What is stopping a troll from tainting dozens of whale wallets with tainted Btc?

[Anonohmon]

So you know how some exchanges will freeze or reject "tainted" bitcoin?

Bitcoin from coinjoins, or bitcoin known to be associated with silk road 'type' places?

What if someone fed up with not being able to offload their tainted bitcoins send small amounts of theirs to public addresses that have lots of bitcoin.

Would doing that, taint those larger addresses if those whales then sent their bitcoin to an exchange like Coinbase?

How does it work, do these exchanges treat every wallet connected with a tainted wallet as also tainted or do they treat them as separate individuals?

Meaning a tainted bitcoin wallet could just open a new fresh bitcoin wallet and transfer their tainted bitcoins to that new fresh wallet as like a new identity... since you know it could very well be a new totally different person. You wouldn't know.

[Charles-Tim]

Bitcoin from coinjoin can be and would probably be seen as tainted by exchanges, any coin linked to illegal activities are tainted.

Bitcoin from coinjoins, or bitcoin known to be associated with silk road 'type' places?

Yes

What if someone fed up with not being able to offload their tainted bitcoins send small amounts of theirs to public addresses that have lots of bitcoin.

Never use a centralized exchange. Or split the coins and send in like 5 to 10 different transactions to address you owned and split it the more, wait for like hours or even days before each transaction, the longer the better.

Would doing that, taint those larger addresses if those whales then sent their bitcoin to an exchange like Coinbase?

Coinbase is a centralized exchange and the coin will be seized and ID documents will be required.

How does it work, do these exchanges treat every wallet connected with a tainted wallet as also tainted or do they treat them as separate individuals?

No. Addresses. But it is possible that many addresses can be connected together. Another is a centralized server of a SPV wallet linking many addresses of the same wallet together and also with the IP address used.

Do not get yourself in anything that is illegal, this is just a means to avoid your coin to be seen as tainted.

[hatshepsut93]

Human factor. If whale's transaction will get frozen, they will contact customer support and explain to them that they have no business with the taint transaction, and customer support will unfreeze it, because the company wouldn't want to lose a big customer and go to court for stealing funds.

"Taint" is not an objective metric, it's basically a way for law enforcement to look at coins and conclude that they might have been involved in criminal activity. It doesn't even have any legal meaning, it's just a heuristic.

[Anonohmon]

Human factor. If whale's transaction will get frozen, they will contact customer support and explain to them that they have no business with the taint transaction, and customer support will unfreeze it, because the company wouldn't want to lose a big customer and go to court for stealing funds.

"Taint" is not an objective metric, it's basically a way for law enforcement to look at coins and conclude that they might have been involved in criminal activity. It doesn't even have any legal meaning, it's just a heuristic.

I guess at most it would be a minor to major inconvenience depending on how long it takes for their funds to be unfrozen.

[NotATether]

Exchcanges would treat such addresses as separate persons as their transaction histories are different - nevertheless, those funds would most likely also be frozen unless it was a dust amount: < $10 for example.

So it's down to nobody wants to waste their coins to taint other peoples' coins. They find it much easier to troll right here on this forum, proclaiming how BTC is going to go to zero and such.

[bittraffic]

Whale wallets with clean coins are probably known to the exchanges by now. I fall of a sudden they receive dust of tainted coins, the whales will just thank the troll.

Bitcoin from coinjoin can be and would probably be seen as tainted by exchanges, any coin linked to illegal activities are tainted.

Would they do the same for the coins going out from wasabi wallets?

It does sound like they are working alike making the coins handled by a pool and going out clean, sending those coins to a dex and out to a centralize exchanges will likely be seen as clean coins.

[davis196]

Bitcoin mixers are a thing. Weren't Bitcoin mixers created with the sole purpose of "cleaning" tainted coins?
Why would a criminal waste all his tainted coins, when he could just clean them by using a Bitcoin mixer?
I'm no expert in this field, but it doesn't make any sense to me. If some random criminal sent you a thousand "dirty dollars" (without any reason whatsoever) would that make you a criminal as well? You did absolutely nothing and you have no fault(and you can prove that in court), who is going to blame you? I'm sure that the authorities and the centralized cryptocurrency exchanges aren't that dumb.
Everyone is innocent until proven guilty. We don't live in a totalitarian world(maybe we will after a few decades).

[pooya87]

So you know how some exchanges will freeze or reject "tainted" bitcoin?
Bitcoin from coinjoins, or bitcoin known to be associated with silk road 'type' places?

First of all there is no such thing as "tainted bitcoins". That is a fake term that some companies came up with so that they could make money by calling some coins "tainted".
Secondly your list contains the obvious cases, these companies working as "blockchain analysis" would consider arbitrary outputs as "tainted" too. For example they have marked a lot of coins coming out of exchanges as tainted too!

What if someone fed up with not being able to offload their tainted bitcoins send small amounts of theirs to public addresses that have lots of bitcoin.
Would doing that, taint those larger addresses if those whales then sent their bitcoin to an exchange like Coinbase?

Those companies I told you about don't really check the address, they check the outputs so it doesn't matter if the address received some so called "tainted" coins, if the transaction doesn't spend them it should be fine. Although as I said, their coins may still be marked arbitrarily!

Meaning a tainted bitcoin wallet could just open a new fresh bitcoin wallet and transfer their tainted bitcoins to that new fresh wallet as like a new identity.

There is a much better solution which is to stop using centralized services that freeze your account arbitrarily.

[Husires]

The money is not supposed to be treated as clean and polluted, but whether the transaction is legal or not, regardless of the nature of the money that was used, meaning that the same money that is used in illegal activities must be returned to be used in legal activities while punishing criminals.

Therefore, providing a minimum level of privacy is necessary for the network to be sustainable.