Topic: I used a mixer and then got banned from exchange. Now what? (Read 323 times)

There must be and some Cex also have governments that are pro Bitcoin and I also don't recommend trusting Cex completely because it is not recommended for storing assets. Cex is only a place to convert crypto into fiat and the only way is to use p2P, there is no other way so Cex is still needed for several transactions that must be carried out.

You're right, most big crypto exchanges and betting websites demand you prove your identity these days before you can use them.  Can't slide by anonymously like in the past.  However, there are still decentralized exchanges that let you trade crypto without needing to submit documents or selfies to show who you are and  these peer-to-peer platforms hook up users directly rather than going through a company in the middle.  So they don't have to follow the same know your customer rules that the centralized outfits require.   

I think the exchanges block such transactions when they suspect money laundering and mixers are of course known to be used for laundering although people are using it for privacy the general perception of mixers is negative.

You might have to submit documents and then able to move the funds.

In future,  I suggest you to use a blank wallet which is used to receive and send money so it's not directly linked to the exchange as suspicious. For example, if A is the mixer wallet and B is the target exchange wallet where you want to send, then use C, a middle wallet where you receive and send from.

I see now. now every crypto-exchange and even gambling site are needed for KYC.
It's quite clear that the government enforce strict regulations in the crypto space

Most platforms are now able to recognize transactions issued by Mixers, and the licensors of the platforms are forced to deal with these transactions with caution and therefore subject them to processing before exporting them. Also, this process is not supposed to last more than a quarter of an hour if the treatment conditions are sound.

Perhaps there may be CEX platforms that are less strict or efficient in terms of detecting transactions related to the mixers, but as the client continues to do this continuously, they may block his account or freeze his funds one day and request documents for the source of the funds, and this is 100% expected if the FBI seizes the mixer service. Not your keys, not your crypto; everyone must believe in this. They can make any unfair decision against any client at any time to escape regulatory penalties from responsible authorities or pay fines. Even Now that centralized exchanges have removed privacy coins, how does CEX allow privacy and decentralization for its customers? I do not recommend using them except for small amounts, away from mixer transactions and signature campaigns, and looking for better alternatives.

This will also take away a person's freedom to send funds, before they even realize they are already banned because the person sending funds was detected to be connected to the mixer. This is indeed a rather extreme regulation, even though no criminal action has been committed. when someone receives payment for a signature campaign that might be an indication as well. So if you find an exchange that is too strict about the source of funds and even the funds are only a little, it's better to forget it and use another Cex, there are still many Cexes that are safe and not too strict with regulations regarding mixer addresses.

I don't think any big exchanges would accept you using mixers to transfer money to them. Pretty much all CEXs imo would have some kind of law/precaution with regard to mixers since they hide potential money laundering transactions and in such cases, they just choose to ban everyone who tries to use them.

I'm not familiar with how CEXs track tainted wallets but wouldn't the other wallets be fine? I mean if mixer > wallet 1 > wallet 2 > wallet 3 was the process, then any wallet that has sent coins to those 3 should be safe. I can't say the same for any wallet that has received coins from those 3 though since they may tie it to the coins received from the mixer. To be 100% safe though just avoid using any of them I guess? P2p might be the best option for your current existing funds.

Unfortunately, many CEXs definitely have regulations like that, especially if you live in the US, right? because of course the regulations are quite strict there. Actually, not only from mixers, but usually CEX will immediately react or act quite strictly if there are transaction funds from several suspicious origin addresses, especially if they are suspected of coming from mixers. Never mind mixers, in my country's CEX, if we make a direct deposit from a gambling exchange with a large enough nominal amount it will usually be detected and then the funds will be frozen. So, one way is to contact their CS to ask what you should do next. Usually they will provide a solution. hopefully that will happen. and from this we can take lessons to be more careful.

That seems rather extreme.  You're saying you didn't send the funds from a mixer to the exchange, just the fact that a mixer had sent funds at one point to your account was enough to get your banned?  Was it the same funds from the mixer?  Have you ever sent funds directly from a mixer to an exchange?  This seems like a dangerous problem for the community.  Essentially anyone that pays anyone using a mixer could be screwing over the person they send funds to and having their exchange accounts closed if this is true.  Pretty messed up behavior.

I wonder if people stop doing p2p after a while if there's a high change they are buying tainted coins that can get their accounts frozen. It's also harder to prove the origin of the income by doing that, as that's required soon, at least for significant amounts.

And sorry OP, i don't know what to tell you. You might want to pay attention what FinCEN and FATF have been doing.

Try another exchange, as simple as that. If there are any problems like that, simply just use a p2p, meaning you give your money to someone and they give you cash, and then you use that cash to get it from someone else and hope that the person who buys from you doesn't check the address but when you are buying check the address.

It is really simple as long as all goes well, if something goes wrong that would be trouble but do not hesitate to back on a deal when it doesn't suit anyone, for example you are selling, they say it's tainted, say sorry and move on and find someone else instead of trying to convince someone to take tainted address money. If they say nothing, it's their mistake for not checking and they are on their own. That may sound terrible, but the whole tainted money ecosystem revolves like that, they will do it to someone else, and so forth in full circle.

Kinda weird, normally after the user withdraws the coins from any exchange = the exchange doesnt need to check where it goes? what for? its not their resposibility anymore.
I dont think that is the reason why they banned you, there must be another reason.

Any exchange with policies like that will close their service soon, nobody will use it again.
For example, I withdraw 0.1 ETH from Gemini then I sent it to my friend or to buy something online and he/the merchant sent it again to the Mixer.
So my account will be banned in Gemini because of that?  Has that made sense at all for you guys here?

You shouldn't use any mixers nowadays because even if you managed to get away the first time, the next time you send some altcoins to their exchanges they will gonna banned your account, and hopefully that's only a small amount because if it was big, then prepare your long and solid statements to get back your altcoins. This once happened to me but my mind was only local exchanges and I never thought they were also aware of making it illegal to use mixers last year, thankfully it wasn't difficult to ask them to get my coins from their exchanges since it was just a low amount for them. We just need to be careful next time and read the rules if they have an update to their terms and regulations.

It doesn't matter if wallet 1 was "inactive" for a long period as long as it can be linked to mixers. I can't really suggest which alternative to Gemini you could use but at least do more effort in breaking wallet links. I am guessing you were also a verified user there so I don't know if there's a shared data among US-based CEX and if they could also ban you based solely on Gemini's action. P2P could be your best option now.

Binance US will exit the US market as part of the settlement with the regulators.

Sorry to know that you lost your account.
Binance and Okex can be good options as alternative CEXs. you said you are American so you can use Binance US. Coinbase can be an option too. but I would not suggest to involve any mixers with any CEX.
But My advice to you for on/offramp purposes is that you should use a non-custodial wallet of your own (create another one if you don't want to use your personal wallet). you can transfer your funds from your exchange account to your wallet and then use a mixer to pay multiple people.

It is not good that you got banned from your main exchange especially if you need it to convert cryptocurrency to regular money.
It is hard to know for sure if anything related to your wallet is now considering bad. Using a mixer can make your transactions more private and secret but it can also make exchanges and regulators worried.The exchange thought your transaction was suspicious because it was connected to a mixer. Therefore they banned your account.
Now let's talk about what you can do next. You can try contacting the exchange where you usually trade to ask them about the ban and if there is any way to fix the problem.
And if you are an American citizen so I dont know what should I say because I am not American and don't know the rules and regulations of your country so if you are citizen so you follow the rules.

There is a limit to how many hops into your transaction history exchanges will look into. If there is enough distance between your current wallet the mixing service you used then a new exchange would be unlikely to ban you based on blockchain data not being enough to prove you were involved in illegal activity. It is not a good idea to use mixers if you intend to use centralized exchanges. You are probably not entirely out of options but you will have to look into that yourself since discussions around how to remove taint from your coins might go against the forum's new rules.

You probably have access to search engines like Google, but alright, here's one quick article: https://news.bitcoin.com/another-crypto-exchange-discourages-the-use-of-bitcoin-mixing-services/

Binance, Paxos, Coinbase, and pretty much almost any exchange that isn't planning on getting shut down.

That's how they see people using mixers as if folks are criminals but they have to do it in compliance with the law that is also monitoring them.
You have to abandon that wallet if there is no more balance but if there are still some balance on it, aside from transferring it to several addresses that you own although that's not guaranteed, you can use swap or instant exchanges for your own convenience and just convert it into another altcoin.

Have you ever contacted the customer service of the exchange to know the reason while you got ban in the exchange because of the mixer you used, their is something that come to my knowledge concerning cryptocurrency and exchange, their is some certain exchange that doesn't have affliction with some of mixers and whenever they detect were your coin is coming from they may think that the coin is a stolen money converted to coin and mix it so that it will not be traceable and if it happens to be traceable their exchange can be seized without informing them

Most of the time, they didn't even tell where the money goes


Why you use that exchange.
that's not good CEX, coinbase is better. i heard there is many issue with that CEX especially they commit user fraud

So you just let it go now?

They probably track the transaction by source of funds. I am not sure how they detect the mixers or how many transactions they track. So better avoid any connections with mixers and exchanges that don't allow you to use a mixer. Otherwise, even if you move other exchanges, you won't be safe. Always try to get fresh coins into exchanges where mixers aren't allowed. I advise you not to take a risk; they might block your account with large funds.

And why do you think the exchange banned you from using their service even though you didn't deposit the mixed crypto to the exchange?

Usually, the exchanges won't ban the account unless the deposited fund is tainted not because the person may deposit the tainted funds and they have no right to assume in that way.

First, ask customer support about the reason for your ban. And if you already did, just ask for the actual reason irrespective whether you get back your account or not.

The exchange is gemini.  I did .1e cause I wanted a wallet to pay people with that isnt connected to my main wallets.

Went like this.  CEX ---> wallet 1 ---> wallet 2 ----> wallet 3 ---> mixer
I havent sent from the CEX to wallet 1 in months.

Yes I contacted support.  They wont reverse it, my account is gone.  So hoping theres another CEX I can use to on/offramp 100s of thousands in USD.

Exchanges might have tracked you withdrawing the balance to a mixer address or the ban could be a unconnected one. If you are using the same wallet to send and receive from mixer than that would not work. But if you mixed and sent to a new address, the new coins should be good. Just stop using the old flagged addresses and empty the balance using a way that would not track to you. Get in touch with the exchange and find the real reason for ban and follow any instruction they might provide for staying safe in the future.

Exchange are maybe careful to deal with balances coming from exchange that's why it happen so maybe the best thing to do is to contact the exchange support then ask for certain clarification regarding on that case so that you can be get a clear words if you can still get those funds or not. Next time maybe try to avoid redirecting your funds to that exchange especially if they are been monitored by government since this might really happen again if another transaction by using those platform will happen.

Also clarify if what exchange is that since if it happen you send it on binance then they are strict regarding on funds sent comes from mixers especially the latest controversy happen on a big mixer site hit so hard since it has been seized by government and they are tracking each transaction happen maybe to track people using their services.

How many fiat payment gateway options do you still have? Binance US is out so you're probably left with Coinbase and Robinhood? mk4 suggested multiple hops over a period of time and I think that's the safest option you have. I would have suggested a combination of mixer + at least two hops using DEX if you're not willing to wait that long and if you're willing to take that risk. You can pick no KYC exchanges from the list https://kycnot.me/?type=exchange

If transaction from mixer wallet to your exchange wallet confirmed than their is no others solution than getting back your exchange account unbanned. You have not provided details why your account has been banned and whether you have contacted support team or nkt and what reply you got from team. If you gives all these details then it will be easy to recognize your case. You should contact your exchange and I hope you will get your fund if you have not done against exchanges rules and regulations.

You didn't tell us which exchange you used.
Every exchange has different policy and you didn't even ask the exchange why you got banned. Maybe that mixer wallet has been flagged

And yet you didn't tell us which exchange

What was the reason of sending 0.1 to exchange using a mixer? I mean it is very small amount. I wouldn't use a mixer for that much money.
And Did Exchange gave any reason of that ban? did they told you they've banned you for this particular reason? maybe the ban was for some other reasons. try contacting them via customer supporter. You might be able to get your account back.

Using a mixer might have caused your main exchange to ban you. The wallet could be flagged. You could try talking to their support. For on/off-ramp, check out decentralized exchanges or peer-to-peer platforms. Make sure not to use the same address

With the recent discussions about mixers i do not think it would be wise to keep on using addresses related to or has a connection to the ones that got banned i am guessing you are going to have to identify the specific conditions about the ban did they close your account and you can no longer access your coins?

For now just try to be the most careful since you are dealing with mixers

If it were to be for the CEX alone, they would not bother since this is a business, they will just look away and continue to give you the best of services. But it is beyond that now and we should expect worse over time because regulators are now on their necks, CEX doesn't want to be painted black obviously with what m!xers are known for these days. Of course, they are in a better position to help the law enforcers more and they must continue to cooperate to avoid fines and keep their business running. Regardless, I believe you should have known better, no one should send their m!xed coin directly to the exchange, it risks banning and I expect this to be more strict with time.

Exchanges, on the other hand, could be overbearing at times, they might want to seize the coin and claim it for themselves, which might be the reason why they ban the account at times. I am just saying, it could be either of the two as I explained. The situation is not that bad if your money is clean, but I advise now that you should avoid dealing with anything linked to that address if they are centralised/custodial. You might open a fresh one for new transactions and if there is still money lurking somewhere in them, you might first want to use DEX to fix it and start afresh if you would use CEX again.

Just so you know — there have been a decent number of posts here on Bitcointalk and other crypto-communities concerning their CEX accounts being banned because of them mixing/CJing their coins. There have been several exchanges that have already spoken about this as well.

all you have to do is ask the exchanger who was banned. then why was it banned. ask for a solution what to do to get it unbanned. crypto currency is nothing strange your coins come from anywhere will not be questioned. the solution is just above that contact the CS exchanger. or use another exchanger if you want to cash out the crypto you have into fiat money. via p2p or sell directly to crypto users where you live.

Not totally sure what the best thing to do is, but if I were in your situation, what I would do is send the coins to probably a dozen wallet addresses, and continue sending and sending to different wallet addresses for a month or so(probably 20 times? depending on how sure you want to be); so if your coins have been sent over with a good number of hops, hopefully their system ignores the mixing history.

So I week ago I used a mixer to send .1 eth from one wallet to another.  The wallets I used have never been sent to or from a CEX but did have the connection indirectly.  So yeah I just got banned from my main exchange that I hardly use anyways but would need it to go fiat on/offramp.  So is anything connected to this wallet tainted now?  Will I be able to use a different CEX for on/off ramp?  I am american btw.  What do I do now?