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I came across the following article

where some criminal tried to launder stolen 300 bitcoins with mixer "desperately creating new wallet addresses".

There is a lot of forensic techniques which let tracing crypto within same blockchain easily enough, so my question is very simple: why not just convert stolen bitcoin to other crypto based on different blockchain (chain hopping)?

P.S I assume that tracing will be stopped in the point of transfering between blockchains (you transfer from wallet A1 to wallet A2 of blockchain A and get the funds on wallet B1 from wallet B2 belonging blockchain B)

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  • As you say a lot of forensic techniques which let tracing crypto within same blockchain, so why not such of techniques not exists in a diffrent blockchain as you say ?
    – Pegasus
    Dec 16, 2022 at 12:12
  • @Pegasus, I suppose because tracing will be stopped in the point of transfering between blockchains (you transfer on wallet A of blockchain B1 and get the funds on wallet B from wallet С belonging blockchain B2)
    – AseN
    Dec 16, 2022 at 12:41
  • @AseN but if you use a normal exchange to convert currencies, the money can be traced by the exchange. Most of them apply Know Your Customer (KYC) regulations intended to counteract money laundering. Dec 16, 2022 at 22:56
  • @RedGrittyBrick, KYС is good point, but it hard to imagine that all of exchangers do it, especially in darknet. And even if there is KYC, can`t it be bypassed with simple scheme: BTC->Monero_wallet1->Monero_wallet2->BTC?
    – AseN
    Dec 17, 2022 at 10:00

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I believe it's a matter of liquidity, and BTC is the most liquid digital asset right now. In the case of fiat, if you stole US dollars you wouldn't change them to Turkish liras just to be untraceable, you rather find a way to keep the USD. It's a Forbes article anyway, it could be mainly FUD for people to stay away from "crypto".

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  • Thanks for reply! What about liquidity, is not is enough of it in closest to Bitcoin blockchain - Etherium?
    – AseN
    Dec 17, 2022 at 9:58

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