Topic: Do exchanges freeze transfers from mixers ? (Read 369 times)

I've found ]Jambler's website saying they've got systems checks so it's harder using stolen bitcoins. Can you trust it? Is it one of the most secure mixers?

You simply can't prove anything.

With or without mixing, your coins should be pseudoanonymous and it should be pretty much impossible to trace back.

Especially if you use a good mixer, this should be a non-issue given that the whole point of a mixer is to obfuscate your tracks.

That's what I've picked up from the thread if you're mixing then the coins shouldn't be sent to exchanges because they've used suspicious transactions terms for freezing coins. If I'm going to use mixers I'm sending my coins to my wallet they'll never be sent to exchanges because I won't be taking chances.

An exchange such as Binance won't flag such a transaction maybe only in special cases if the devs or say a compromised wallet owner can prove ownership then can they take necessary steps but I have used an exchange like flixio (trade.finxflo.com/trade) which requires you to whitelist both your depositing and withdrawing addresses before moving your coins to the exchange and failure to do so could amount to freezing or forfeiting such coins.

Even using up known or reputable mixers but still im not really that confident on pushing transactions through those kind of system or method because i do feel uncomfortable because of the possible risk ahead.

Im aint doing illegal and do selcomly make use of mixers but same as you had mentioned which sending it first on fresh address then this is mostly
ive been doing so that at least i do able to recover up something if problem occurs.

So its really a matter of choice but most of the time they dont really actually make out some problems related into this one.

Every centralized exchange has dangerous terms which are "suspicious transaction". So they might detect transactions from the mixer as suspicious transactions. Although this isn't the right reason to freeze our coins, they might do it. If I have to use a mixer for any reason, I won't make a direct deposit into the centralized exchange. First I will move my funds to my fresh address and then move to the exchange. Not sure if it's safe since they could track the transactions, but in case of refund, they would do it at in same address. So that I might get back at least. But I don't think usually they will freeze funds unless the fund wasn't stolen. And most likely they won't track if you use premium and reputable mixers.

I'm sorry I didn't reply quicker I didn't expect these numbers of responses. I've read them so thanks for what you've written here's what I've decided to do. If exchanges freezes accounts you haven't got a chance proving where they came from so they'll cheat to keep them. It isn't worth taking risks by sending mixed coins to exchanges even if you've sent them to your wallet first.

I'll use Chipmixer for mixing coins to my wallet instead of taking chances with exchanges. I'll try it soon for the first time.

Well, if you buy and withdraw from a centralized exchange such as Binance or Coinbase, then that exchange would have a hard time in the future refusing to accept the coins they sent you because they were "tainted" without admitting that either they are laundering money or the entire concept of taint is completely flawed and pointless, as we all know it is. Or the other option is to not use centralized exchanges at all. I have literally never once ran in to a problem with my extensively mixed or coinjoined coins not being accepted.

Absolutely it comes from higher up than the exchanges themselves, but the exchanges do absolutely nothing to fight it, and instead opt to sell out their users with zero resistance because that is what guarantees them profits. Can you imagine where we would be right now if the US government had said "You must KYC everybody" and every major exchange had said "No, we don't want to do that", challenged them in court, moved their businesses to avoid these laws, started offering real DEX and peer to peer methods of trading (not the fake scam DEX which still requires KYC like Binance), and so on.

The exchange didn't make these rules, but they are the ones who are implementing them without a second though or putting up the slightest fight against them.

I have to admit that this reminded me of one conversation with a person who had a serious intention to invest in Bitcoin about 3 years ago, but after several months of research it was precisely this issue that emerged as crucial. One simply wondered for a reason whether it could happen that the BTC he buys would be marked as tainted in the future and that in that way he would be left without everything. The only thing I could say then (and to be absolutely sure that this would not happen) was the advice to buy BTC directly from the miners.


It may be the curse of any currency, because it is used by good and bad people, and perhaps the best argument to fight against being abused with the argument "you have tainted coins" is to stick to the proven fact that most banknotes are contaminated with countless illegal activities, and yet no one checks them when we pay with them.


Of course, we should not accept every nonsense that they try to impose (exchanges), but I think that they do not do such things because they want to, but because the law increasingly forces them to play detectives and look for anything suspicious. The problem is that they want to know everything, and when (if) they become more aggressive, users may start using DEX more.

This is another good point.

If you look back far enough, then according to centralized exchanges most bitcoin in circulation has been "tainted" in some way - be it from a casino or sportsbook, darknet market, scam, hack, DEX, mixer, coinjoin, or any of the dozens of other completely arbitrary reasons they decide a coin is tainted. If we go far enough in to the future, then every bitcoin in circulation will be tainted in such a way. If there is a coinjoin with 49 clean inputs and 1 tainted input, then all the outputs are tainted because you cannot determine where the tainted coins went. If you consolidate 100 clean BTC with 1 tainted BTC, then you now have 101 tainted BTC, since you cannot determine which coin is the tainted one.

Now, obviously exchanges cannot turn down every coin or they would have no business, so where do they draw the line? Coins coming directly from a casino are tainted. So what if I send the coins to my wallet first and then to the exchange? What if I bounce the coins between 5 different wallets first? Does the exchange look back 1 transaction? 5 transactions? 10? 100? It is all completely arbitrary and frankly stupid.

We should not be accepting these arbitrary rules and limitations which exchanges are dictating to us.

If crypto exchanges begin to rigorously analyze all transactions, they could very quickly run out of a significant portion of revenue, as only virgin mined coins can be considered 100% clean - and we can only guess how much BTC has gone through various mixers, casinos or been hacked. I remember reading before that as much as 13% of BTC wallets were tainted with BTC that once went through Silk Road, and I wouldn’t be surprised if the percentage of those that went through the mixer was much higher.

I personally wouldn’t dare send larger amounts from the mixer directly to the crypto exchange (CEX), because I don’t think it’s just a question of where BTC comes from, but also whether someone sent $100 or $10 000 - small transactions probably mostly go below the radar.

Avoid the use of centralized exchanges which demand the ability to spy on you and dictate your behaviors. If your exchange discriminates against mixed or otherwise obfuscated coins, then it's time to find a new exchange.

There will be a huge risk to your assets when you deal with exchanges which arbitrarily lock accounts and seize funds.

Yawn. This argument has been debunked more times than I can count. The majority of funds being mixed come directly from exchanges or trades (i.e. people just trying to stop exchanges spying on them). There are thousands of completely legal and legitimate reasons someone would want to maintain a bit of financial privacy. If you don't see the need for privacy, then please list every address you have ever used, every transaction you have ever made, your real name, address, email addresses, social media profiles, bank statements, and internet browsing history. No? I didn't think so.

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Mixers, coinjoins, and generally maintaining your privacy is not the problem here. The problem is centralized exchanges which want to spy on you and tell you what you can and cannot do with your own money. Moving away from a system like this is the entire reason bitcoin was created in the first place. Stop buying in to their rhetoric that having zero privacy is "normal" and that anything you do to try to reclaim some privacy is a problem to be addressed. Privacy is normal, and any exchange which demands that you sacrifice your privacy so they can spy on you and dictate how you use your own money is an exchange which should be abandoned immediately.

OP, if you don’t want to take the risk. There are other ways to move your coins from a known public wallet to your personal, private cold storage, which probably should be private enough, and isolated from meddlesome people and blockchain eavesdroppers.

I think that Binance exchange is one of the largest exchanges in the world, that's why trading on this exchange is called centralized trading and is heavily vetted by the exchange. and that Binance can do whatever they want to protect their exchange's reputation, so I would advise against using mixers to deposit. you should send money to mixer and then send it to another wallet, convert it to other coins and then send to Binance so it will be safer and more legal of your assets.

There was a case about it one or two years but I don't think if they really do that because that's pointless and there can be many ways to bypass this strategy, generally, due to the governments and the related organizations the exchanges are forced to take every hard and be more careful about the coins they receive, but not accepting coins from mixers can not be a solution also we can not say people are doing money laundry just because of using the mixers, many people are using the mixers all the time just for their own privacy.

Most exchanges believe that mixers are used for money laundering so they don't allow assets coming from mixers, of course they have the means to track those assets coming from mixers and they are of course able to freeze your account for this or any other reason, as long as you read the terms of the user agreement and agree to their terms before registering You can do nothing but write to support and petition for your account to be unfrozen if you provide sufficient evidence that your assets are clean.

I had once in the last 6 months money sent to Binance from funds mixed at ChipMixer. Those funds went from CM (I want to make it clear, the mixer not the campaign) to an address of mine and after a while (I don't remember if it was days or weeks) to Binance.
It's not something I do often since the risk is there, but I've done it exactly as a test. Of course, it was not big amount of money (since that's how tests are done), but in my case it worked.

It was before this late Binance-KYC drama, still, maybe my test does help somebody.

I hope you have good records for where your funds come from if you face this situation. Binance recently wanted to list their stock publicly but has since faced a backlash in certain countries and are facing investigations. What happens to the coins? They'll stay in Binances possession until you can win a court case that will force them to return the funds to you - either with or without proving the source of the original payment. I cannot think of a real legitimate reason that people would choose to use mixers, which are essentially pure money laundering tools, unless they are trying to hide funds so you might be in a tough situation. It's always worth reading the terms of a site before you use it and you might just have to accept this as an expensive lesson for the future.

     You know what op, Just stay clear from centralised exchanges if you value your privacy that much (I thought you value privacy since you are using a mixer) just to be safe from all the headache and hassle. Although there can be a wide variety of reasons as to why an account can be frozen, it won't be because of some trivial matter. Either they really disallow such a thing or maybe you have touched other things they disallow. One look at the rules they set first before depositing would be a good preventive measure tho.

You should make yourself familiar with dex op, especially if you use mixer already. Another alternative would be to 'swap' your BTC to something like RBTC and then swap it back. If you don't mind wasting some fee and risking your coins, I'd not recommend it though. I used Sovryn bridge to swap my BTC to RBTC in the past, it was OK, but definitely not the first choice to 'clean' your coins. Those exchanges might start collecting those bridge address and block them too.