Edit: title should be "How can a Bitcoin address be identified as a DNM wallet by third parties?"
The common wisdom passed around is that you should never send BTC directly to a DNM wallet, instead needing to go through the trouble of passing the coins through several intermediaries and/or tumbling. While this is definitely best practice for multiple reasons, I have never seen anyone provide any explanation for how a service like Circle or Coinbase knows if the coins made their way to a DNM.
This is a recurring question of mine so I'm wondering if anyone can offer any sort of ideally evidence-based answer.
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