If every transaction that Bitcoin makes is public and anybody can follow it as BTC moves between wallets then how could one launder stolen Bitcoin?
Well quite easily apparently.
You could use a mixer.
Mixers basically ‘mix’ your coins together with the coins of other BTC holders.
You would do as follows:
Send your coins to a mixing service which is basically a central address where the stolen coins mix with ‘clean’ coins and after being mixed are virtually impossible to track.
Or you could use a Coin Tumbler.
Coin tumblers swap coins between users.
A Tumbler will mix coins which results in your BTC being combined, split and transacted many, many times.
Multiple users send their coins to the tumbler.
The coins will be mixed, then split to many addresses, mixed to small groups, mixed to large groups, sent out again but over time you would receive a number of payments close to your starting amount.
These methods are not without risk as there are some mixing and tubling services that are out and out scams.
The larger the amount to launder the longer it takes to ‘mix’ or ‘tumble’.
So if you’re looking to wash a billion or two you may need to bed in for a little while!
Uncle Bob is veteran of the crypto game. None of what is written should be taken as financial advice and before investing everyone should do their own due diligence.
Uncle Bob has a well followed crypto related twitter account and can be viewed here