Topic: What is stopping a troll from tainting dozens of whale wallets with tainted Btc? (Read 126 times)

taint was actually a term about the source of the UTXO. where people can follow each input of a new TX's 'taint' back to the output of the previous old spent tx, to that previous source all the way back to the block reward the coin originated from

more recently the term has become associated with the mindset meaning of dirty coins of criminal activity being painted with a 'red flag' colour/or blacklisted...  but taint was an innocent term back in the day, where it was more about accounting/auditing that all coins resolved/originated back to a genuine block coin reward. where every coin has the original definition of taint


silly think is.. using mixers is literally LAUNDERING.. so your doing money laundering thinking that you are escaping the red flags of AML/KYC .. but by laundering you are creating the AML flag they seek.

if you are a innocent person with no criminal activity.. dont use mixers.
for 1. you are creating a red flag by using mixers
secondly criminals are trying to get rid of their "dirty" coins by trying to get clean coins from innocent people.
so while you using a mixer your non criminal coins go to a criminal and a criminals coins go to you. now you become the suspect of their criminal act.

..
yea criminals want to pretend innocent people should use mixers.. not because they care about innocent people privacy, but because criminals if only criminals used mixers, the only coins they can mix is with other criminals. so they want 'fresh blood' in the mix to 'steal' clean coins from naive innocent people and palm off the dirty coins to innocent people and get the innocent people in trouble and questioned about how the innocent people are holding dirty coins..

in short. if innocent. just dont use mixers.

if you dont want to look suspicious when walking down the street. you dont do it by hiding behind bushes. you simply walk down a street normally.
even if innocent of any crime, by hiding in bushes trying to not get spotted. you are surely going to get noticed more because now your activity looks suspicious and people will stop an ask what your doing trying to hide behind a bush.

so just dont try hiding and you wont raise red flags

The money is not supposed to be treated as clean and polluted, but whether the transaction is legal or not, regardless of the nature of the money that was used, meaning that the same money that is used in illegal activities must be returned to be used in legal activities while punishing criminals.

Therefore, providing a minimum level of privacy is necessary for the network to be sustainable.

First of all there is no such thing as "tainted bitcoins". That is a fake term that some companies came up with so that they could make money by calling some coins "tainted".
Secondly your list contains the obvious cases, these companies working as "blockchain analysis" would consider arbitrary outputs as "tainted" too. For example they have marked a lot of coins coming out of exchanges as tainted too!

Those companies I told you about don't really check the address, they check the outputs so it doesn't matter if the address received some so called "tainted" coins, if the transaction doesn't spend them it should be fine. Although as I said, their coins may still be marked arbitrarily!

There is a much better solution which is to stop using centralized services that freeze your account arbitrarily.

Bitcoin mixers are a thing. Weren't Bitcoin mixers created with the sole purpose of "cleaning" tainted coins?
Why would a criminal waste all his tainted coins, when he could just clean them by using a Bitcoin mixer?
I'm no expert in this field, but it doesn't make any sense to me. If some random criminal sent you a thousand "dirty dollars" (without any reason whatsoever) would that make you a criminal as well? You did absolutely nothing and you have no fault(and you can prove that in court), who is going to blame you? I'm sure that the authorities and the centralized cryptocurrency exchanges aren't that dumb.
Everyone is innocent until proven guilty. We don't live in a totalitarian world(maybe we will after a few decades).

Whale wallets with clean coins are probably known to the exchanges by now. I fall of a sudden they receive dust of tainted coins, the whales will just thank the troll.


Would they do the same for the coins going out from wasabi wallets?

It does sound like they are working alike making the coins handled by a pool and going out clean, sending those coins to a dex and out to a centralize exchanges will likely be seen as clean coins.

Exchcanges would treat such addresses as separate persons as their transaction histories are different - nevertheless, those funds would most likely also be frozen unless it was a dust amount: < $10 for example.

So it's down to nobody wants to waste their coins to taint other peoples' coins. They find it much easier to troll right here on this forum, proclaiming how BTC is going to go to zero and such.

I guess at most it would be a minor to major inconvenience depending on how long it takes for their funds to be unfrozen.

Human factor. If whale's transaction will get frozen, they will contact customer support and explain to them that they have no business with the taint transaction, and customer support will unfreeze it, because the company wouldn't want to lose a big customer and go to court for stealing funds.

"Taint" is not an objective metric, it's basically a way for law enforcement to look at coins and conclude that they might have been involved in criminal activity. It doesn't even have any legal meaning, it's just a heuristic.

Bitcoin from coinjoin can be and would probably be seen as tainted by exchanges, any coin linked to illegal activities are tainted.

Yes

Never use a centralized exchange. Or split the coins and send in like 5 to 10 different transactions to address you owned and split it the more, wait for like hours or even days before each transaction, the longer the better.


Coinbase is a centralized exchange and the coin will be seized and ID documents will be required.


No. Addresses. But it is possible that many addresses can be connected together. Another is a centralized server of a SPV wallet linking many addresses of the same wallet together and also with the IP address used.

Do not get yourself in anything that is illegal, this is just a means to avoid your coin to be seen as tainted.

So you know how some exchanges will freeze or reject "tainted" bitcoin?

Bitcoin from coinjoins, or bitcoin known to be associated with silk road 'type' places?

What if someone fed up with not being able to offload their tainted bitcoins send small amounts of theirs to public addresses that have lots of bitcoin.

Would doing that, taint those larger addresses if those whales then sent their bitcoin to an exchange like Coinbase?

How does it work, do these exchanges treat every wallet connected with a tainted wallet as also tainted or do they treat them as separate individuals?

Meaning a tainted bitcoin wallet could just open a new fresh bitcoin wallet and transfer their tainted bitcoins to that new fresh wallet as like a new identity... since you know it could very well be a new totally different person. You wouldn't know.