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9 votes

What are tainted coins exactly?

The term "Tainted Coins" is often misinterpreted as a measure of provenance. That's understandable considering the traditional definition of the word "tainted" coupled with the reality that many ...
Rob Guthm's user avatar
  • 101
4 votes

Is buying bitcoin with paypal legal without laundering concerns?

While I’m not an attorney, the website you describe would be considered a “money transmitter business” (MTB) which, in the US, falls under the jurisdiction of The Dept. Of Treasury FinCEN (Finacial ...
Dr.Plastics's user avatar
3 votes
Accepted

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

Fraud and money laundering are two different things. Fraud, or accepting or spending money under false pretenses, would be very difficult to detect on the blockchain because it requires outside ...
Jestin's user avatar
  • 8,812
3 votes

What is a bitcoin tumbler?

I recently came across an article that clearly articulates what a tumbler intends to accomplish. The analogy they gave was a collection plate at a church: You may have seen collection bags that go ...
fbrereto's user avatar
  • 601
3 votes

What are tainted coins exactly?

A thought experiment, let's nickname it "Poisonous Gift": Doesn't matter what cryptocurrency exactly, just assume the transaction ledger works like Bitcoin's. Alice (wallet A) gets ...
F. Nord's user avatar
  • 31
1 vote
Accepted

What is Operation Chokepoint 2.0?

It is a rhetorical reference to operation chokepoint Unlike the original, there is no evidence that 2.0 exists as a named DoJ project. The phrase "what many are calling" is also a common ...
RedGrittyBrick's user avatar
1 vote

Why criminals still use bitcoin mixers when there is other blockchains?

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, ...
purpurato's user avatar
1 vote

Can I cash out Bitcoin without proof of provenance?

In the US, nobody is likely to care if you assume a zero basis and pay capital gains tax on the full value of the bitcoins. If anyone asks, just explain that you acquired them back when they were ...
David Schwartz's user avatar
1 vote

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

I want to expand on @raghav’s answer a bit (which is great! I agree with what he’s written), as I’ve thought about this before as well. I see two options for getting these transactions mined: pay a ...
chytrik's user avatar
  • 18.3k
1 vote

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

While nothing stops you from paying a high fee to a miner and claiming it out of band, trying to launder any significant amounts through this would likely be discovered and linked fairly quickly. A ...
Raghav Sood's user avatar
  • 17.1k
1 vote

Is buying bitcoin with paypal legal without laundering concerns?

https://www.fincen.gov/sites/default/files/shared/FIN-2014-R002.pdf This ruling deals with your exact question.
Austin Nedved's user avatar

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