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Author Topic: migrating wallets and taint analisys  (Read 361 times)
Getur (OP)
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January 27, 2016, 02:42:49 PM
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I'm asking this because I'm not sure if I'm getting some Bitcoin fundamentals right. please feel free to correct me on any misconception I could have.

suppose you have a wallet 'A', with a lot of addresses A1, A2, ..., An accumulated thru the years. now you want to migrate all your funds to a different, brand new, hierarchical deterministic (HD) wallet 'B', with unused addresses B1, B2, ..., Bn. the easiest way is to send the total of funds of A to B1, in a single transaction. however, that enables a taint analysis of B1 linking together the origin of funds of all the A addresses. if, for example, A1 is associated to web wallet with a KYC policy (e.g. Coinbase.com), then someone could de-anonymize the rest of An addresses (or at least raise suspicions of the associations of the B1 address holder).

so, the way I see to transfer all funds from A to B without retroactively tainting all the A addresses is sending every unspent An funds to Bn in n transactions. that's it: send all funds from A1 to B1, A2 to B2, an so on.

so my question is this: there is another way to do this? or at least an automated GUI-level process (I suspect that with bitcoind, a 20-line Python could do that, however I can't Python). exporting/importing the private keys is not an option, because B is a HD wallet.

I suppose I'm not the first wanting to migrate wallets without announcing/implying my identity all over the blockchain.
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January 27, 2016, 03:15:05 PM
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Sending each UTXO individually will get expensive fee wise.

Depending on the level of anonymity you want there are various other techniques that might be easier.

Depositing all the coins in an exchange and withdrawing at a latter date will break the taint chain, but associate them all with the exchange and it's KYC.

You can also use shapeshift.io to move them into an alt, and then back, this removes the KYC, but you never know what you'll get taint wise.
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