I just wondered on what the community's consensus is on whether mixing services should go ahead with mixing stolen coins, e.g. those stolen in the recent Binance hack (estimated 18,270 bitcoins).
Argument against mixing:
- when you know coins are stolen, it would be a moral thing to do to return them to the rightful owner(s).
Arguments for mixing:
- mixers help keep bitcoins fungible (one bitcoin is worth the same as another bitcoin) and censorship-free. Anyone who uses Bitcoin should understand the risks and that transactions are irreversible.
- freezing coins would breach the trust of mixers' users. It is implied that a mixer provides service indiscriminately to anyone without judgement.
Any thoughts?
Yes, I don't know whether the people who own mixer companies would do that if they had customers sending stolen bitcoins. After all, they're just mixer companies, and anyone has the right to use them. So, holding someone's bitcoin would obviously damage their reputation. So, yes, this would definitely be a dilemma for mixer owners. On the one hand, they're simply providing a service to allow Bitcoin users to be more anonymous.
But on the other hand, their service could be used for nefarious purposes, such as sending stolen bitcoins. So, given that, I'm not sure what they'd do. It's quite complicated if we talk too much about it. Unless, for example, the mixer owner has a bold mindset and is prepared to accept all the risks. He would certainly be ready to catch the bitcoin thief when he sends the bitcoins. So, yes, it depends on who owns the mixer company.