Silk Road forums
Discussion => Newbie discussion => Topic started by: GoldenBudda on June 23, 2013, 08:07 pm
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I have been reading about people always saying they wash the bit coin they earn through multiple wallets before cashing out. Is this a must and y does it matter isn't bit coin untraceable?
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The potential risk in not tumbling right is traceability. Like if you deposited from mtgox into SR and searched the transaction, it could be possible to link it to your mtgox account. So some people like coin tumblers or laundry services. Transferring to a couple wallets first can help break the chain to you, since if done anonymously it wouldn't be possible to prove you owned a certain wallet. SR has its own tumbler built in also. I think withdrawing the BTC to cash or a bank is far more risky and difficult to do safely than depositing.
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The more steps there are between your illegal activity and your traceable, real-life self the better. But if you withdraw 36.482btc from Silk Road, and then send 36.482btc through several wallets before cashing out 36.482btc, I'd say it would be pretty obvious to an observer that you were the owner all the way along. Of course, moving it through multiple wallets gives you more scope to deny it, but if you're looking to do something like this you really need to mix them up along the way.
There used to be a service called bitcoinfog which mixed and tumbled for you, not sure if it's still operational.
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The blockchain.info wallet service has a feature called "Send Shared" that launders/mixes coins in the manner described. They are a very trusted service in bitcoinland, and only charge 0.5% fee, so I think that's the best one out there.
https://blockchain.info/wallet/send-shared