how to avoid buying blacklisted/dirty bitcoins

[duke_otc]

recently i discovered doing otc that its possible to buy dirty bitcoins from someone and then when you try to sell it on an exchange the account gets frozen  
does anyone know how to know if a btc is clean this ?

kind regards

[drwhobox]

recently i discovered doing otc that its possible to buy dirty bitcoins from someone and then when you try to sell it on an exchange the account gets frozen  
does anyone know how to know if a btc is clean this ?

kind regards

You can do AML check. But to be honest in Bitcoin ecosystem there are no coins as dirty. It's the government who wants to decide what they want. It's better to avoid centralized exchanges.

How can you decide the 1 dollar bill in your hand is dirty or clean?

[_act_]

Just make sure you are doing something legit which is what that is important. There are many blacklisted and tainted coins is what the reality is. Some tainted coins even could go to exchanges.

There are some sites that have the listed of blacklisted coins but most traders is not what they look at or bothered about. Most bitcoin traders do not even know how to check for it. Just make sure you have proof of source of funds.

[examplens]

Just make sure you are doing something legit which is what that is important. There are many blacklisted and tainted coins is what the reality is. Some tainted coins even could go to exchanges.

There are some sites that have the listed of blacklisted coins but most traders is not what they look at or bothered about. Most bitcoin traders do not even know how to check for it. Just make sure you have proof of source of funds.

The advice is OK, but regardless, if there is clear evidence of the origin of the money, the exchanger can go further and look for a deeper origin from the previous owner.
The best advice for the OP is to check their conditions and the way they do AML analysis before using any exchanges, as well as some experiences of previous users.

[EcuaMobi]

How can you decide the 1 dollar bill in your hand is dirty or clean?

It is dirty if its serial number was marked as stolen or related to other crime. If you get it from the criminal then it makes sense it's taken away from you (besides other consequences). If you get it several months/"hands" afterwards then you're obviously innocent.
Something similar should apply for bitcoin.

[logfiles]

This bank like platforms (Centralized exchanges) got you thinking that there are now dirty Bitcoins and clean bitcoins? We really are in the sad times now!

Anyway, here is a thing. If you don't want your coins to be labeled as "dirty" or frozen for whatever reason. Still to decentralized and no KYC platforms. If you want to have that false sense of transacting in only "clean" coins at the expense of your privacy and anonymity. Stick to only crypto banks (centralized exchanges)

[hugeblack]

It is better to avoid depositing your money to services that classify bitcoin based on blacklisted/dirty.

As an answer to your question, you should keep the source of the coins you bought. For example, if you bought them from coinbase, keep the sales receipt, etc. Otherwise, using mixers that give a low AML score may save you a lot of headaches.

[bias]

recently i discovered doing otc that its possible to buy dirty bitcoins from someone and then when you try to sell it on an exchange the account gets frozen  
does anyone know how to know if a btc is clean this ?

From what I understand, you are talking about the OTC (Over The Counter) acquiring method of BTC/ coins. Indeed, if the OTC trader/ seller is an unknown individual, you can be in a middle of a shitstorm when you will want to liquidate them through a CEX exchanger. However, aren't the coins themselves "dirty" but the wallets (addresses) that came from and the suspicious activities (if any) that were involved. Chainalysis, CipherTrace, and Crystal Blockchain are some of the most common platforms/ services for tracking the road of the BTC.

[bitbollo]

For what I have seen during these years: only coins directly received from a scam wallet are frozen. (I am talking about bitcoin).
Meanwhile in some cases some coins/stable currencies could decide to frozen also after some passages - in their terms and conditions is clearly listed.
With dex and any similar platforms you can't have such issues.

You can do AML check.
...

What did you mean? How an user can complete an AML check?

[dkbit98]

recently i discovered doing otc that its possible to buy dirty bitcoins from someone and then when you try to sell it on an exchange the account gets frozen 
does anyone know how to know if a btc is clean this ?

Don't use centralized exchanges and switch to decentralized trading alternatives like Bisq or Robosats, all bitcoins are equal there.
I know there are somn bots and services that can give you some coin rating, but there is no guarantee this would apply to all centralized exchanges, they can freeze your coins and account at any time and for any reason.

[LoyceV]

How can you decide the 1 dollar bill in your hand is dirty or clean?

That's easy: it's most likely dirty!

[Macro Exchange]

recently i discovered doing otc that its possible to buy dirty bitcoins from someone and then when you try to sell it on an exchange the account gets frozen  
does anyone know how to know if a btc is clean this ?

kind regards

Yeah, that’s a real risk in OTC. If you buy BTC that’s been through shady stuff (e.g. hacks, darknet, etc.), some exchanges can flag it and freeze your account.

Best way to stay safe? Use tools like AMLBot or Chainalysis-style checkers to scan wallet addresses before you buy. Not perfect, but way better than getting stuck with "dirty coins."

[immangrace]

With the amount of BTC that passed through silk road and the likes, I think only newly mined coins can be called clean.
I remember people paying a premium for such newly mined coins.

[apogio]

With the amount of BTC that passed through silk road and the likes, I think only newly mined coins can be called clean.
I remember people paying a premium for such newly mined coins.

Wow, how does it feel coming back to the forum after 9 years?
There is no such thing as dirty coins, it's all a made up story that can possibly target the most vulnerable ones, who fear that governments will hunt them down because they have a wallet with some coins in it.
There is no way to tell if a coin is "dirty", because to define dirty you must first censor some addresses. But who is responsible for censoring addresses since Bitcoin isn't authorized by any individual or entity?!
It's all a game of power. They just invent things to try and control bitcoin because they can't control it otherwise.

[virasog]

There are some sites that have the listed of blacklisted coins but most traders is not what they look at or bothered about. Most bitcoin traders do not even know how to check for it. Just make sure you have proof of source of funds.

Having a proof of funds source is a separate thing, even you can have a legit proof of source but the sending party may still have sent you the dirty bitcoins  

I don't think there is anything like dirty bitcoin. Yes, sometimes if you get funds from some sources such as illegal mixers and those addresses are being tracked (hackers etc) and if you deposit those (tracked) bitcoins to exchanges, they may freeze your funds. Also i know sometimes if you deposit the funds from gambling site to some particular exchange they have freeze your accounts too. However, getting bitcoin from anywhere and keeping it in your decentralized wallet puts you in no harm.

[bias]

However, getting bitcoin from anywhere and keeping it in your decentralized wallet puts you in no harm.

However, the problem arises when you need to cash them out. Besides DEX's , which all of them need more time than CEX's for cashing out and different limits, where would you do it if your wallet had some "dirty" coins? Having them in a wallet doesn't hurt, but when it's time to get them out in a fiat, then things are getting tougher.

[Trêvoid]

Many of these tools are available as online platforms or even Telegram bots (e.g., @cryptoaml_bot, @AML_checking_getblocknet_bot), and they can check wallet addresses or specific transactions for a small fee

[apogio]

However, the problem arises when you need to cash them out. Besides DEX's , which all of them need more time than CEX's for cashing out and different limits, where would you do it if your wallet had some "dirty" coins? Having them in a wallet doesn't hurt, but when it's time to get them out in a fiat, then things are getting tougher.

Once again, I don't like the fact that too many people believe the "tainted coins" narrative.

But since some DEXs can lock your coins and get you in trouble until you comply with their AML policies, it looks like the problem is much bigger. People are afraid of tainted coins and companies follow stupid policies to comply with stupid rules.

Therefore, I must answer based on these facts.

There are various ways to do it:

1. BISQ, where you can exchange BTC for multiple FIAT payment methods.
2. P2P, although there is a big security risk and I don't suggest face-to-face trading. You can do digital P2P though. You can even use this forum for this purpose.
3. Use services that sell various giftcards and use them to pay for goods in your local region. A good service, so far, is Bitrefill. Essentially this is encouraged because it facilitates the "living on bitcoin" idea.

[bias]

Once again, I don't like the fact that too many people believe the "tainted coins" narrative.

But since some DEXs can lock your coins and get you in trouble until you comply with their AML policies, it looks like the problem is much bigger. People are afraid of tainted coins and companies follow stupid policies to comply with stupid rules.

I don't disagree with you, it's indeed stupid, and we know why they do it. But it's a fact that they do it and force you to follow it.

1. BISQ, where you can exchange BTC for multiple FIAT payment methods.
2. P2P, although there is a big security risk and I don't suggest face-to-face trading. You can do digital P2P though. You can even use this forum for this purpose.
3. Use services that sell various giftcards and use them to pay for goods in your local region. A good service, so far, is Bitrefill. Essentially this is encouraged because it facilitates the "living on bitcoin" idea.

I didn't say that you can't find alternatives, but none of them are fast or easy-going. Since people believe that they can be at risk, all aspects and options are affected. I mean that people who use Bisq or P2P can also be afraid that the coins that they will get are "dirty". It isn't as easy as it sounds.

[apogio]

I didn't say that you can't find alternatives

Oops, sorry, I interpreted this as a question, but perhaps it was rhetorical:

Besides DEX's , which all of them need more time than CEX's for cashing out and different limits, where would you do it if your wallet had some "dirty" coins?

I mean that people who use Bisq or P2P can also be afraid that the coins that they will get are "dirty". It isn't as easy as it sounds.

Yes, but it doesn't really matter because nobody can anything about it. The self-custody aspect reigns when you use Bisq. The problems arise when you use any service that takes full control of your coins.