Do exchanges freeze transfers from mixers ?

[arabspaceship123]

I haven't used mixers so don't know if exchanges like Binance freezes your accounts because they've been funded from mixer linked addresses. I'd like to know what happens to your coins if you can't unlock the account.

How's it possible proving it's your funds by tracing where it's sourced from when it's from mixing?

[1715491538]

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[1715491538]

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[Upgrade00]

There was a case about a year ago, when binance froze the account of a user cause the funds were from a coin mixing service. It was later unfrozen.
Centralized exchanges can freeze your account for different reasons according to their ToS, which you agree to when you sign up. And they are regulated, so they comply to government policies.

I'd like to know what happens to your coins if you can't unlock the account.

What you see in your account is just numbers put in by the exchange and not really the coins, if anbaccount is frozen, the number of bitcoins in it would likely stay the same, but what is done with the actual coins can not be ascertained.
Of course the exchange would be able to provide the funds, should your account need to be unfrozen.

How's it possible proving it's your funds by tracing where it's sourced from when it's from mixing?

Ideally, do not use centralized exchange to transact or to store funds, especially if you are privacy inclined.

[noorman0]

If you plan to use Binance as it is today which is more "adherent" to regulations, you are putting an obvious risk.

In 2019, binance had problems with a customer who used coinjoin wasabi, luckily the funds were returned with some agreements. Just my assumption based on Binance's statement that "they don't tolerate Coinjoin", this may also apply to other bitcoin mixer services. Even now it will probably be stricter.

[michellee]

I haven't used mixers so don't know if exchanges like Binance freezes your accounts because they've been funded from mixer linked addresses? I'd like to know what happens to your coins if you can't unlock the account.

How's it possible proving it's your funds by tracing where it's sourced from when it's from mixing?

The government will always watch Binance as a centralized exchange. Binance itself will check from where the funs comes and they can easily freeze your account if they think you use mixers or gambling sites or other things that they consider illegal. Binance can do whatever they want to protect their business so I suggest you not use mixers to deposit the funds. I suggest you send the funds to the mixers and then send it into another wallet, convert it into other coins and then send it to Binance. At least, you do not directly send it from the mixers to Binance. But I am sure if you dig for more, you will find how to solve that.

[Blowon]

That looks dangerous. Some official exchanges definitely prohibit it, and it is certain that your assets will be frozen. Avoid the use of mixer transactions. It won't be accepted in a good exchange.

[Fundamentals Of]

If I were you I wouldn't take the risk. There are enough precedents that centralized exchanges like Binance give a closer look at funds coming from mixers. It is not that exchanges do not like deposits from mixer addresses but they are always compliant with the law.

Remember the case of Helix? The CEO was charged with money laundering and mixers are even branded as illegal by the government regulators. If an ordinary exchange account requires KYC in observance with AML policies, it means mixers are services obstructing the efforts.

[yazher]

That looks dangerous. Some official exchanges definitely prohibit it, and it is certain that your assets will be frozen. Avoid the use of mixer transactions. It won't be accepted in a good exchange.

I see, but It's better we have a list of those exchanges that have some hard rules against mixers because there are some exchanges that have not to comply or don't really care when the funds are coming from mixers. they only focus on the funds that are coming from online gambling sites. If your account will be freeze by sending it from the mixers then it's better to avoid those kinds of steps because it is hard to unfreeze it again if you don't have any valid reasons.

[ranochigo]

Most exchanges has ToS that either allows them to restrict your account or bar you from using the platform completely in the case of having deposits being associated with mixers or anything that goes against their ToS. Mixers have a distinct pattern and behavior that makes it trivial for exchanges to identify them, but it still doesn't break your privacy. If you are using a mixer and a centralized exchange, then you should probably reconsider your priorities; centralized exchanges will do anything to track their customers. Using a mixer merely makes their job slightly more difficult.

[pooya87]

I see, but It's better we have a list of those exchanges that have some hard rules against mixers because there are some exchanges that have not to comply or don't really care when the funds are coming from mixers. they only focus on the funds that are coming from online gambling sites. If your account will be freeze by sending it from the mixers then it's better to avoid those kinds of steps because it is hard to unfreeze it again if you don't have any valid reasons.

You want a list? Here is one: All centralized exchanges.
Don't fool yourself thinking that just because a certain centralized exchange (or any other centralized service dealing with bitcoin deposits) is not discriminating against its users it won't happen soon. They are all similar and sooner or later they will start doing the same.
For example Binance that is being discussed here didn't have such strict rules about KYC verification, last much out of nowhere they started tightening their grip and changed their rules.

[Oasisman]

The fact that Binance has become strict in terms of KYC as they made it mandatory, of course that's based on legal guidelines. They want us to be transparent with all our transactions, they don't want us to become anonymously transact with crypto.
So, there will be a huge risk accompanied with your asset when you're dealing with crypto that came directly from mixers.
Prevention is better than cure. Take everybody's advice than lossing your money.

Once they tackle another case about crypto mixers transactions, It would be expected that they'll going to put a mandatory restrictions to it the next time.

[mindrust]

As far as I know they don't do that right now but they can if they want to. I heard news about coinbase banning accounts when you receive coins from the foreign casinos or send coins to the foreign casinos and they are probably having an eye on the mixers as well. But keep in mind, coinbase is operating in the US which is a paranoiac country. On the other hand, I don't really know which country binance is operating in right now. Last time it was Malta but that might have changed. Not sure.

[joniboini]

You should make yourself familiar with dex op, especially if you use mixer already. Another alternative would be to 'swap' your BTC to something like RBTC and then swap it back. If you don't mind wasting some fee and risking your coins, I'd not recommend it though. I used Sovryn bridge to swap my BTC to RBTC in the past, it was OK, but definitely not the first choice to 'clean' your coins. Those exchanges might start collecting those bridge address and block them too.

[Vatimins]

     You know what op, Just stay clear from centralised exchanges if you value your privacy that much (I thought you value privacy since you are using a mixer) just to be safe from all the headache and hassle. Although there can be a wide variety of reasons as to why an account can be frozen, it won't be because of some trivial matter. Either they really disallow such a thing or maybe you have touched other things they disallow. One look at the rules they set first before depositing would be a good preventive measure tho.

[Fortify]

I haven't used mixers so don't know if exchanges like Binance freezes your accounts because they've been funded from mixer linked addresses? I'd like to know what happens to your coins if you can't unlock the account.

How's it possible proving it's your funds by tracing where it's sourced from when it's from mixing?

I hope you have good records for where your funds come from if you face this situation. Binance recently wanted to list their stock publicly but has since faced a backlash in certain countries and are facing investigations. What happens to the coins? They'll stay in Binances possession until you can win a court case that will force them to return the funds to you - either with or without proving the source of the original payment. I cannot think of a real legitimate reason that people would choose to use mixers, which are essentially pure money laundering tools, unless they are trying to hide funds so you might be in a tough situation. It's always worth reading the terms of a site before you use it and you might just have to accept this as an expensive lesson for the future.

[NeuroticFish]

I had once in the last 6 months money sent to Binance from funds mixed at ChipMixer. Those funds went from CM (I want to make it clear, the mixer not the campaign) to an address of mine and after a while (I don't remember if it was days or weeks) to Binance.
It's not something I do often since the risk is there, but I've done it exactly as a test. Of course, it was not big amount of money (since that's how tests are done), but in my case it worked.

It was before this late Binance-KYC drama, still, maybe my test does help somebody.

[yhiaali3]

Most exchanges believe that mixers are used for money laundering so they don't allow assets coming from mixers, of course they have the means to track those assets coming from mixers and they are of course able to freeze your account for this or any other reason, as long as you read the terms of the user agreement and agree to their terms before registering You can do nothing but write to support and petition for your account to be unfrozen if you provide sufficient evidence that your assets are clean.

[Leviathan.007]

There was a case about it one or two years but I don't think if they really do that because that's pointless and there can be many ways to bypass this strategy, generally, due to the governments and the related organizations the exchanges are forced to take every hard and be more careful about the coins they receive, but not accepting coins from mixers can not be a solution also we can not say people are doing money laundry just because of using the mixers, many people are using the mixers all the time just for their own privacy.

[impulse709]

I haven't used mixers so don't know if exchanges like Binance freezes your accounts because they've been funded from mixer linked addresses? I'd like to know what happens to your coins if you can't unlock the account.

How's it possible proving it's your funds by tracing where it's sourced from when it's from mixing?

I think that Binance exchange is one of the largest exchanges in the world, that's why trading on this exchange is called centralized trading and is heavily vetted by the exchange. and that Binance can do whatever they want to protect their exchange's reputation, so I would advise against using mixers to deposit. you should send money to mixer and then send it to another wallet, convert it to other coins and then send to Binance so it will be safer and more legal of your assets.

[Wind_FURY]

OP, if you don’t want to take the risk. There are other ways to move your coins from a known public wallet to your personal, private cold storage, which probably should be private enough, and isolated from meddlesome people and blockchain eavesdroppers.

[o_e_l_e_o]

Avoid the use of mixer transactions. It won't be accepted in a good exchange.

Avoid the use of centralized exchanges which demand the ability to spy on you and dictate your behaviors. If your exchange discriminates against mixed or otherwise obfuscated coins, then it's time to find a new exchange.

So, there will be a huge risk accompanied with your asset when you're dealing with crypto that came directly from mixers.

There will be a huge risk to your assets when you deal with exchanges which arbitrarily lock accounts and seize funds.

I cannot think of a real legitimate reason that people would choose to use mixers, which are essentially pure money laundering tools

Yawn. This argument has been debunked more times than I can count. The majority of funds being mixed come directly from exchanges or trades (i.e. people just trying to stop exchanges spying on them). There are thousands of completely legal and legitimate reasons someone would want to maintain a bit of financial privacy. If you don't see the need for privacy, then please list every address you have ever used, every transaction you have ever made, your real name, address, email addresses, social media profiles, bank statements, and internet browsing history. No? I didn't think so.


Mixers, coinjoins, and generally maintaining your privacy is not the problem here. The problem is centralized exchanges which want to spy on you and tell you what you can and cannot do with your own money. Moving away from a system like this is the entire reason bitcoin was created in the first place. Stop buying in to their rhetoric that having zero privacy is "normal" and that anything you do to try to reclaim some privacy is a problem to be addressed. Privacy is normal, and any exchange which demands that you sacrifice your privacy so they can spy on you and dictate how you use your own money is an exchange which should be abandoned immediately.