Tainted coins

[siniminomorocomunisakito]

Please where are sources of those tainted transactions that are big with 50.000 and 100.000 BTC.

One source for one part: https://thedefiant.io/us-gov-moves-1b-seized-btc

Another source for the other part (german): https://www.btc-echo.de/schlagzeilen/mt-gox-insolvente-bitcoin-boerse-verschiebt-rueckzahlung-160739/

The timestamp was early March 2023.

The first source is about 40.000 BTC (seized through the US governement) transfered for selling to Coinbase.

The second source is about the payback of the frozen/seized Mt.Gox Bitcoins.

My opinion Contaminated coins, which refer to Bitcoins associated with illegal activity or criminal transactions, can pose a significant risk to both users and exchanges.

From both incidents I think As the industry continues to grow and mature, it is important for regulators to work closely with stakeholders to ensure that laws and regulations are effectively enforced, and wrongdoers are held to account. This will help promote trust and confidence in cryptocurrencies, making them more accessible to mainstream users and investors.

[Despairo]

It's a tough situation, but perhaps Bitcoin could implement some kind of tracking system to prevent tainted coins from being used in transactions. This could help protect both buyers and sellers

Bitcoin is decentralized, if you suggest to implement such kind system it means Bitcoin no longer decentralized. You don't need to create a tracking system because Bitcoin is using public blockchain and anyone can see any transactions, address and the balance.

I guess the lesson here is to always do your due diligence before accepting Bitcoin as payment. You wouldn't want to unknowingly get mixed up with any dirty coins.

Let's say you're asking everyone about the original coins they got, do you think a criminal will answer if the coins got from hacking a centralized exchange?

[Wind_FURY]

It's a tough situation, but perhaps Bitcoin could implement some kind of tracking system to prevent tainted coins from being used in transactions. This could help protect both buyers and sellers

"Taint" doesn't exist in the blockchain, it's better to leave your UTXOs alone. But if you truly want to make sure that you don't have "tainted" outputs, then try letting them pass through Wasabi Wallet's centralized coordinator. nopara73, Wasabi's developer, works with Chainalysis to "track" tainted outputs.

[Hamza2424]

I think Bitcoin has a big problem with tainted coins and the demand to be a store of value.
My example:
X gets 1 BTC through a criminal act. X is trading something for 1 BTC with Y. The Police is blacklisting the 1 BTC and confiscated the 1 BTC from Y.
This is a 100 percent loss of value for Y.
Then the FBI is selling the 1 BTC, often under value. This is an overall decreasing of value for Bitcoin.

Haha, What is this ?? Bro... Are you serious?
I am a bit confused now after the chip mixer incident and SEC's strong policies against the crypto market, especially around the miners and Bitcoin accumulators. A maximum of the newbie and other members' topics in the Bitcoin discussion from the last few weeks are around Bitcoin and criminal acts and everyone is trying to prove something trying to defend BTC with stupid facts or vice versa. I would like to say there is no need for this.

You know what BTC is I know so what. Let others think whatever they want to why waste valuable energy explaining to those who don't want to understand and want to be deaf & blind so let them bee. What value are these topics are adding in the Bitcoin Disucssionshould be on a good topic and now these days topics be like just for merit fishing and bla bla bla.

[Bialke]

"Taint" doesn't exist in the blockchain, (...)

But in the laws (of various countrys).

If a 8 year old is producing a block in the BTC network, it is illegal in Germany. If a drug dealer is selling drugs for BTC, it is illegal in the USA. And the authorities of these countrys are tagging the coins and adresses. This is the fact. Basically if one country is defining BTC as a good, the good can be stolen. And the receiving and/or buying of this stolen good is/can be illegal.

The BTC network cared for these illegal activities. But most of the answers were: It is a small problem in relation to the benefits. But the answer is not solving the problem. The same problem is existing with FIAT. But partly solutions are restrictions of the trading amounts, KYC and tax investigations/trackings. And of course physical markings with special colours or tracked bill numbers.

Basically every Satoshi could pegged (by the BTC network) to a NFT. And if one country is blacklisting it - because of the law - it would not be tradeable in this country. So in the end the price of this one Satoshi would become less value as another Satoshi.