BTC Laundering: Post-Tumbler Taint

In Alpraking's Kingpin Handbook (https://www.reddit.com/r/DarkNetMarkets/comments/4dxjw6/alprakings_the_kingpin_handbook_chapter_13/), he recommends:

"Bitcoins are very easy to launder. First, tumble them out from the markets to a tumbler. Then, create a front-company, registered, with a real service/product that accept bitcoins. create invoices, and pay them directly from the tumbler. Each transaction will look like its coming from a unique btc address. Once laundered, just send your btc to any exchange and cash them out. Once the papertrail is created, there is no need to hide them anymore."

My question is: Isn't there always some degree of "market taint" in these bitcoins POST tumbling, because the tumbler wallet is only once or twice removed from the markets?

Is this not enough to tip off anyone skilled in cryptocurrency forensics that these BTC's are laundered from a market?

/u/Vendor_BBMC care to chime in?


Comments


[12 Points] None:

BBMC being asked for advice?

Mark this date, gentlemen.


[5 Points] Vendor_BBMC:

I'm most-familiar with bitcoinfog, which has TWO stages. I believe it to be uncrackable under normal circumstances, for all practical purposes.

When you deposit a bitcoin into bitcoinfog, then tumble it, it doesn't move! Why? Because SOMEBODY ELSE'S BITCOIN IS TUMBLED for you. Your bitcoin will be tumbled for a few people next week.

This first stage is a bit like Grams Helix, I think.

The second stage is a true tumbler. Like a tree trunk splitting to branches then to twigs. The bitcoin is split into 4 or 5 bits, and each of these bits is split into 4 or 5, and so-on, like 40 or 50 times. So at the end of this stage its in 5 x 5 x 5 x 5 etc (5 to the power of 40) wallets, although its less than this number because some of the wallets are used by several "twigs". After about 3 hours your bitcoin is in thousands of wallets.

Then the bitcoin dust starts joining back together into powder, then snowballs, then finally, a snowman again in whatever wallet or wallets you specified.

This tumbler bit, if you see the bitcoin actually going IN, can be beaten. That's what the first stage is for, but a large amount of bitcoin in one lump is too big for stage one. If you try to tumble 59,000btc there won't be 59,000 in bitcoinfog from last week - so your 59,000 btc have to go straight into the second part (the tumbler).

If you are following on the blockchain, it suddenly goes mad at this point. What you have to do is follow the largest snowball at each stage. Eventually, they start getting bigger again as the bitcoin is reassembled, then it pops out again.

Alpraking is right, his btc will be pretty much taint-free assuming he ignored all the "bitcoinfog selective scammer" FUD. However, if a policemanbought bars from alpraking using multisig escrow (so he could watch the bitcoin), he would see the bitcoin going IN to the tumbler.

Tumblers are designed to hide the SOURCE of the bitcoin. If you are the source (a cop buying xanax at east india Company using multisig escrow), there is still a small chance you can find alpraking's legit bitcoin business. But then he's stuffed (the cop), because anybody could have sent the bitcoin to that business.

Qualpra ting has got a pretty watertight money-laundering path going there, and he's probably lied a little bit too, to throw the cops off the scent if they read that.


[1 Points] MitalikaSucks:

Interesting question, following


[1 Points] Pelican_Vendor:

Yes always some btc taint. Find a vendor who has a decent fees to do cash in mail for you or find a lbc seller


[1 Points] DNM-Accountant:

If you tumble your amount withdrawn from the market you are garanteed to not receive BTC that is overly tainted with market addresses (if using a proper tumbler). Please after your tumble check if some of the top tainted addresses are linked to a market afterwards.

From here on it is no criminal offense to receive an amount of BTC where maybe 2% of the BTC has ties to a market. Coins come and go everywhere and they have no way to link it directly to your activity.


[1 Points] UDGHT:

!remindme 1 week


[1 Points] alfabi:

Btc laundering is not the same as tumbling. I hope you know that :-)