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Questions tagged [money-laundering]

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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What is Operation Chokepoint 2.0?

What exactly is Operation Chokepoint 2.0? In an email with subject "[URGENT] Bitwage Banking Switch - Change of Service Offered" dated today, BitWage said: Dear Bitwage Community, The ...
3 votes
3 answers
355 views

Can stolen or otherwise tainted coins be laundered through mining fees?

Do chain analysis techniques consider the fee portion of block rewards as tainted funds? e.g. if known stolen funds are moved in a certain block, the fees the sender pays end up "polluting" ...
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1 answer
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Why criminals still use bitcoin mixers when there is other blockchains?

I came across the following article Allen Goldmann, A person is trying to hide $5 million in stolen Bitcoins from a Darknet marketplace, Forbes, November 28, 2022 where some criminal tried to ...
37 votes
10 answers
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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 ...
33 votes
6 answers
14k views

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 ...
-2 votes
1 answer
144 views

Can cryptocurrencies like Bitcoin be turned into a censored payment system under that would be financial regulation framework creating soft forks? [closed]

It s well known mining pools as well as hashing power is centralized in countries where electricity is cheap and using mining farms rather belonging to at least medium sized companies than single hand ...
3 votes
3 answers
664 views

Is buying bitcoin with paypal legal without laundering concerns?

I'm a software developer, and I want to make a website that allows users to sell bitcoin instantly for paypal cash without the hassle of an exchange - I don't even want to make a profit from it. The ...
3 votes
2 answers
1k views

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

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).
1 vote
1 answer
170 views

Can I cash out Bitcoin without proof of provenance?

I have around 25 BTC from back when Bitcoin was around 10$ or lower. At the time, a friend sent them to me and I never thought they would ever be worth much. Since that time, I've moved them around ...
0 votes
1 answer
98 views

What’s the point of wannacry for exchanging Bitcoins to Monero? [closed]

At first glance, exchanging Bitcoin for Monero makes sense. But why use Monero with an exchange, which is likely to help the police? (And which did.) Monero transactions are private only on the ...
1 vote
2 answers
216 views

Can the fees in a coinbase be used to launder Bitcoins?

Generally Bitcoins coming from a coinbase are considered clean as they are newly generated. However while answering this question I realized that mining pools could offer to launder Bitcoins in the ...
8 votes
2 answers
2k 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 ...
2 votes
1 answer
105 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 ...
1 vote
2 answers
652 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 ...
2 votes
0 answers
303 views

Is the BTC-e shutdown legal?

The FinCen, dependent of the Deparment of Treasury shut down the BTC-e exchange and prosecuted for: Violation of anti-money laundering (AML) laws; Acts of money laundering such as the MtGox scandal ...
5 votes
1 answer
802 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 ...
8 votes
3 answers
34k views

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 questions:...
2 votes
0 answers
465 views

How do exchanges like ShapeShift, Changelly or Evercoin cope with KYC/AML regulation?

They don't require any information about their users. Most of the exchanges require user identification: so even though exchanges like ShapeShift might have corporate account on the large exchanges ...
7 votes
2 answers
8k views

How does blockchain.info's mixing service work?

Blockchain provides a mixing service. How does it work?
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1 answer
188 views

Which data should be used in order to detect addresses to be used for fraud?

I’d like to analyse bitcoin blockchain in order to detect addresses used for fraud, like money laundering. Since I cannot get any addresses info that was really used for fraud, I need to analyse which ...
5 votes
1 answer
281 views

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 ...
1 vote
1 answer
1k 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 ...
7 votes
4 answers
3k views

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 ( ...
1 vote
2 answers
1k views

Launder cash using bitcoin atms

Is it possible to launder cash this way: Purchase bitcoins at an atm using cash. This is completely anonymous right? Then sell them on an exchange and report the gains there to the IRS as if they were ...
15 votes
8 answers
3k views

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?
5 votes
2 answers
720 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 ...
10 votes
4 answers
3k 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?
3 votes
4 answers
1k views

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 ...