Wow! Exchanges track how you spend btc!

[kentrolla]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

When you signup for any exchange you agree to give your privacy into the hands of a third party. It's pretty obvious that when any exchange doesn't gives you a private key of the wallet then that exchange has whole control of your wallet. So they can surely track you to. I don't find anything like sad in this. The user should have used a private key monero wallet or should have used a good mixer so that it was impossible to track him down. There are ample of people using this it's for the very first time I have seen such a case.

Yes it is not surprising. Every user will accept terms and conditions while signing up in the exchange. Once you signed up all the data's and transactions are logged in their server and those data's are used for research and marketing reason hence there is small risks involved in these hence all the details are logged by exchanges.

[NeuroticFish]

Yes, Coinmama or any third party service provider can be put their users with limited access to their services. Not only coinmama but many other, offering wallet and exchange services to users acquiring little charge.

But in my own perspective, these all altcoin or blockchain based wallet and transaction services are decentralized, and these are known and introduced with that particular specification, in such case, if these third-party services keep watch and track on transaction done by users can lead towards monopoly. This can harmful for both users as well as an exchanger.

If things are still taking under one roof called centralization, then its quite impossible for Bitcoin in the current phase.

Clearly tracking user's actions by his money is not nice. At least, unlike who knows how many others tracking your money, these tell you in their ToS that they're watching you.
As long as Bitcoin blockchain allows it, you should be extremely naive to think that the money (bitcoin) flow is not tracked at all.

This is imho not centralization. Users are more than free to use other services. Yes, if we'll end up with a small and ever decreasing number of services, then this would be a problem. But it's not the case.

[klaaas]

exchanges are getting hard and harder with there rules.
It must have been a direct and known address he used to identify the wire.
if the wire jump multiple addresses how will the exchange know who end up as owner of the coins.

[reda]

exchanges are getting hard and harder with there rules.
It must have been a direct and known address he used to identify the wire.
if the wire jump multiple addresses how will the exchange know who end up as owner of the coins.

One more thing when the transaction made to direct bitcoin wallets and then that transaction goes to other wallets and it has been used for the any purchase means how the exchanges track the usage of individuals. Then when the each exchanges facing 1 million plus transactions each day then how they spend to track the users.
We need to think all these factors before we accepting the article shared by OP. May be he is looking for views itseems.

[djsugar]

Exchanges track many more things than that. The biggest manipulator of the price and the volume are exchanges only. They keep a track of your buy and sell order, your stop loss, you leverages etc etc and then they play accordingly. Sometimes you will find a sudden red or green candle with heavy volume resting traders in a one go. These are exchange moves only.

[MonsterV]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

This is the importance of reading Tos before using a service. Sometimes we immediately approve Tos without reading it, even though when we approve Tos it means we have to obey all the rules that exist in the service. And here coinmama is not wrong in terms of privacy, they have previously notified via high-fives, all depends on the user

[veleten]

I wonder how is this news?
exchanges have been tracking your coins, governments tracking tainted coins , blockchain offers less privacy than you think
even before Coinmama exchanges and wallets  like Coinbase or coin.ph were shutting down accounts connected to gambling wallets
if it is in their TOS it is up to you tou use their service or not , but do not complain after your accounts get shut

[okala]

I believe the user know the privacy policy of coinmama that there don't support the deposits into gambling site's where gambling is forbidden or may be the user is not aware of this privacy policy, it good to read all the terms of any exchange before using them for some transactions.

[Kensyin]

I think we must obey all the rules in the service.
maybe the user doesn't know this privacy policy
the only thing to do now, just move to the other one to exchange.

[jjbanks994]

Exchanges are required by law to know their customers also known as kyc they have to know your ID and name and address technically from a legal standpoint in order to operate legally, but there are still some exchanges which do not require this for some reason.

From the exchange's perspective it was a wise decision for both legal precautions and protecting their other customers. Firms like CipherTrace are set in place to help with money laundering and combat terrorist financing. People worry they are tracking every detail but it's really more large amounts of money

[klaaas]

someone mentioned this tweet,
If a coin joiner is build inn and become the norm trackers and 3rd party mixers wont stand a chance anymore.

[gentlemand]

From the creator of that topic - 'Bounced coin from wallet to wallet. Made multiple transactions with multiple companies. They still sniffed out where some of it went. Am I silly or is that ridiculous?'

I can understand where the exchange is coming from if he's buying and sending it straight to a gambling site from the exchange wallet. Multiple transactions and dilution down the line? That's fucked up if you ask me. By that point it's out of their hair and they should've long stopped caring. For all they know it could be in a completely different person's wallet by then.

[kingplaya4]

The exchange is ridiculous. They should only ban direct transfers from the exchange to gambling sites if their moral scruples or the long arm of the US is bothering them. Anything more than that is overkill even the most old school republican wouldn't expect them to do.

[Kakmakr]

someone mentioned this tweet,
If a coin joiner is build inn and become the norm trackers and 3rd party mixers wont stand a chance anymore.

Why? People still use more than one Anti-virus program on their computers and they will also use more than one coin tumbler method to mix their coins. You get very paranoid people out there and these people want to make sure that a single solution will not compromise their security and/or identity.

Just imagine if you donate money to an organization like Wikileaks and your government gives a 5 year jail sentence to people who donate money to sites like that, would you trust one mixing solution, when you donate to them?

[Lizzylove1]

Complete privacy coin is the way to go, just imagine someone that thought he was anonymous with bitcoin usage only to be tracked and disciplined. Although agreeing with any terms and conditions of any institution is key, again privacy must be respected too. We have some great projects coming out with good anonymous coin transfer option.

[DreamStage]

If you read their Terms of Use:

3.14. You agree that you will not use the Services to perform criminal activity of any sort, including but not limited to, money laundering, illegal gambling operations, terrorist financing, or malicious hacking. In addition, you warrant not to use methods to conceal the location from which you access the Site and that you will disclose to the Company your accurate and true location. Should the Company determine in its sole discretion that the activity on your Account is suspicious or related to any prohibited activity or illegitimate operation, the Company may cancel or suspend your Account, block any outstanding transactions, deny any new transactions, and/or freeze any funds available on your Account.

They should only ban you if you gamble with illegal operations lmao. If you gamble with legitm certified Casinos there shouldn't be any rule against it.
Unless the guy in question was in some country where gambling was illegal.

[Mandoy]

Well there is a simple explanation with that.Some cryptocurrency website has a main wallet. If you deposit a certain amount of cryptocurrency to your address on that website, those coins and tokens will be transferred to the main wallet of that site. So here is a possible explanation to the conspiracy.

It is possible that coinmama have already known the main wallet address of the gambling site maybe because it has already an encounter or an experience with that site before and it recorded their mainwallet address.

So when that user withdraw his funds from the gambling site to coinmama, the gambling site sends his withdrawn coin from its main wallet to coinmama. The problem is that when coinmama double cheks the txid they will eventually found out that the address where the the coin comes from is from a certain gambling site.

After the findings then coinmama will take necessary actions based on the users agreement.

[alyssa85]

1. I am almost sure that this guy didn't do the job as good as a mixer could do.
2. A better level of privacy would be nice. But as you said, there's Monero (and others). He could have done a way better job with Monero.

But I don't blame Coinmama, if this is in the ToS...

The easiest way to hide is to send to an exchange, buy an altcoin. Withdraw the alt to another exchange and change it back to btc, and then use it to gamble. (Or simply gamble with the alt).

Buying the alt stops the tracking.

[Pamadar]

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

When you signup for any exchange you agree to give your privacy into the hands of a third party. It's pretty obvious that when any exchange doesn't gives you a private key of the wallet then that exchange has whole control of your wallet. So they can surely track you to. I don't find anything like sad in this. The user should have used a private key monero wallet or should have used a good mixer so that it was impossible to track him down. There are ample of people using this it's for the very first time I have seen such a case.

Yes it is not surprising. Every user will accept terms and conditions while signing up in the exchange. Once you signed up all the data's and transactions are logged in their server and those data's are used for research and marketing reason hence there is small risks involved in these hence all the details are logged by exchanges.

Common when we agree, and most of those centralized exchange will ask for KYC when you needed to withdraw huge amount of your assets, by providing your data information you will now be track by any means as your logs are stored inside the system, every transactions can be traced now under your name, so there's no surprise if you are using third party serves.

[klaaas]

Why? People still use more than one Anti-virus program on their computers and they will also use more than one coin tumbler

Because it gets mixed so the amount of wallets supporting it would not matter, its a feature. The amount of times would matter inn this case.