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by sp332
4844 days ago
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If someone buys something illegal, and the cops look up the transaction in the bitcoin network, it narrows things down to just a few wallets where the funds might possibly have originated. If they look back a few links in the chain and the find bitcoin exchange where you initially got the money, they now know that you exchanged just the right amount of money to make the illegal purchase. It doesn't take much work to put 2+2 together. |
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This can be defeated, either manually or via a tumbling service to make the link chain so huge as to be useless for evidence purposes.
Again, it's easy to link me to wallet A assuming I just buy from a service with links into the traditional financial system. It's significantly harder to prove I own any of the wallets I send money to.
>If they look back a few links in the chain and the find bitcoin exchange where you initially got the money, they now know that you exchanged just the right amount of money to make the illegal purchase.
This could be defeated by sending more than the amount required when you fund the second wallet.
Again, nobody knows that I own wallet B. Given a sufficiently plausible public exhibition on a trading site, it may look entirely like it's owned by another person outright, and if your goal is to avoid legal scrutiny, so much the better.