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

[apogio]

While sending a small amount to their new wallet, they consolidate all inputs on that address and send the full amount back to the original wallet. I can't think of any valid reason for this.

I wasn't involved with bitcoin back then, but I suppose this is the default behaviour when you consolidate funds.
Now, I believe the question is "why did they consolidate instead of spending 1 BTC from one of the UTXOs", correct?
I believe any decent software would choose one UTXO to spend from, while it looks like they intentionally selected all UTXOs for consolidation.

[NotATether]

Don't worry. They will be used to protect our children and the elderly, but also to guarantee our basic human rights! Those are the coins that got confiscated when eXch got taken down, right? Luckily, various agencies have control over them and they are now "clean coins." They can stockpile them or auction them off. It's all very legit. But if you still hold eXch-connected bitcoin, know that they are "dirty." No reason to be sad about that. You too can have your bitcoin confiscated by a CEX and witness how they turn clean with just a few clicks. What a time to be alive.  

"Clean coins" auctioned off like this go straight back into the mixer industry.

If the government thinks that they are doing a great job by raising money from the proceeds of taken-down privacy services then they are horribly wrong.

[Pmalek]

"Clean coins" auctioned off like this go straight back into the mixer industry.

Excellent. Those are just new opportunities for coin confiscation in the future. 

If the government thinks that they are doing a great job by raising money from the proceeds of taken-down privacy services then they are horribly wrong.

Governments being wrong and ineffective are a baked-in feature. The way they will look to fix that is with new laws and restrictions to protect the population and by requesting more money from tax-payers to prevent such incidents in the future, and installing better systems to monitor and suppress. Rinse and repeat.

[dkbit98]

It is a shame no comparable service has emerged since.

Similar exchange launched after eXch shutdown, but so far they didn't get enough volume and trust from community.

Does anyone know if eXch coins are still owned by them, or some government confiscated them partially or totally?
I can't remember what happened exactly.

[Ambatman]

eXch funds (bc1qcatv4gxq24z8hwt67sftjlnlm6dxnk04saz5zw) have already been moved

Funds were moved to bc1qep8g692kr7hxf3a4sv5fuqmlqy00qtggshpuj7, but in a peculiar way:
First 0.001 BTC sending the change back, then 401.34671758 BTC (which was forwarded again).
Next, it received 0.001 BTC sending the change back, then 0.83559990 BTC (which was forwarded again).
Then it received 0.001 BTC sending the change back, followed by 8.32394521 BTC (which was forwarded again).

Does that mean these UTXO have automatically become 'clean' coins?
How are they going to clean it?
By declaring it clean now?

I won't be surprised when they start calling coins outside exchanges unclean
And criteria of cleaning them would be KYC and them owning it. So much hypocrisy.

[joker_josue]

It is a shame no comparable service has emerged since.

Similar exchange launched after eXch shutdown, but so far they didn't get enough volume and trust from community.

Does anyone know if eXch coins are still owned by them, or some government confiscated them partially or totally?
I can't remember what happened exactly.

It's hard to know, as we don't even know all the addresses used by eXch. But from what we have recorded, one of the last major movements made from eXch addresses was to this one:
https://mempool.space/pt/address/bc1qcatv4gxq24z8hwt67sftjlnlm6dxnk04saz5zw

Now, who this is, and where the BTC received went, is unknown...

[LoyceV]

Does anyone know if eXch coins are still owned by them, or some government confiscated them partially or totally?
I can't remember what happened exactly.

See the links in this post.

How are they going to clean it?
By declaring it clean now?

Chain analysis companies don't bite the hand that feeds them

[Bitcoins101]

eXch funds (bc1qcatv4gxq24z8hwt67sftjlnlm6dxnk04saz5zw) have already been moved

Funds were moved to bc1qep8g692kr7hxf3a4sv5fuqmlqy00qtggshpuj7, but in a peculiar way:
First 0.001 BTC sending the change back, then 401.34671758 BTC (which was forwarded again).
Next, it received 0.001 BTC sending the change back, then 0.83559990 BTC (which was forwarded again).
Then it received 0.001 BTC sending the change back, followed by 8.32394521 BTC (which was forwarded again).

Does that mean these UTXO have automatically become 'clean' coins?
How are they going to clean it?
By declaring it clean now?

I won't be surprised when they start calling coins outside exchanges unclean
And criteria of cleaning them would be KYC and them owning it. So much hypocrisy.

It's happening. Coins from self-custody are basically treated by exchanges like deposits of cash are treated by banks. If you actually use bitcoin as intended, as a currency, then you are bound to have tainted coins, and it's inevitable that you will have issues with exchanges.

The lack of fungibility is a real problem.

[LoyceV]

If you actually use bitcoin as intended, as a currency, then you are bound to have tainted coins, and it's inevitable that you will have issues with exchanges.
The lack of fungibility is a real problem.

Fungibility is a state of mind
But if Bitcoin would be more like Monero, I'd expect exchanges to ask much more questions than they do now. Or they'll just ban them entirely, like exchanges in EU did with Monero.

[bitmover]

If you actually use bitcoin as intended, as a currency, then you are bound to have tainted coins, and it's inevitable that you will have issues with exchanges.
The lack of fungibility is a real problem.

Fungibility is a state of mind
But if Bitcoin would be more like Monero, I'd expect exchanges to ask much more questions than they do now. Or they'll just ban them entirely, like exchanges in EU did with Monero.

There are still many good alternatives, where you can simply exchange any btc for stablecoins without kyc/aml. For now, i like to use Hyperliquid but there are many other good ones.

And stablecoins are 100% safe to send to any exchange,  if you ever need.

For those who like the technology and understand how bitcoin and cryptos work, it is still very easy to spend any coin.

[Pmalek]

There are still many good alternatives, where you can simply exchange any btc for stablecoins without kyc/aml. For now, i like to use Hyperliquid but there are many other good ones.

Hyperliquid isn't non-custodial, though. They like to pretend they are. They carry out checks on the coins that get deposited on their exchange. I have read several stories of users who have had their bitcoin frozen on Hyperliquid and simply locked out of their accounts. I considered using them in the past but not anymore. Do an internet search on "can hyperliquid freeze your funds" or something similar and you will see what I am talking about.

[bitmover]

There are still many good alternatives, where you can simply exchange any btc for stablecoins without kyc/aml. For now, i like to use Hyperliquid but there are many other good ones.

Hyperliquid isn't non-custodial, though. They like to pretend they are. They carry out checks on the coins that get deposited on their exchange. I have read several stories of users who have had their bitcoin frozen on Hyperliquid and simply locked out of their accounts. I considered using them in the past but not anymore. Do an internet search on "can hyperliquid freeze your funds" or something similar and you will see what I am talking about.

Yeah, i know they are custodial service.

Just like exch or any other service.

Every time you send bitcoin , those coins can be frozen.

In my situation , they accepted many coins that were refused by other services.

I think people from bitcointalk could benefit a lot from hyperliquid. It is way better than 99% of the exchanges that advertise here. I think even 100% lol

[Pmalek]

Yeah, i know they are custodial service.

Just like exch or any other service.

Every time you send bitcoin , those coins can be frozen.

In my situation , they accepted many coins that were refused by other services.

I think people from bitcointalk could benefit a lot from hyperliquid. It is way better than 99% of the exchanges that advertise here. I think even 100% lol

I wouldn't agree with that. If they freeze coins, and there are different reports that they do, I wouldn't call them good or better than some other services that also freeze coins. They are equally bad and dangerous. In fact, maybe even worse if people mention them as quality alternatives. I am glad you didn't have issues with your deposits, but that can all change with the next one.

Hyperliquid can't be compared to eXch. Both were custodial, that's true. But eXch didn't confiscate anything and didn't play ball with governments and regulators and their ridiculous notion of taint and dirty crypto.

[bitmover]

I wouldn't agree with that. If they freeze coins, and there are different reports that they do, I wouldn't call them good or better than some other services that also freeze coins. They are equally bad and dangerous. In fact, maybe even worse if people mention them as quality alternatives. I am glad you didn't have issues with your deposits, but that can all change with the next one.

Hyperliquid can't be compared to eXch. Both were custodial, that's true. But eXch didn't confiscate anything and didn't play ball with governments and regulators and their ridiculous notion of taint and dirty crypto.

There is no way you can convert or exchange your bitcoin without losing the custody of your coins. Even BISQ has some kind of trust involved.

I think the problem with such an idealist vision is that the way you put it there is no alternative. You just condemn everything and everyone, and you put the good and the bad in the same basket. Ofc hyperlliquid is not equally dangerous as binance or changelly, for example. You can send coins with high AML and no questions will be asked, and no funds will be frozen.

I did a little research, and the only frozen funds related to hyperliquid I found were related to some shitcoin exploit/hack. Maybe you can find something about frozen btc in different situations (which I didn't), but it is highly unlikely that they will freeze funds using policies similar to Binance, Changelly, or other common swap services.

They will probably have to change their policies in the future, as it was already suggested by LoyceV in past, that services like that get too much attention and get seized or they start playing by "the rules". But that is not the case yet.

[Pmalek]

There is no way you can convert or exchange your bitcoin without losing the custody of your coins. Even BISQ has some kind of trust involved.

I think the problem with such an idealist vision is that the way you put it there is no alternative. You just condemn everything and everyone, and you put the good and the bad in the same basket.

The issue isn't about giving up custody of your coins and using a custodial service. I have done it many times in the past with exchanges I trusted. Look at the name of the thread we are writing in. What I do have a problem with is giving custody of my bitcoin to Russian Roulette-type of exchanges that may or may not confiscate and steal my coins based on arbitrary decisions they make. That I don't support. If you are ok with that gamble, fine. Be my guest.

Ofc hyperlliquid is not equally dangerous as binance or changelly, for example. You can send coins with high AML and no questions will be asked, and no funds will be frozen.

Maybe no questions will be asked and maybe the coins won't get confiscated. But maybe they also will. You can't make claims that Hyperliquid doesn't freeze funds and doesn't ask questions when they have done it in the past. Again, if that is acceptable to you, feel free to use them. I would rather look for alternatives where the question of maybe isn't hanging in the air.

[Bitcoins101]

If you actually use bitcoin as intended, as a currency, then you are bound to have tainted coins, and it's inevitable that you will have issues with exchanges.
The lack of fungibility is a real problem.

Fungibility is a state of mind
But if Bitcoin would be more like Monero, I'd expect exchanges to ask much more questions than they do now. Or they'll just ban them entirely, like exchanges in EU did with Monero.

Fungibility isn't a state of mind when you can get "scammed" by buying tainted coins.

There are still many good alternatives, where you can simply exchange any btc for stablecoins without kyc/aml. For now, i like to use Hyperliquid but there are many other good ones.

Hyperliquid isn't non-custodial, though. They like to pretend they are. They carry out checks on the coins that get deposited on their exchange. I have read several stories of users who have had their bitcoin frozen on Hyperliquid and simply locked out of their accounts. I considered using them in the past but not anymore. Do an internet search on "can hyperliquid freeze your funds" or something similar and you will see what I am talking about.

Hyperliquid just locking accounts and saying "tough luck" is a serious issue. It would be one thing to just send the funds back to the user and another thing to require further verification. But, it sounds like they just freeze funds and keep them essentially, which I would classify as a scam.

[examplens]

Ofc hyperlliquid is not equally dangerous as binance or changelly, for example. You can send coins with high AML and no questions will be asked, and no funds will be frozen.

Maybe no questions will be asked and maybe the coins won't get confiscated. But maybe they also will. You can't make claims that Hyperliquid doesn't freeze funds and doesn't ask questions when they have done it in the past. Again, if that is acceptable to you, feel free to use them. I would rather look for alternatives where the question of maybe isn't hanging in the air.

The fact is that any exchange can freeze coins by referring to AML rules. That is why it cannot be said that any exchange is safe from that aspect. Usually, the first few transactions, especially the smaller ones, always go through without problems. Only after years of operational business without a single claim for freezing funds, the service can be largely considered safe.

[NotATether]

Does that mean these UTXO have automatically become 'clean' coins?
How are they going to clean it?
By declaring it clean now?

I won't be surprised when they start calling coins outside exchanges unclean
And criteria of cleaning them would be KYC and them owning it. So much hypocrisy.

Yes.

Supposedly, the US government regularly sends money to criminal gangs all the time (via the CIA) which then becomes dirty, then once the cops seize the assets of those criminals and move it to a bank account then magically it becomes "clean".

If you want to get clean currency all the time, just work for the government. But not at an internship.

[Skjadoon]

There are still many good alternatives, where you can simply exchange any btc for stablecoins without kyc/aml. For now, i like to use Hyperliquid but there are many other good ones.

Hyperliquid isn't non-custodial, though. They like to pretend they are. They carry out checks on the coins that get deposited on their exchange. I have read several stories of users who have had their bitcoin frozen on Hyperliquid and simply locked out of their accounts. I considered using them in the past but not anymore. Do an internet search on "can hyperliquid freeze your funds" or something similar and you will see what I am talking about.

Yeah, i know they are custodial service.

Just like exch or any other service.

Every time you send bitcoin , those coins can be frozen.

In my situation , they accepted many coins that were refused by other services.

I think people from bitcointalk could benefit a lot from hyperliquid. It is way better than 99% of the exchanges that advertise here. I think even 100% lol

https://finance.yahoo.com/news/3-6m-drained-hyperliquid-defi-124149253.html

is this the one you are referring?

[bitmover]

https://finance.yahoo.com/news/3-6m-drained-hyperliquid-defi-124149253.html

is this the one you are referring?

Yeah, that is it. Have you read the article?

The article mentions no btc coins being frozen neither any kyc or aml.

Just people sending coins from hyperliquid straight to a mixer