eXch - instant exchange BTC / LN / XMR / LTC / ETH / ERC20

[fillippone]

As I said, these events will help you to understand who the good actors are and who the bad actors are. Also, this will force you to think about how little you are selling one of your own most sought-after assets: freedom.
Are you willing to trade your privacy and freedom for a bp of improvement?

[Bitcoin_Arena]

Saw this on Twitter and thought I'd share with those who might be using both exch and FixedFloat. FF is planning to start blocking transactions coming from exch starting today as mentioned in their recent article:

In connection with the position of eXch, we are forced to take the following measures. Now all funds received from the eXch service are considered criminal. In accordance with the Terms of Use of FixedFloat 6.4. in case of detection of such funds, we reserve the right to suspend the provision of services and freeze the funds received. This rule comes into force on March 3, 2025.

I see where things are headed. Exchanges that enforce KYC are going to try as a hard as possible to blacklist transactions from exchanges or services that refuse to KYC. I remember a similar thing happening when tornado cash was sanctioned. Yes, it was a mixer, but the difference this time round is that the like of Bybit and FF are acting even before Law enforcement or regulators do anything. The so-called regulation complaint exchanges now want monopoly over everything.

[estenity]

FF with all this bad press cant have a future...

[LoyceV]

I see where things are headed. Exchanges that enforce KYC are going to try as a hard as possible to blacklist transactions from exchanges or services that refuse to KYC.

This will force some people to use KYC, while others will avoid those services. Chances are you'll end up with different wallets: one for privacy, and one for KYC services that's completely unrelated to the other wallet.
The notion of Taint has been an attack on Bitcoin's fungibility for years.

[joker_josue]

I see where things are headed. Exchanges that enforce KYC are going to try as a hard as possible to blacklist transactions from exchanges or services that refuse to KYC.

This will force some people to use KYC, while others will avoid those services. Chances are you'll end up with different wallets: one for privacy, and one for KYC services that's completely unrelated to the other wallet.

This may be a solution on a personal level.
Even so, it does not guarantee that any state in these wallets, especially those intended for KYC services, have not gone through one of these services at some point in their history.

Today it is still minimally viable to make this type of blockade. But, I believe that sooner or later, it will no longer be viable. Or at least the exchanges will have to accept these "tainted" coins in some anonymous way, to "clean" them.

[LoyceV]

Today it is still minimally viable to make this type of blockade. But, I believe that sooner or later, it will no longer be viable. Or at least the exchanges will have to accept these "tainted" coins in some anonymous way, to "clean" them.

Since this is much more of a problem than it was a few years ago, I don't have high hopes for this. Fungibility only exists if people believe it exists.

[Pmalek]

As I said, these events will help you to understand who the good actors are and who the bad actors are. Also, this will force you to think about how little you are selling one of your own most sought-after assets: freedom.
Are you willing to trade your privacy and freedom for a bp of improvement?

Anyone can be caught in the middle of this "war" without having done anything bad. Here is an example: John uses eXch to swap A to B. John then sells his coins for goods and services to Bill. Bill deposits the crypto into an exchange that now considers anything in connection with eXch do be 'dirty' and 'tainted.' The exchange blocks/confiscates Bill's crypto and the person calls John a scammer, requesting the money/goods back. John is the one who sold him those coins. Bill doesn't know or care about the history that lead up to eXch becoming the bad guys. All Bill knows is that he invested money into something and now he lost it and it was taken away from him. It's ugly for both sides. 

[LoyceV]

Anyone can be caught in the middle of this "war" without having done anything bad. Here is an example: John uses eXch to swap A to B. John then sells his coins for goods and services to Bill. Bill deposits the crypto into an exchange that now considers anything in connection with eXch do be 'dirty' and 'tainted.' The exchange blocks/confiscates Bill's crypto and the person calls John a scammer, requesting the money/goods back. John is the one who sold him those coins. Bill doesn't know or care about the history that lead up to eXch becoming the bad guys. All Bill knows is that he invested money into something and now he lost it and it was taken away from him. It's ugly for both sides.

This is exactly the reason why money must be fungible:

This site explains very well what it's all about:

Coin validation proposed to offer as a service to trace coins and try to give you a rating about how the history of the coin from your point of view and to offer that as a service to businesses. I think this could be quite dangerous because it goes back to that 17th century court case where now you could receive a coin that is perfectly valid at the time that you receive it, but a few weeks later a crime is uncovered and now your coin is tainted. So if this coin validation service is advicing many of the merchants where you would want to spend your coin at, it's tainted and now the merchant would refuse to accept your coin. That's a strange experience for you; you're holding a coin that you might have to sell at a discount to get rid of it. The aggregate effect of this might create a run on the bitcoin price. So it reopens this long-set legal principle that currency or currency units are all equal.

I can't stress enough how important this is!

[Pmalek]

This is exactly the reason why money must be fungible:

True. But we have been here long enough to know that isn't the case in crypto, and the same unit of my bitcoin can be worth more/less and be treated differently compared to the same unit of your bitcoin. Cases like this are the perfect opportunity for centralized services to steal from their users under the pretext of fighting money laundering, crime, and other popular buzzwords. And they will succeed in it.

Imagine a retroactive application. You are getting a knock on your door. It's your neighbor saying, what the hell man, I trusted you. Why is my exchange account blocked and their agents are asking me who I am, where I got my bitcoin from, and what's my association with the coins you sold me two weeks ago? What have you gotten me into?

I have a vivid imagination, but these are all things that can happen.

[LoyceV]

True. But we have been here long enough to know that isn't the case in crypto, and the same unit of my bitcoin can be worth more/less and be treated differently compared to the same unit of your bitcoin.

I've been saying it for a while now: the notion of "taint" is an attack on Bitcoin. Governments can't stop Bitcoin, but they can make people stop trusting it. They want fiat money to be fungible, so people trust it. For Bitcoin, it's the opposite. And by the looks of it, they ones in favour of taint are gaining ground.

[Pmalek]

I've been saying it for a while now: the notion of "taint" is an attack on Bitcoin. Governments can't stop Bitcoin, but they can make people stop trusting it. They want fiat money to be fungible, so people trust it. For Bitcoin, it's the opposite. And by the looks of it, they ones in favour of taint are gaining ground.

It's all an abuse of power from the top of the pyramid and going down. The idea is, you are going to listen to what we tell you or else! The nation state tells it to individual regulators, and regulators spread the information to their subjects. When it reaches crypto exchanges, most will play ball because their survival is the objective and not the interest of some crypto user out there somewhere. So, when they get told, this is our new position, deal with it, 8 or 9/10 will accept it as it is with no complaints. Those who don't want to will be dragged through the mud until they understand.

[apogio]

And by the looks of it, they ones in favour of taint are gaining ground.

Does that surprise you? The "tainted" bitcoin narrative is produced by the governments for a simple reason. They can't control bitcoin, so they try to control us! They will try to control how we buy it and use it.
If they make people scared that Bitcoin can be tainted, they will all buy it using media they can control.

During my life so far, I 've heard different kinds of bullshit, but "tainted" bitcoin is by far one of the bullshitest

[NotATether]

True. But we have been here long enough to know that isn't the case in crypto, and the same unit of my bitcoin can be worth more/less and be treated differently compared to the same unit of your bitcoin.

I've been saying it for a while now: the notion of "taint" is an attack on Bitcoin. Governments can't stop Bitcoin, but they can make people stop trusting it. They want fiat money to be fungible, so people trust it. For Bitcoin, it's the opposite. And by the looks of it, they ones in favour of taint are gaining ground.

That's why it's so important to support mixers. Everyone is thinking they are a hacker's tool now, but in actuality, they are one of the few methods for keeping Bitcoin nonfungible.

[bitmover]

Saw this on Twitter and thought I'd share with those who might be using both exch and FixedFloat. FF is planning to start blocking transactions coming from exch starting today as mentioned in their recent article:

In connection with the position of eXch, we are forced to take the following measures. Now all funds received from the eXch service are considered criminal. In accordance with the Terms of Use of FixedFloat 6.4. in case of detection of such funds, we reserve the right to suspend the provision of services and freeze the funds received. This rule comes into force on March 3, 2025.

I may not have the highest opinion of eXch, but everybody can see that this is gangster activity from FixedFloat.

They said they are basically freezing the funds received and keeping the funds for themselves. Punishing the customers of exch, not the hackers from bybit.

This is crazy. I see they have and inactive ANN here in bitcointalk, and an inactive profile https://bitcointalk.org/index.php?topic=5107342.0

[LoyceV]

They said they are basically freezing the funds received and keeping the funds for themselves. Punishing the customers of exch, not the hackers from bybit.

It reminds me of this topic:

They lied. That should tell you everything you need to know:

The funds remain frozen at our addresses, and when the frozen funds are seized by the authorities, they are also sent from our addresses.

That's not true. You say the funds "remain frozen", but that can't be since you've mixed them already.
The first transaction was mixed in this transaction and that same output was used to sent to another address. The second transaction was mixed in this transaction and also sent to another address. None of the funds were frozen in your wallet, you're normally using them to pay other people.
To summarize: if those funds came from criminal activity as you claim, you've now sent it to other innocent users who now own those "tainted" Bitcoins.
It sounds very much like you only care about "taint" when it's convenient for you.

They didn't respond anymore after this post.

[Lucius]

And didn't these guys get hacked out of millions of dollars a couple months ago? They should work on fixing their own crappy service instead of attacking competitors.

The FixedFloat hack was almost comical. As far as I remember, it happened monthly. Multiple times and each time in the same way.
Otherwise, they have been known to keep funds without any strong basis, this is nothing new, even if they have publicly acknowledged such a stance.

If this is true, then it could indicate that these are fake hacks intended to cover up an inside job. Or is it just about the total inability to patch the hole through which the water passes, and every month you are surprised that you have a flood.

Anyway, I never understand why amateurs attack professionals, because in the end they only end up being even bigger amateurs.

[s1lverbox]

Fixed float has no say in any legal battle if funds will get flagged. They can suspend or freeze to perform checks but as far as the law goes they simply has no leg to stand on.
Exch is attakced becasue operator showed middle finger to this idiots.

Same manners thorchain is attacked now and every fudster calling swaps as laundering.

But lets be real here: if any service simply swaping one asset to another and do not obfuscate anything then clearly its not laundering.

It's easy to say this words but reality is much different. 

[dkbit98]

The FixedFloat hack was almost comical. As far as I remember, it happened monthly. Multiple times and each time in the same way.
Otherwise, they have been known to keep funds without any strong basis, this is nothing new, even if they have publicly acknowledged such a stance.

I don't know who can take fixedfloat exchange seriously when they got hacked several times.
If they can't keep funds safe and secure their website and assets, they can't be trusted about anything.
Same could be said for Bybit and other centralized exchanges... but things are reversed in this clown world.

This will force some people to use KYC, while others will avoid those services. Chances are you'll end up with different wallets: one for privacy, and one for KYC services that's completely unrelated to the other wallet.
The notion of Taint has been an attack on Bitcoin's fungibility for years.

I can see this issue escalating in future.
Maybe best solution would be adding some privacy layer on bitcoin or mweb addresses.

[arabspaceship123]

Fixed float don't possess acceptable reputation because they've been hacked 2 times. It's bewildering they haven't gone bust after losing $26M & $3M. There's more friendly exchange options so if they're going to impose KYC they won't have a future.

FF with all this bad press cant have a future...

[paid2]

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