Dirty bitcoin risk?

[Natalim]

just posted from the source at the bottom  that even if you’re not involved in crime, you could still get hit if the BTC you hold was once linked to scams, hacks, or mixers. Regulators and exchanges are now tracking harder, coins can get flagged or even frozen.

BTC is supposed to be free and borderless, but with this kind of tracing it feels like they decide which coins are “clean” and which are not.
So, using unregulated exchanges just adds to the risk since they don’t screen coins properly, so you might end up holding tainted btc without even knowing.

so what do you think, just more fud to push people into regulated exchanges, or this is a real problem we need to worry about?


https://www.reuters.com/legal/transactional/keep-your-assets-clean-risks-owning-dirty-crypto--pracin-2025-09-11/

Potential losses and liability arising from dirty digital assets
Multiple government agencies, including OFAC (Office of Foreign Assets Control) and FinCEN (Financial Crimes Enforcement Network), are tasked with detecting or investigating crimes involving digital assets (including financial fraud, money laundering, confidence schemes, ransomware attacks, and even terrorism). Recent legislation has provided these agencies greater tools to conduct these investigations.

[ESG]

this is a real problem we need to worry about.

[bitbollo]

If someone is asking "did you had a problem if send btc from xxxxxx . Its ok I will pay on top ... xx% more" well... this is clearly strange and these issues are not uncommon.
Also receiving funds from "opinable" business or business man could become a problem.
But I would see these issues as literally the last resort.
If you are making clear and transparent deal, like in public forum and so on (of course without trading illegal stuffs) I don't see any real risk for "dirty" funds.
Just a portion of funds is used for illegal trades... This is more a legend I think, or probably a real rare issue for "average people" that receive just small funds...

[Bastketsrus]

If someone is asking "did you had a problem if send btc from xxxxxx . Its ok I will pay on top ... xx% more" well... this is clearly strange and these issues are not uncommon.
Also receiving funds from "opinable" business or business man could become a problem.
But I would see these issues as literally the last resort.
If you are making clear and transparent deal, like in public forum and so on (of course without trading illegal stuffs) I don't see any real risk for "dirty" funds.
Just a portion of funds is used for illegal trades... This is more a legend I think, or probably a real rare issue for "average people" that receive just small funds...

Yeah, if someone is offering extra just to move BTC around, that’s already a red flag. For most normal trades done openly and transparently, the risk of touching “dirty” coins is minimal. It’s usually only an issue when dealing with shady sources or unusually large amounts.

If someone is asking "did you had a problem if send btc from xxxxxx . Its ok I will pay on top ... xx% more" well... this is clearly strange and these issues are not uncommon.
Also receiving funds from "opinable" business or business man could become a problem.
But I would see these issues as literally the last resort.
If you are making clear and transparent deal, like in public forum and so on (of course without trading illegal stuffs) I don't see any real risk for "dirty" funds.
Just a portion of funds is used for illegal trades... This is more a legend I think, or probably a real rare issue for "average people" that receive just small funds...

Yeah, exactly—most of those “I’ll pay extra if you move BTC for me” cases are shady from the start. For regular, transparent trades, the odds of ending up with tainted coins are pretty low. It’s mostly a concern if you’re dealing with questionable sources or unusually big transfers.

[Rustam Meraj]

That is excellent question and answer is that it is both real problem and also form of FUD. Problem is real because history of every Bitcoin transaction is public and traceable so if you get Bitcoin that was once used in crime regulators and exchanges can flag or even freeze your funds even if you are innocent. However this is also form of FUD because it challenges Bitcoin original promise of being free currency and gives regulated companies reason to make people use their centralized exchanges which gives those companies more control and goes against Bitcoin main goal.

[Cookdata]

just posted from the source at the bottom  that even if you’re not involved in crime, you could still get hit if the BTC you hold was once linked to scams, hacks, or mixers. Regulators and exchanges are now tracking harder, coins can get flagged or even frozen.

BTC is supposed to be free and borderless, but with this kind of tracing it feels like they decide which coins are “clean” and which are not.
So, using unregulated exchanges just adds to the risk since they don’t screen coins properly, so you might end up holding tainted btc without even knowing.

so what do you think, just more fud to push people into regulated exchanges, or this is a real problem we need to worry about?

At Bitcoin protocol level, there is nothing as dirty Bitcoin, a Bitcoin in one wallet isn't superior to another, they are the same, that's what decentralization is about, if you can provide a valid signature to any public key, the network recognized you as the real owner of the Bitcoin in an address. However, law doesn't work in that manner, when something is stolen, law enforcement has to step in and that's why there onchain surveillance looking out for some crime scene, though the disadvantage of it is they do more than what crime study is about, they sell information and work with the government and that's brings us back to centralization Bitcoin is against.

Mosf exchanges, the centralized ones are business oriented and not about what consensus is about, if there is a reported stolen Bitcoin, they are seized immediately pending investigation or proof of ownership. I don't think you are likely going to buy a dirty Bitcoin on any centralized exchanges. Even in the decentralized exchanges, you are likely not to buy them if you know what's happening in the market. You just have to avoid anyone you see there is laundering of dirty coins at the exchange.

This is not the first time this FUD is flying around, unless they are cooking another trend 

[Sticky Bomb]

BTC is supposed to be free and borderless, but with this kind of tracing it feels like they decide which coins are “clean” and which are not.
So, using unregulated exchanges just adds to the risk since they don’t screen coins properly, so you might end up holding tainted btc without even knowing.

so what do you think, just more fud to push people into regulated exchanges, or this is a real problem we need to worry about?

Most times I see this as war on decentralization and privacy.  These"duty coins" theorem tries to challenge Bitcoin core promise of fungibility which charity states that 1BTC = 1BTC irrespective of it's history.

Most people using DEX might be victims as you can swap coins not knowing it's tainted and when it arrives on the CEX it gets blocked and the account frozen. This would only create fear in people and make them tilt towards the use of licensed exchanges for their activities thereby encouraging centralization the more.

I think using conjoin services can be of help in this case as it would alter the direct history of tainting to a large extent, maybe you can send some coins to a new address with the service to spend them without trace of being tainted unless they decide to freeze coins that used Coinjoin services too.

[_act_]

Some people that wants privacy will not be worried about this at all, but many people today are not going for privacy but they know more about the centralized exchanges and centralized wallets instead. This has not stopped some people from using mixers and looking for only privacy way of buying, selling and using bitcoin. Do not let such news disturbed you if you like privacy. If you receive coins from unknown source, make sure you send it to many addresses and let it wait for days before sending it to custodial exchanges but there are decentralized exchanges that are alternatives and better.

[Aanuoluwatofunmi]

just posted from the source at the bottom  that even if you’re not involved in crime, you could still get hit if the BTC you hold was once linked to scams, hacks, or mixers. Regulators and exchanges are now tracking harder, coins can get flagged or even frozen.

In this regard, you're referring to tainted bitcoin and once you're not involved in any illegal bitcoin acquisition or trade, you are free from these, secondly, if you don't make use of a centralized exchange, which can lead to your account being frozen due to the government policies, you're also free, lastly, don't engaged in any form of illegal acquisition of bitcoin such as hack, scam and the rest, then you're also free.

Those that these regulators often targeted are the users of centralized exchanges, not your keys not your coins, i can see the way some exchange users are changing their addresses recently for same or related reasons, we don't have to learn form the hard way, even if we are innocent about all these, we cant override on government policies in regulating on these crypto platforms.

[BABY SHOES]

Now there are many tools to detect where these coins come from, so regulated exchanges will find it easier to detect them... but who knows, this may just tighten government regulations.

What about coins from mixers? Some exchanges still don't accept coins from this source due to concerns about money laundering... while we want privacy using mixers, we're still considered wrong by the government.

[hd49728]

just posted from the source at the bottom  that even if you’re not involved in crime, you could still get hit if the BTC you hold was once linked to scams, hacks, or mixers. Regulators and exchanges are now tracking harder, coins can get flagged or even frozen.

If you don't receive coins from mixers, tumblers, it's unlikely that you will have tainted coins.
If you don't engage with dirty sources, you can provide proof of coins like how you received those coins, from signature campaign payments for example, and you will be well.

Like users with coins received from mixers (Sinbad) and got flagged by Binance but Binance asked them providing details and perhaps withdrawals too. After that, Binance can close the service with those users to avoid troubles for their exchange.

Bitcoin Q&A: Blacklist, Taint, and Wallet Fingerprinting.
Be careful using Binance & Centralized Exchange
Sanctioned Services and the service traceability to this forum, Any danger?

[pancelot]

just posted from the source at the bottom  that even if you’re not involved in crime, you could still get hit if the BTC you hold was once linked to scams, hacks, or mixers. Regulators and exchanges are now tracking harder, coins can get flagged or even frozen.

BTC is supposed to be free and borderless, but with this kind of tracing it feels like they decide which coins are “clean” and which are not.
So, using unregulated exchanges just adds to the risk since they don’t screen coins properly, so you might end up holding tainted btc without even knowing.

so what do you think, just more fud to push people into regulated exchanges, or this is a real problem we need to worry about?


https://www.reuters.com/legal/transactional/keep-your-assets-clean-risks-owning-dirty-crypto--pracin-2025-09-11/

Potential losses and liability arising from dirty digital assets
Multiple government agencies, including OFAC (Office of Foreign Assets Control) and FinCEN (Financial Crimes Enforcement Network), are tasked with detecting or investigating crimes involving digital assets (including financial fraud, money laundering, confidence schemes, ransomware attacks, and even terrorism). Recent legislation has provided these agencies greater tools to conduct these investigations.

Dirty bitcoin" is a meme fabricated by the old system. There are no clean or dirty coins on the blockchain — all satoshis are equal. Exchanges and regulators spread this meme to keep users dependent on their fiat gateways.

However, the very character of Bitcoin is the opposite: neutral, permissionless, and borderless money. They can label all they want, but they cannot change that 1 BTC = 1 BTC. If anything, fear-mongering about "dirty coins" speaks to Bitcoin's strength — the protocol itself is impenetrable, and that is exactly why the world needs it.

[ESG]

for example, they robbed the bank. The thief went there and bought a snack and a refigerante with the money from the robbery. But, no one knows that he is the thief or even the seller who received the money. (?) Will these banknotes be withdrawn from circulation? It may be so, because they have a number and the bank knows the sequence of numbers of the notes it had, but it doesn't matter because this did not always happen. but if so, these notes will be seized and the one who received it will be left without the money? every day they are printing more notes.... and of robbery   fruit notes are not withdrawn from circulation.... And what fault does the seller have if he is only selling food and receives a bill that was the result of robbery?,... These seized bitcoins are auctioned and return to circulate as good and clean coins. It means then that Bitcoin has become centralized and the one who is dictating the rules is now a central bank.  (!?)

[Ruttoshi]

just posted from the source at the bottom  that even if you’re not involved in crime, you could still get hit if the BTC you hold was once linked to scams, hacks, or mixers. Regulators and exchanges are now tracking harder, coins can get flagged or even frozen.

Don't keep your coins in an exchange and don't waste time to transfer your funds from an exchange to your noncustodial wallet after the purchase of your bitcoin from p2p trader if you are the type that buy bitcoin regularly. If you receive any funds into your wallet that you don't know the sender, freeze the coins and transfer all your funds to a different wallet which you created for that purpose.

Government or exchange cannot freeze your coins when they're in your noncustodial wallet. Not your keys.. Not your coins.

[Cryptohygenic]

BTC is supposed to be free and borderless, but with this kind of tracing it feels like they decide which coins are “clean” and which are not.
So, using unregulated exchanges just adds to the risk since they don’t screen coins properly, so you might end up holding tainted btc without even knowing.

so what do you think, just more fud to push people into regulated exchanges, or this is a real problem we need to worry about?

It is as simple as a clear conscience fears no accusations. The choice is always yours to decide if you want to link your self custodial Wallet to the regulatory platforms or not. Perhaps if you must enjoy the decentralized financial system, then you can only use the non custodial networks that is not on the watch of regulations to do your payments and must not associate your wallets address with any of the regulatory networks such as the exchange and converting your bitcoin to the fiats.
Don't be surprised that the authorities will one day freeze users accounts for reasons that does not care about if you needed the funds at that right time. Of course it happens in the bank and will not be a big deal for them to show similar characters in the exchange that they power.

[Free Market Capitalist]

this is a real problem we need to worry about.

I think that today we can be less concerned than we were with the previous US administration. More than half of the cabinet are bitcoiners, and one would hope that they will end up passing some measure that dismantles this nonsense. It's one thing to steal someone's bitcoins, transfer them all to one address, and get caught, but when they've been moved several times, and your bitcoins are supposed to be 30% dirty bitcoin, that's bullshit.

For my part, I have used bitcoin from casinos and mixers and have never had any problems. They weren't huge amounts, though.

[adultcrypto]

I strongly believe that this concept of clean and dirty bitcoin is a plot to push for regulation and nothing more. The reason is that bitcoin from any privacy related platform is usually flagged as dirty just to discourage people from using them. If they succeed in segregating bitcoin, then any coin from non KYC platforms will be flagged as dirty and probably seized.

[Jawhead999]

Separate between the coins belong/related to CEX and the coins you received from unknown sources/you not want to link to CEX. As long as you not mix that, you will be fine.

If you are making clear and transparent deal, like in public forum and so on (of course without trading illegal stuffs) I don't see any real risk for "dirty" funds.

Will you ask the address from the sender before he sent the coins?

Well even though the deal is transparent and you know which user sent the coins, but in some CEX they ask the real name, location etc of the sender, so having to know only the Bitcointalk/social medias username aren't enough.

[SilverCryptoBullet]

I think that today we can be less concerned than we were with the previous US administration. More than half of the cabinet are bitcoiners, and one would hope that they will end up passing some measure that dismantles this nonsense. It's one thing to steal someone's bitcoins, transfer them all to one address, and get caught, but when they've been moved several times, and your bitcoins are supposed to be 30% dirty bitcoin, that's bullshit.

For my part, I have used bitcoin from casinos and mixers and have never had any problems. They weren't huge amounts, though.

They can be pro-Bitcoin people and support Bitcoin more strongly than people in Biden Presidency and administration, it's good and is undeniable. There is another thing for consideration, Anti Money Laundering that is bigger than Bitcoin blockchain and cryptocurrency industry.

The current regulation can be more friendly but it has to obey general regulations on Anti Money Laundering so Bitcoin blockchain is not an exception. OP has a valid concern as centralized exchanges and centralized online platforms have to protect themselves by following government regulations. Therefore they should never let money laundering exploitation on their platforms.

Events made you scare about custodial wallets, centralized exchanges.

[Free Market Capitalist]

I think that today we can be less concerned than we were with the previous US administration. More than half of the cabinet are bitcoiners, and one would hope that they will end up passing some measure that dismantles this nonsense. It's one thing to steal someone's bitcoins, transfer them all to one address, and get caught, but when they've been moved several times, and your bitcoins are supposed to be 30% dirty bitcoin, that's bullshit.

For my part, I have used bitcoin from casinos and mixers and have never had any problems. They weren't huge amounts, though.

They can be pro-Bitcoin people and support Bitcoin more strongly than people in Biden Presidency and administration, it's good and is undeniable. There is another thing for consideration, Anti Money Laundering that is bigger than Bitcoin blockchain and cryptocurrency industry.

The current regulation can be more friendly but it has to obey general regulations on Anti Money Laundering so Bitcoin blockchain is not an exception.

But do you understand how that works? The AML is not a higher authority that states can do nothing about. The AML is made up of regulatory bodies from various countries, and the US can use its power to exclude that nonsense about dirty bitcoins from AML regulations in the US. In addition, taking such a measure would influence other countries, as has happened with the ban on CBDCs.