A bitcoin mixer is a service that makes it hard to trace cryptocurrency payments back to their original owners. It works by mixing the coins with those of other users before transferring them to the recipient’s wallet. This is also called bitcoin tumbling.
Elliptic’s analysis shows that Blender’s operator, Nguyen Thanh Nguyen, has re-launched as Sinbad, and it’s already been used to launder tens of millions in stolen cryptoassets from the Lazarus Group hacks. Sinbad is a custodial mixer that operates similarly to Blender.
It is a way to increase privacy
Mixers (also known as tumblers) are used by people who want to increase the privacy of their bitcoin transactions. The way they work is simple: the senders deposit their bitcoins into a combined pot and then the mixer shuffles the coins to make them impossible to trace. Typically, the higher the number of participants, the better the mixing. Nevertheless, the mixers can still be traced by law enforcement agencies or exchanges that keep records of deposits and withdrawals.
The US Treasury recently imposed sanctions against the cryptocurrency mixer Blender for its role in helping cybercriminals launder stolen digital assets. The agency says the service helped North Korea’s Lazarus Group launder more than $20.5 million from a virtual currency heist on video game developer Axie Infinity. The move marks the first time that US authorities have imposed sanctions against a cryptocurrency mixer.
Blender and similar services are popular among thieves who need to obfuscate the origins of their illicit proceeds, which are then sent on to their final destination. In some cases, the crooks will then mix their proceeds with other users’ bitcoins in a process known as “tumbling.” This makes it difficult for law enforcement agents to track criminal funds.
However, many people also seek transaction privacy for other reasons. They may want to protect their financial information from competitors or they may be living in a country where the government restricts civil liberties. In such situations, mixers and privacy coins can help people avoid censorship or persecution.
It is a way to launder money
A bitcoin mixer is an online service that combines someone’s illegally obtained cryptocurrency with other people’s legitimate crypto transactions, making it nearly impossible to trace any single transaction back to its original owner. This is also known as tumbling, and it makes it extremely difficult for law enforcement agencies to identify the source of any suspicious activity.
While many people use these services to protect their privacy, others are using them for illegal purposes. Some experts argue that these services are a popular way for criminals to launder money. However, a recent study by blockchain analytics firm Chainalysis suggests that most users are regular bitcoiners who value their privacy.
In one case, the founder of a bitcoin mixer called Helix was arrested for helping to launder more than $300 million in illegal funds. He admitted that he partnered with several darknet marketplaces to provide bitcoin laundering services for their customers. Helix moved 350,000 bitcoin on behalf of these customers, including some that were used to commit illegal drug trafficking offenses.
In addition, researchers have found that unregulated cryptocurrency exchanges that do not require Know-Your-Customer and Anti-Money-Laundering (KYC/AML) procedures receive 97 percent of dirty Bitcoin. This is likely because these exchanges are easier to use and less expensive than using a bitcoin blender
It is a way to make money
Bitcoin is a new form of money, and some people think that it offers an easy way to make money. However, the truth is that it takes time and effort to earn Bitcoins, just like any other currency. You have to buy them and hold them until their value increases.
A Bitcoin blender, or cryptocurrency mixer, is a service that mixes your cryptocurrency transactions to prevent their identification by other users. There are several types of Bitcoin mixers, including centralized and decentralized services. While the two are similar, there is a difference between them: centralized mixers charge higher service fees than decentralized ones.