Money laundering is a process of disguising the source of money. It is most commonly used to allow money from an illegal sources such as drug trafficking to be used as legitimate income.

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is it possible to launder bitcoin by exchanging it for litecoin and then back to bitcoin?

The scenario I was thinking of was I have some bitcoin from doing Bad Things (TM) that I want to launder. I could register with kraken.com and trade only virtual currencies with the L1 verification ( ...
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2answers
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What is a bitcoin tumbler?

I have recently heard of a bitcoin theft where the thief used a bitcoin tumbling service in an (apparently unsuccessful) attempt to cover their tracks. From this event I have several related ...
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1answer
322 views

What are the “Know Your Customer” challenges that Bitcoin faces?

Can anyone explain what KYC (Know Your Customer) regulations are "missing", tough or impossible to implement with Bitcoin? I will offer a bounty to the most detailed answer (However this question is ...
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4answers
2k views

What can be done if Bitcoin is used for money laundering?

If a criminal uses Bitcoin to launder his funds, can the bitcoin network stop him from using Bitcoin? Can we close his account?
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2answers
502 views

How to prove legitimacy or that my coin was not used in a recent illicit deal?

Let me start by saying that I understand that the money in my wallet may at one time have been used in an illicit transaction. We have a question that we need help with. How do we show regulators ...
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1answer
764 views

How does the blockchain.info shared receive work?

I understand the concept of a mixer and have succesfully used Blockchain.info wallet's shared send feature. The shared receiving address however confuses me. I assumed that one needs to click "new ...
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How does blockchain.info's mixing service work?

Blockchain provides a mixing service. How does it work?
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3answers
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What are tainted coins exactly?

I've come across the term of a tainted coin several times now. I understand that coins, or better, the origin of a coin can be traced throughout the blockchain. I've read that bitcoins can be ...
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4answers
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If you trade with bitcoins, how do you manage to “explain” anti-laundering authorities the money-in & money-out?

When trading with bitcoins using mtgox, or bitcoin-24, or bitcoin.de, you will have in your account many transfers of money, to many people and from many people. In europe if the sum of the ...
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1answer
68 views

Might AML regulations have to be applied to unofficial currencies sites in EU?

Is there any AML regulation in EU countries which might have to be applied to unofficial currencies, such as Bitcoins? I guess usually they only apply to state-backed currencies, but since Bitcoins ...
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2answers
541 views

Are there mixing services or online wallets that are explicitly compliant with anti-laundering laws?

I'm interested in mixing services (0% taint) that are compliant with the most conservative anti-money laundering laws. My goal is to have anonymity between peers in a transaction, but to remain ...
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1answer
591 views

Which Bitcoin exchanges allow anyone to fund your account by a bank transfer?

I know MtGox doesn't allow for such transfers to prevent money laundering. Which exchanges allow for anyone to fund your account with a bank transfer (USD preferable).
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1answer
590 views

Bitcoin mixing and transaction sizes

I'm pretty clear on how a Bitcoin mixer obscures transaction history, but I don't understand how an observer is not able to reasonably link the source and destination wallets simply based on the ...
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Unknown factor in bitcoin pool breakdown

Some time ago the breakdown was dangerously close to heaving too heavily towards Deepbit with only a small part unknown/single person miners. Now there's a 34% unknown factor. What caused this? Are ...
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7answers
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Can Bitcoin help people commit money laundering?

I don't have enough knowledge pertaining to the Bitcoin mechanism. Can Bitcoin help people commit money laundering?
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9answers
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How is it possible to launder bitcoins?

Some services, such as bitcoinlaundry.com, claim that they can launder your bitcoins. Since all bitcoin transactions are publicly logged, how is this done? Wouldn't it be possible to trace back the ...