underground organized crime.
I have a source code package for Zuess which was traded underground on Russian forums..
they were selling for around 10 grand i heard.. it was of course Antivirus undetectable.
Looking at the c++ code i was impressed.. good god was this a massive project.
Those guys simply switched to targeting users with Bitcoin Ransomware
And who better to target than the guys who already have bitcoin LOL

Anyway funny how smooth posts twice and smoothie posts twice at the same time.. again.
Do you two simply have an alert system to jump on topics together or what ?

[yoona]

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?

So, what is the difference between fresh bitcoin without the stain from illegal activities with bitcoin that has been used for illegal activities? whether fresh bitcoin sooner or profitable...

[owm123]

Blacklist still.  hor=yoona link=topic=1316088.msg13473198#msg13473198 date=1452158079]

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?

So, what is the difference between fresh bitcoin without the stain from illegal activities with bitcoin that has been used for illegal activities? whether fresh bitcoin sooner or profitable...
[/quote]

Blacklists. If you transact with bitcoins tainted with illegal activities,  you may one day be in this situation as below.

http://reddit.com/r/Bitcoin/comments/3mea6b/bitpay_is_blacklisting_certain_bitcoins_rejecting

[jonald_fyookball]

Blacklist still.  hor=yoona link=topic=1316088.msg13473198#msg13473198 date=1452158079]

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?

So, what is the difference between fresh bitcoin without the stain from illegal activities with bitcoin that has been used for illegal activities? whether fresh bitcoin sooner or profitable...

Blacklists. If you transact with bitcoins tainted with illegal activities,  you may one day be in this situation as below.

http://reddit.com/r/Bitcoin/comments/3mea6b/bitpay_is_blacklisting_certain_bitcoins_rejecting

[/quote]

Fuck you bitpay!  Fuck you and die.

[countryfree]

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.

how can you determine whether or not the coins are tainted?  I am assuming there is not a big flag on them that says, hey I am a tainted coin!! lol.  I am seriously interested how you can tell if they are tainted or how you can verify whether or not they are tainted.

There is no any "flag" on bitcoins. But because all bitcoin transactions are traceable and public, blockchain analysis and forensic companies are starting to pop up. Just one example:
http://uk.businessinsider.com/bitcoin-elliptic-startup-anti-money-laundering-tool-get-banks-interested-cryptocurrency-2015-6?r=US&IR=T

These companies aim at identifying "bad" bitcoins so that merchants can avoid them and law enforcement track.

And another one...... http://coinalytics.co/
and yes there are more
and the point being companies will/are using them

You don't need to use those presumably expensive companies to find out about someone. This service is free:

https://blockchain.info/taint/your-address

And the service it gives is more than enough for most people. Now, who has ever used it? I've checked my address to see what it looked like, but I haven't checked any other.

[ajun96]

in my country ever happened squeeze in a mall, an IT student extortion by threatening to blow up the mall,
The ransom is 100 BTC or mall will be in explosion LOL
http://metro.sindonews.com/read/1057673/170/pengebom-mall-alam-sutera-pemeras-pertama-yang-gunakan-bitcoin-1446226387

[Undermood]

in my country ever happened squeeze in a mall, an IT student extortion by threatening to blow up the mall,
The ransom is 100 BTC or mall will be in explosion LOL
http://metro.sindonews.com/read/1057673/170/pengebom-mall-alam-sutera-pemeras-pertama-yang-gunakan-bitcoin-1446226387

yes, ppl always find ways to clean Bitcoin. Comparing with fiat, bitcoin is a perfect money to cater the needs of criminals. It is sent and received without phisical meetup. The days criminals asked ransom to be sent to Switzerland Bank or put in the bins of some corners had gone.

[gilangIDR]

bitcoin significantly is not illegal. which makes it illegal is how to use it.

[owm123]

in my country ever happened squeeze in a mall, an IT student extortion by threatening to blow up the mall,
The ransom is 100 BTC or mall will be in explosion LOL
http://metro.sindonews.com/read/1057673/170/pengebom-mall-alam-sutera-pemeras-pertama-yang-gunakan-bitcoin-1446226387

yes, ppl always find ways to clean Bitcoin. Comparing with fiat, bitcoin is a perfect money to cater the needs of criminals. It is sent and received without phisical meetup. The days criminals asked ransom to be sent to Switzerland Bank or put in the bins of some corners had gone.

And all this makes bad press and reputation for Bitcoin. Maybe if criminals learned that bitcoin is not that anonymous, that could reduce its use for illegal activites. They should read bitcoin.org or check what bitcoin core devs say about Bitcoin's anonymity and privacy. For example:

Jeff Garzik:
 > its pretty blib and dumb to do a lot of illegal transactions on bitcoin when it's so easily traceable [4:33]
https://www.youtube.com/watch?v=9p9M1IU2k50

Greg Maxwell:

> Bitcoin uses pseudonymity. [It is] fragile at best. Paying someone usually leaks your identity and finiancial information [37:20]
> This lack of privacy is often cited as a concern by many parties [38:05]
https://youtu.be/9pyVvq-vrrM?list=LLXpTGsw6ZxgMpQB8vQC60BQ&t=2107

The same goes for stupid jurnalists who always write that bitcoin is anonymous, when it is not. they can be bother to read even bitcoin.org, before their stupid stories.

Much more at http://www.bitcoinisnotanonymous.com/

[ajun96]

in my country ever happened squeeze in a mall, an IT student extortion by threatening to blow up the mall,
The ransom is 100 BTC or mall will be in explosion LOL
http://metro.sindonews.com/read/1057673/170/pengebom-mall-alam-sutera-pemeras-pertama-yang-gunakan-bitcoin-1446226387

yes, ppl always find ways to clean Bitcoin. Comparing with fiat, bitcoin is a perfect money to cater the needs of criminals. It is sent and received without phisical meetup. The days criminals asked ransom to be sent to Switzerland Bank or put in the bins of some corners had gone.

haha evolution of new forms of crime, ransom with bitcoin
swiss bank is not interesting anymore, bitcoin is considered more secure and safer for criminals
how do we resolve this?

[owm123]

in my country ever happened squeeze in a mall, an IT student extortion by threatening to blow up the mall,
The ransom is 100 BTC or mall will be in explosion LOL
http://metro.sindonews.com/read/1057673/170/pengebom-mall-alam-sutera-pemeras-pertama-yang-gunakan-bitcoin-1446226387

yes, ppl always find ways to clean Bitcoin. Comparing with fiat, bitcoin is a perfect money to cater the needs of criminals. It is sent and received without phisical meetup. The days criminals asked ransom to be sent to Switzerland Bank or put in the bins of some corners had gone.

haha evolution of new forms of crime, ransom with bitcoin
swiss bank is not interesting anymore, bitcoin is considered more secure and safer for criminals
how do we resolve this?

Just more case for press to write how Bitcoin is primarily used by criminals. This is exactly what Bitcoin needs to appeal to general population \s.

[rustynailer]

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?

Shadowcash has a feature where you can send your private coins to any public sdc address, now your coins will appear on the blockchain as new freshly minted coins just like the mined ones with absolutely no transaction history.

[iCEBREAKER]

[Shinpako09]

Im just confused. Why? can government trace if the coins are tainted or not? Bitcoin is anonymous right, so why bothered if its tainted or not?

[rustynailer]

If you can trust these 3rd parties to not give up that info, then sure go ahead and use these centralized services.

[owm123]

Im just confused. Why? can government trace if the coins are tainted or not? Bitcoin is anonymous right, so why bothered if its tainted or not?

Unfortunately bitcoin is not anonymous. Please read bitcoin.org!
https://bitcoin.org/en/you-need-to-know

Bitcoin is not anonymous

https://bitcoin.org/en/faq#is-bitcoin-anonymous

Bitcoin is not anonymous and cannot offer the same level of privacy as cash.

The use of Bitcoin leaves extensive public records.

More resources on this topic can be found here: http://www.bitcoinisnotanonymous.com/

[justspare]

Bitcoin is not the problem, the people that is use bitcoin are the problem. 

[iCEBREAKER]

If you can trust these 3rd parties to not give up that info, then sure go ahead and use these centralized services.

What info?  The IP of your TOR exit node?

I'm pretty sure Peter Todd knows what he's doing, and took that risk into account.

[rustynailer]

If you can trust these 3rd parties to not give up that info, then sure go ahead and use these centralized services.

What info?  The IP of your TOR exit node?

I'm pretty sure Peter Todd knows what he's doing, and took that risk into account.

If it meant life in jail then I dont think I would want to take "that risk".