Bitcoin mixers, also known as tumblers, allow users to obfuscate their cryptocurrency transactions. This makes it difficult to trace criminal proceeds back to a wallet robbed by hackers or ransomware gangs. Uncle Sam doesn’t like this, so he’s cracked down on mixers.
One that got hit hard was Blender, which is now sanctioned for helping Lazarus Group and other hacking gangs launder stolen virtual currency. But it’s been relaunched as Sinbad.
What is a Bitcoin Mixer?
A Bitcoin mixer is a service that helps to make bitcoin transactions less traceable. It works by jumbling up your coins with those of other users and then returning them to you in a new form that makes it difficult to determine where they came from and who they belong to.
This is important because the blockchain that records cryptocurrency transactions is publicly accessible. This means that anyone can see your transaction history if they know your wallet address. Mixers, or tumblers, are services that help to obscure the trail of your coins and therefore increase your privacy.
There are two main types of bitcoin mixers: centralised and decentralised. Centralised mixers allow you to send your bitcoins to them and then receive back different ones, whereas decentralised mixers sever any ties between your bitcoin address and real-life identity.
Using these services can be risky, however, as they can potentially be linked to illegal activities such as money laundering or tax evasion and can also be against the terms of service of some exchanges. If you are going to use a mixer, make sure you choose one that is well-established and uses advanced encryption techniques. It should also offer multiple wallet address support and randomized transaction delays to further protect your anonymity. Additionally, it is a good idea to choose a mixer that charges a small fee for its services. bitcoin blender