Topic: Why are bitcoin mixers often accused of laundering money? - page 3. (Read 470 times)

That's like asking how to prevent knives and guns from being used for crimes, or cars being used as getaway vehicles. You can't prevent everything. Just like you can't prevent money laundering happening with cash money.

GMTA
I think about every product on the planet can be used for good and evil. All I can do is try not to be evil myself.

We have all kind of people in our society and in the world at large. The good,bad and ugly stays together and partake in various activities or events together. They work in the same places and have fun in the same place. What I mean is that you can't read human mind to know who is good or bad. Likewise we all use the same currency and the sun and rain shines and falls on everyone. This is how we also have all kind of people using bitcoin because it is open to everyone for their own different purpose,some bitcoin users sees bitcoin mixer as an opportunity for them to launder money gotten from illegal activities because it keeps their transactions private and that was their reason for adopting bitcoin. Even our fiat currency is also use for money laundering,there as long as we are talking about money,there must be money laundering both goes hand in hand. Nothing can anyone do to stop the use of bitcoin for money laundering,only if bitcoin dies when the government of every country ban bitcoin.

Not entirely true, Bitcoin is friendly to no nation because it's decentralized and in a world where the government rules Bicoin is automatically a threat, but thank God that Nakamoto doesn't made Bitcoin a privacy digital currency, this could give them the reason to never unlift the bans on Bitcoin.

As for Mixers, I don't buy your point of exaggeration from the government, if any one wants to embezzle dirty money Mixers can get the job done easily, if anyone is trying to fund some terrorist groups Mixers can make this easy too, so why are you saying that exaggerated the whole thing?

Are we going to stick with the fact that not all Mixer users are criminals? Well that's right but at the same time how are we sure that crime organizations aren't using Mixers too? If you are the leader of a country and you want peace for your country, isn't Mixers something to watch out for? The ability of Mixers are scary in a part too.

I don't think we can handle it. the goal of mixers is to make these transactions anonymous and untraceable. Because of this, very many people think that this is often used as a tool to launder the money they get from illegal proceeds. However, I think it's hard to stop. Even as a legitimate system there will be people who use it for fraud. for example the use of KYC. maybe people think that it is a way out, but some irresponsible people are willing to buy someone's data to do KYC. it's like asking someone to set up a bank account, and pay for it. So, in every system, there will definitely be loopholes to make something illegal.

To answer the question in the title, mixers are accused of money laundering because they're used by shady entities to launder their money, I think that's the truth, people that have shady business sees what mixers do so they try to take advantage of it, anything to be one step ahead of the law is going to be helpful to these criminals. Mixers work by mixing or mashing up coins in a private pool then is sent to the receivers, it's compared often to money laundering but that doesn't mean that those who use it doesn't mean that they are committing a crime, some just want to increase their privacy.

The purpose of Bitcoin mixers is to provide anonymity, which is one of Bitcoin's incentives although some people use it to conceal their identity if they steal Bitcoin in order to avoid being tracked.

Not all mixers are guilty, but certain mixers are aware that they are participating in criminal activities, thus if some cases arise, they will be involved because they may have previously been involved in such a criminal case.

Nonetheless, Bitcoin Mixers are excellent for protecting our anonymity, even if different people use them for many different reasons.

Yes, this is a problem.... but not a problem that only exist with Bitcoin use. Many people with an agenda, will focus on Mixers and Bitcoin Pseudo-anonymity, knowing that the most money laundering are done with cash. (Fiat currencies)

This is an instance where you can say... "If you want to hit somebody, then you will find a stick" We know Bitcoin haters and Bitcoin's competition will blow up the smallest thing to discredit Bitcoin and they will ignore the flaws in their own behavior or technology. 

Yes you're right. We cannot force someone to always use a tool according to its original use. And it seems that in every innovation there is a shadow of evil. Additionally, the concept of bitcoin anonymity makes crimes easy to commit, and mixers ostensibly make crimes even more untraceable. While I like the concept of the mixer, it makes what we have safer and almost traceless


If the financial authorities do not find evidence of chat logs, can chipmixer be free from prosecution for being involved in a money laundering case?


But most of the bitcoin community doesn't like KYC, it takes away the spirit of bitcoin anonymity

It is because people can launder money using bitcoin mixers. It is not rocket science. If you somehow got coins that have bad history, you can use a mixer and get different coins. The problem here is, you don’t know whose coins you are getting so the coins you’ll get might have a worse history then what you had in the first place. I wouldn’t use any crypto mixers personally for that reason alone.

Firstly I have no idea why the accusations are coming up now, I feel the government on the other hand will do anything possible for people to have negative impression about Bitcoin and the won't stop till they get what they have being targeting which is to never let Bitcoin to be in the first place.
On the other hand, rigorous identity verification and cryptocurrency KYC processes can discourage launderers from placing crypto on their platform, and also real time transaction monitoring can help ones business to identify transaction that create compliance risk.

Mixers are created for people who want to have anonymous transactions and everyone have such need can use mixers. Criminals use mixers for money laundering but people who don't launder money can use mixers too.

The accusation that all money in and out mixers are for money laundering is not accurate. It is an inaccurate accusation which is intentionally governed by governments because they want to seize all mixers.

It depends on quality of a mixer service and how users use inputs for mixing and outputs from mixing process.

Bitcoin mixer is accused for money laundering usage because the government don't like Bitcoin in the first place, so they will try to exaggerate any information that they don't like. It's similar like government accused Bitcoin mining use a lot energy, Bitcoin is used for ponzi scheme, Bitcoin isn't safe as many investors lost their coins on a centralized exchange etc.

However usage of Bitcoin mixer isn't completely make it's anonymous, it's not as simple as that.

If I remember correctly, one of the reasons why Chipmixer was charged as guilty was because there was a chat log from one of the agents asking whether they could help launder their money, and the operator said yes. Basically, investigators use similar reasoning when they charge a mixer of money laundering. That being said, investigators can also use other reasons such as negligence in allowing suspicious transactions to be processed and so on.

Maybe we should focus on improving people's moral compass instead. Regardless of what you do, if people want to abuse something they can definitely do it.

Fiat currencies, cash are used to launder money for many decades, not recently. Bitcoin and cryptocurrencies have been creating recent years since 2009 and using for money laundering some years after 2009 when they became popular enough and adopted widely enough.

A current treatment against Bitcoin and cryptocurrency mixers is because aggressive policies of governments against the Blockchain and cryptocurrency industry in general. The war against mixers is only part of that war against this new industry.

Crypto Mixers and AML Compliance.

You simply cant. A neutral tool will always be used both for good purposes and for bad purposes. Just like how you can't 100% force people to not use knives to stab people, and how you can't 100% force people to not use the internet to scam people.

In my opinion, it should not be prevented, as it implies a loss of privacy for those who make legitimate use of it.

The powers that be are not of the same opinion, however, and just as we are in a global trend of reducing the use of cash while implementing CBDCs for total control, they want the use of Bitcoin with privacy reduced as much as possible with the excuse of AML policies.

One of the advantages of bitcoin is anonymity, where the owner of a bitcoin address cannot be known by anyone because it is not connected to a personal identity. But another advantage of bitcoin is transparency, so that transaction a bitcoin address will always be publicly recorded and can be accessed by anyone. This is a problem, especially for holders of lots of bitcoins in wallets, they will worry about their identities and transactions being tracked.

Maybe this is where the beginning of the bitcoin mixer idea is needed. Bitcoin mixer will make transactions untraceable and as a double safeguard for the anonymity of bitcoin. But in practice, bitcoin mixers are misused by certain people or groups to hide money generated from crime. Maybe we often call it money laundering

I think this is a problem, and cases of money laundering using bitcoin make bitcoin's image even worse. Even though in reality there is also a lot of money laundering that is carried out through bank institutions by falsifying bank account identities.

In your opinion, how to prevent the use of bitcoin as a means of money laundering? While we may not recommend going to KYC, it is useless and the anonymity of bitcoins will be lost.

To this day, many bitcoin mixers have been caught in money laundering cases, such as Chipmixer, Tornado Cash, Bitcoin Fog, and others. Apart from that, even though the bitcoin mixer users are at fault, those who make the mistake of using a mixer as a way of covering up their crimes, why is the Bitcoin mixer platform also considered guilty? Or is there a conspiracy between them?

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Reference : finance.yahoo.com