Will they also whitelist their funds using mixers?

[PX-Z]

Is it possible for the mixer authorities to block the bitcoins in their wallets when they send them for mixing? And are there any examples where funds have been seized or transactions blocked?

Basically there's no so called mixer authorities. As for the idea, they will probably just said that they dont differ to centralized authorities who censored and blocking everyone they dont want if they do that.
But yes, since this is a hacking issue, it should be done like that, block those address in any kind of transaction either for swap, exchange and mix.

[dzonikg28]

Given the centralized nature of some mixers ,yes they can block transactions (if they want to) but I doubt the hacker would go through that route, or through anything where there is a risk of having the funds blocked.

As for the person or people behind this getting caught, then as mentioned above, it all depends on the mistakes they might[1] have made in the past, or are going to make.

[1] https://x.com/clay_garrett/status/2083247006139503065

But the fact alone that he used a paid account does really mean nothing at this point, does it? If someone decides to run an illegal operation at that scale, using a stolen identity or a hacked account at a blockchain service provider is the most likely scenario.

If he or they are very patient, couldn't they wait for these smaller swap exchanges popping up from to time offering BTC > XMR swaps? Those smaller swap providers would probably not have the full package of security measures in place to detect stolen coins.

[Woodie]

This will make or break the mixer business!!

If funds get withheld, then all users of this service will think twice about using mixers again.. because they have always thought illicit funds can easily be cleaned and it's business as usual, but if precedent was set and funds returned to the rightful owners, I think the narration about this service could change but highly unlikely if reputation of the business is also in the line.

[Publictalk792]

Blockchain is clear to see so those funds are already marked. It is normal procedure now, stolen coins are tracked by Chainalysis and other firms in live time and if any exchange receives them, account will be frozen.

Coins are not "whitelisted" by mixers, they simply hide the path. However, law enforcement has gotten better significantly in unmixing, as shown in 2022 when Bitfinex hack was gotten back, even after years of mixing. $3.6 billion gotten back years later.

They can be caught if they try to cash out in particular location. While a DEX without KYC is more difficult to trace, centralized exchange with identity checking is basically a trap. Most part of hackers will eventually make mistake at the exit point.

[omenswap]

Now My question here is that will they never be caught?

I think they will definitely be caught one day. Because this is not just a simple issue, but a major international incident. It is very difficult to hide such a large amount of Bitcoin and such high surveillance with such a large amount of funds forever.

Or will they just use Mixers to get their funds blacklisted to whitelisted?

If a mixer wants to ruin their reputation or get noticed by law enforcement, they will accept such a hotly debated fund . Ofc no reputable mixer would risk accepting such a high profile stolen fund.

What exactly do you think a mixer is?

[bitmover]

Will mixer take those funds?

I believe any mixer or exchange that touch those funds will get seized like CM or eXch....

I think the Real question would be:

Will these Mixers check where the funds are coming from?

There have been cases of Mixers getting seized over similar cases like this, but yet more and more cases still tend to surface so I won't be surprised if one of these big mixers get affected or maybe the hacker can decide to chose other route of cleaning the money but one thing is certain and that's the fact that any Mixer that accepts the funds will most certainly be seized by the authorities.

If the mixer do not check if the coins came from coldcard exploit known addresses,  it will probably be seized and the owner arrested.
So yeah, they will check

[OmegaStarScream]

-snip-
But the fact alone that he used a paid account does really mean nothing at this point, does it? If someone decides to run an illegal operation at that scale, using a stolen identity or a hacked account at a blockchain service provider is the most likely scenario.

That's true. It's also possible he used his own personal account, but gave fake information and paid with crypto instead of a credit card that links back to him.

I also don't see how would someone make such a mistake when he's doing all of this, but you know, this would not be the first time where someone get caught because they slipped:

- The bitfinex hackers from 2016 getting caught years later because they were actively buying gift cards[1].
- Jimmy Zhong[2] (who found an exploit in the silk road) making the mistake of transferring 800$ to a regulated exchange that had his personal info.
- Flexing[3]
etc.

[1] https://www.wsj.com/finance/currencies/bitcoin-bitfinex-hack-crypto-laundering-morgan-lichtenstein-11644953617
[2] https://www.cnbc.com/2023/10/17/crypto911.html
[3] https://www.tradingview.com/news/cointelegraph:73e86785f094b:0-how-a-teen-stole-243m-in-bitcoin-and-revealed-his-identity-on-livestream/

[m2017]

Given the centralized nature of some mixers ,yes they can block transactions (if they want to) but I doubt the hacker would go through that route, or through anything where there is a risk of having the funds blocked.

The key word is "if they want". Considering the mixer's commissions (from the nearly $90 million already stolen from bitcoin), they could also amount to a substantial sum. However, the hacker could use several different mixers, dividing bitcoins.

The cold-bloodedness with which this hacker operates (three waves of attacks have been conducted so far) suggests that they likely planned in advance a way to cover their tracks and "launder" bitcoins.

As for the person or people behind this getting caught, then as mentioned above, it all depends on the mistakes they might[1] have made in the past, or are going to make.

[1] https://x.com/clay_garrett/status/2083247006139503065

Hmm, interesting tweet. Perhaps he's already made a mistake in the past. We'll see how this story plays out. Perhaps there's still a chance for the Coldcard owners to get their bitcoins back.

In any case, the "hunt" for these bitcoins will continue for a long time, as there's too much money at stake (and Coldcard's reputation) and the resulting commotion.

[EL MOHA]

The key word is "if they want". Considering the mixer's commissions (from the nearly $90 million already stolen from bitcoin), they could also amount to a substantial sum. However, the hacker could use several different mixers, dividing bitcoins.

I am  looking at this attacker moving same way the bybit hackers  moved, the bybit hack which was more of Ethereum, that hackers used different mixers by dividing the funds some to even centralized mixers just like you have predicted now and then swapped to bitcoin, probably this attacker might be on same track.

They could even be working with some mixers that could give them a free pass who knows.

In any case, the "hunt" for these bitcoins will continue for a long time, as there's too much money at stake (and Coldcard's reputation) and the resulting commotion.

I think Coldcard seriously have to step up and be proactive because this is there reputation at stake, they should simply set a bounty for its hunt for blockchain experts to help, probably something below 10% of the what they can help to recover 

[BlackHatCoiner]

Theoretically they can get away with it, unless they have left enough digital footprints. From the moment you get the bitcoin, it is possible to make them anonymous through coinjoin and BTC<->XMR swaps.

562 BTC is not as big as some people think. They can become untraceable given enough time.

[icebar]

Is it possible for the mixer authorities to block the bitcoins in their wallets when they send them for mixing? And are there any examples where funds have been seized or transactions blocked?

I think the scammers will stop using those coins now and after a long time they will try to protect the privacy by using those funds in small parts and using them through mixers. If the mixer wants to, they can block that coins but they probably won't do that. But I believe that if the investigative agencies try to investigate it well, then at some point they can find some evidence. Scammers can go to an exchange platform at some point. But it doesn't seem like they will make such a mistake so easily.

If blockchain analysis companies research the transactions well, sometimes it is possible to find clue. After analyzing the source and transfer of those funds even after mixing, companies like Chain Analysis and TRM Labs and some others can get good results in many cases which can help in identifying those scammers. But there is no way to say that it will always be possible to do it accurately.

[AmoreJaz]

Blockchain is clear to see so those funds are already marked. It is normal procedure now, stolen coins are tracked by Chainalysis and other firms in live time and if any exchange receives them, account will be frozen.

Coins are not "whitelisted" by mixers, they simply hide the path. However, law enforcement has gotten better significantly in unmixing, as shown in 2022 when Bitfinex hack was gotten back, even after years of mixing. $3.6 billion gotten back years later.

They can be caught if they try to cash out in particular location. While a DEX without KYC is more difficult to trace, centralized exchange with identity checking is basically a trap. Most part of hackers will eventually make mistake at the exit point.

Honestly, I don't know if mixers are still doing good today or if they still have business. I believe, even if mixers are banned here in the forum, somewhere, there are still sites offering his kind of service.
Gone are the golden days of mixers. Actually, this service is helpful in some ways particularly when you are securing your privacy. But if certain entities are using this to evade some legalities in terms of financial aspect, that's when this service is is heading to protecting the fraudulent scheme of these entities. The reason why it is usually connected with money laundering scheme.

[Z-tight]

Honestly, I don't know if mixers are still doing good today or if they still have business. I believe, even if mixers are banned here in the forum, somewhere, there are still sites offering his kind of service.

Why would mixers stop operating because they are banned in bitcointalk? Of course there are mixers, you cannot just find them in this forum anymore. However, the Coldcard scammer has pulled off a hack that has attracted the attention of the entire crypto community, they would be very careful in how they launder these funds, though i am pretty sure they already had everything planned out.

I don't think they would go through mixers, and if they do and the funds are processed, LE would swarm on the mixer like bees.

[RoseAPT]

Doesn’t North Korea usually swap to eth and then use tornado cash or something? A completely decentralized mixer

They can also use some dex to swap into zec or xmr