Why do exchanges prohibit bitcoin mixers?
Tracking Bitcoin transactions is a fairly easy process, but there are exceptions. If senders use mixers, they can complicate the journey from real identity to cryptocurrency address.
The original advantage of the crypt lies in its use with complete anonymity of senders or recipients. However, such a claim is considered a common misconception in the industry.
If we talk about real facts, tracking Bitcoin and other cryptocurrencies has not been a complicated and confusing process for a long time.
This fact was proven a few days ago, at the moment when the mastermind of the bitcoin fog was arrested in the United States, the principle of which is to mix digital assets. The authorities managed to carry out the takeover of the operator after the blockchain was analyzed for ten years.
It is not necessary to have a career as a forensic analyst to understand that all transactions are linked to addresses and stored on the blockchain on a permanent basis, regardless of the number of years that have passed. A whole chain is used to determine the identity of the offenders. Of course, based on the available data, it is impossible to find out the address or personal information, but, as a rule, the actors give themselves away. They pay for products and services with the proceeds, making it easy to identify the sender or recipient.
In this case, everything is also simple. The account holder used the funds to pay for the server hosting. Services that mix bitcoins complicate the path of digital currency movement and generate it with the currency of other users, after which the input and output addresses are hidden. This way, the best privacy is ensured.
Offering centralized mixers is an obvious single point of failure problem. Despite the fact that some users are convinced of the reliable protection of an object, secured by several signatures, the desire of service representatives or a hack will instantly deprive everyone of privacy.
To eliminate this risk, CoinJoin took action. Two users combine their data, resulting in a single transaction. Before its broadcast, all participants leave their signatures. As a result, no one has access to information about the real origin of the coins, which ensures complete anonymity for both parties.