Want to use wasabi wallet to coinjoin or mixers are better

[Oshosondy]

For privacy reasons I want to use wasabi wallet to cojoin, but I am still having doubt about it, I believe good members will be able to give me genuine answer to this.

Normally, I make use of exchange like binance to trade, I am thinking of moving my bitcoin on binance to my wazaybi wallet first and conjoin it into my electrum wallet. But, I will later still decide to send the bitcoin back to binance, trade, and still send back to wallet.

I am hearing that it is possible that if I coinjoin bitcoin transaction(s) that all those custodial exchanges can possibly freeze my account, is this true? Or I should use mixer instead.

[AdolfinWolf]

Thread seems more suitable for #service-discussion, but I think the answer tends to be a general "yes". centralized exchanges can freeze your funds for any reason as far as i'm aware.

I have no first hand experiences, but a quick google search turns up some interesting results, have you given this a read? https://www.reddit.com/r/CryptoCurrency/comments/ecud4w/binance_freezes_btc_linked_to_wasabi_coinjoin_and/

It seems that at the very least, you could (at least in the past) encounter issues when WITHDRAWING to wasabi? Not sure how that would even be detected; admittedly, i'm not that familiar with them.

[Oshosondy]

...

Thanks for the answer, it is pretty now clear not to use wasabi for this, using a mixer will be better. The best is to never use wasabi wallet with custodial exchanges, there was a report I hear recently about this too that got me confused but now know to better use mixers.

[AdolfinWolf]

...

Thanks for the answer, it is pretty now clear not to use wasabi for this, using a mixer will be better. The best is to never use wasabi wallet with custodial exchanges, there was a report I hear recently about this too that got me confused but now know to better use mixers.

Hmm, well I certainly wouldn't know why binance would be more accepting of a mixer such as chipmixer versus something like wasabi, they essentially provide the same service right? Tumbling coins?

[ranochigo]

CoinJoin transactions can inevitably taint whichever transaction that you are making due to it's nature as something that obfuscate the destination address from the outsiders but not necessarily resulting in a complete breakage of links. It is fairly obvious when transactions are actually CoinJoin transactions since they are usually of a huge size as well as having multiple outputs of the same size. Sending to an exchange using a CoinJoin could be a bad idea, they tend to lock accounts that do that for frivolous reasons obviously.

ChipMixers or other mixers in general has distinct behaviors but not necessarily enough for outsiders to pinpoint if they're from a mixer or not.

tl;dr: Exchange can and will freeze your accounts for the dumbest reasons. CoinJoin transactions are easy to identify, transactions from mixers are not so distinguishable.

[o_e_l_e_o]

Normally, I make use of exchange like binance to trade, I am thinking of moving my bitcoin on binance to my wazaybi wallet first and conjoin it into my electrum wallet. But, I will later still decide to send the bitcoin back to binance, trade, and still send back to wallet.

If you are planning to withdraw the coins from Binance, hold them for a while, and then send them back to Binance to trade, then I don't see the point in using a mixer or coinjoin in this situation. The only thing that mixing or coinjoin does here is stop Binance from seeing exactly which address(es) you are holding your coins in. They will still have complete knowledge of how much you have withdrawn and how much you are depositing.

At the end of the day, you can never say with 100% certainty that your coins won't be frozen for using either of these technologies. If you are just planning on using these coins to go back and forth to Binance then you are probably safer not using them at all, and only using them when you are moving your coins to a different exchange/service/merchant/etc and you don't want Binance tracking those movements.

[AdolfinWolf]

Unless those mixer have traceable behavior (see Breaking Mixing Services).

I was about to say; if there is any service which gives you extremely distinguished inputs, it's chipmixer . Not sure how it would compare to coinjoin transactions though.

[ranochigo]

Unless those mixer have traceable behavior (see Breaking Mixing Services).

I was about to say; if there is any service which gives you extremely distinguished inputs, it's chipmixer . Not sure what ranochigo means by this.

Yes. It doesn't matter if the mixers are traceable or not. The reason why exchanges suspend accounts associated with CoinJoin because they are really easy to tell.

ChipMixer's chips are obvious as well, but not as obvious as CoinJoin transactions. Having a transaction with a nicely rounded input with previous transaction being used to split them into individual UTXOs of similar amounts doesn't necessarily mean that it is from ChipMixer. CoinJoin transactions are very obvious; many inputs and many outputs with some of them being the same size. Exchange wouldn't suspend you for sending from or to a ChipMixer address, they can't tell with absolute certainty that it is from ChipMixer. As an exchange, you would rather err on the side of caution and not point fingers at things that you can't be absolutely sure about.

[The Cryptovator]

Simply I will ask to use a reputed mixer. I can't recall the thread or post, but I have heard a few exchanges suspend an account due to funds transacted from CoinJoin. Just imagine if CoinJoin could do everything then why peoples should use a mixer and how are big mixers running their business? On the other hand, if funds came from Binance and you want to deposit them again there then I don't think there is any risk except privacy issue. If you don't want to share your personal bitcoin wallet then just use a Mixer. It doesn't necessary to take a risk of suspending your account.

[Oshosondy]

Simply I will ask to use a reputed mixer. I can't recall the thread or post, but I have heard a few exchanges suspend an account due to funds transacted from CoinJoin.

Yes, I have read online about freezing of accounts due to coinjoin, here is another one posted above, I have heard several ccases of this and thinking to use mixers.

https://www.reddit.com/r/CryptoCurrency/comments/ecud4w/binance_freezes_btc_linked_to_wasabi_coinjoin_and/

Using a mixer will be the best on my side, thank you all for your guidance.