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Author Topic: How can tainted coins becomes hard to be recognized by centralized services  (Read 565 times)
pooya87
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August 19, 2021, 04:00:52 AM
Merited by o_e_l_e_o (4)
 #41

In the end, there would probably be lawyers involved and such, and much money spend on them, but it is something to ponder.
Here is something else to ponder. What happens when the "lord of drug" Alice sends her tainted USD to Bob then Bob to Chris, etc. And here is a better question to ask, why is bitcoin being treated differently here?

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August 19, 2021, 04:07:58 AM
Merited by o_e_l_e_o (4), pooya87 (2)
 #42

What would be the repercussions if you did wind up with 'tainted' coins but they were tainted after the fact so to speak.
None. So long as you're not involved in any illicit activities, you should not be subjected to any sanctions or criminal proceedings. You are not aware of the activities and more importantly, you aren't the person involved in it. It is pure BS to be treating those Bitcoins to be tainted, because as usual, taint is a terrible concept to deny legitimate users from using Bitcoin. If anything it is more of a ploy by regulatory bodies to discourage people from using Bitcoin.

If you are using any exchanges that discriminates (so to speak) tainted coins, then I suggest you to switch to another. There can be a myriad of reasons for them to hold your coins hostage or to freeze your account, "tainted" TX is just one of them.

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August 19, 2021, 11:54:40 PM
 #43

What would be the repercussions if you did wind up with 'tainted' coins but they were tainted after the fact so to speak.
None. So long as you're not involved in any illicit activities, you should not be subjected to any sanctions or criminal proceedings. You are not aware of the activities and more importantly, you aren't the person involved in it. It is pure BS to be treating those Bitcoins to be tainted, because as usual, taint is a terrible concept to deny legitimate users from using Bitcoin. If anything it is more of a ploy by regulatory bodies to discourage people from using Bitcoin.

If you are using any exchanges that discriminates (so to speak) tainted coins, then I suggest you to switch to another. There can be a myriad of reasons for them to hold your coins hostage or to freeze your account, "tainted" TX is just one of them.

I was thinking more along the lines of having an exchange suspending your account or holding your funds. Not so much sanctions or criminal proceedings. Kind of like no matter how many times a stolen item changes hands, the last person holding it is the one that has to give it back to the owner. Sorry if I did not make that clear, stupid busy at work and at times it can take an hour to post 5 lines of text.

As for the switching to another exchange, here in the US they all do it to some degree if they allow conversion to fiat. BitPay, although it has other issues seems to do it the least, or at least has no complaints about them doing that. Coinbase / Gemini / Kraken seem to all have about the same number of people complaining about it.

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August 20, 2021, 01:09:08 PM
Merited by pooya87 (2)
 #44

Here is something else to ponder. What happens when the "lord of drug" Alice sends her tainted USD to Bob then Bob to Chris, etc. And here is a better question to ask, why is bitcoin being treated differently here?
Nothing happens because tracking cash is much more difficult than following the blockchain trail. But if Alice used PayPal, bank, WU, a CC, or some other trackable processor, the authorities could question the connected people about their relationship to Alice the drug lord.

Bitcoin is being treated differently because the state doesn't like what it doesn't see or have a way to control, and they are the ones in power, not us. That's why there is a problem with Bitcoin "taint", but there is no problem circulating physical cash that was previously involved in the drug trade, human trafficking, illegal prostitution etc. Corrupt officials also don't seem to have a problem taking a cut from "tainted" USDs.      

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August 20, 2021, 01:38:54 PM
 #45

Corrupt officials also don't seem to have a problem taking a cut from "tainted" USDs.      

It's something we've seen many times in history, and who knows a little better about the history of drug cartels in Colombia and Mexico some 35 years ago, knows that drug cartels bought entire governments, including presidents - all with the help of the US dollar and one very dirty agencies from the US.

Also, today it is not strange for them to seize cryptocurrencies that they declare dirty, and then wash them through the auction process and return them to the system which will sooner or later taint those coins again. How long will it take until some genius comes up with the idea that all BTC must be cleaned, and then it will return to the system according to some new rules - your coins, our private keys...

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August 20, 2021, 04:40:00 PM
 #46

Nothing happens because tracking cash is much more difficult than following the blockchain trail.
Yes, exactly, that is why bandits, kidnappers and many other criminals prefer Fiat in cash, it is not traceable and tainted-resistant because it can not be tainted. Like the recent hack, all the addresses have been known, will be tracked and monitored, what Fiat in cash can not give. We can even see thieves robbing banks successfully without being able to trace the money stolen. 

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