Ill spell it out:
Majority of DNM vendors rely on cashout via LBC.
LBC cashout methods are not anonymous, you either meet in person, give your banking info, or give your address for cash in mail. Other methods are equally risky and dont get around this. Cashing out via coinbase/exchanges is even more dangerous as your unreported income is now linked to bitcoin. Few vendors are equipped to launder funds over the table.
Feds win pascal case, show that small time btc vendors should be licensed as Money Service Businesses to the tune of $millions.
LBC coin vendors say fuck it and continue anyways, feds do coordinated stings, grab banking/mailing info and do undercover buys, coin vendors get fines and jailtime for running an unlicensed MSB that make streetdealing sentences look like a slap on the wrist.
Majority of vendors cant cashout, close shop. Markets dry up. FBI/DEA wins.
Hello? Rest of the world here? It won't mean the end of DNM's.
Only for the USA.
The UK government LOVE bitcoin. Capital gains from bitcoin are tax-exempt, and more than half of the blockchain is under the control of two UK companies - (the largest online wallet provider and the largest mining pool).
Fortunately, LBC has a truly unbeatable tumbler, and no cash goes through the site. It just provides a way of two individuals to talk to each other, and an escrow.
When the escrow is released, the person buying the bitcoin doesn't get YOUR bitcoi. He gets one from yesterday, from somebody else, that's already been tumbled.
When a person withdraws bitcoin, it doesn't come from their deposit address. It comes from one of the tumbler wallets.
LBC allows almost any payment method, or bank transfer into any account. Its not actually illegal to buy and sell bitcoins.
Vendors can tumble their earnings through bitcoin fog, and wait 6 hours.
OR they can have two LBC accounts, a fake one, and one linked to themself. Withdraw direct from the DNM to the fake name LBC trader. "You" then "buy" the bitcoin off "him" for cash, instantly tumbling it (and LBC only takes 1%, bitcoinfog 1% to 3%)
You then sell to a "100+ / 100%" pro trader. You have buy and sell trades that match, so you look like a real bitcoin trader - buying with cash, selling by bank transfer.
A vendor can create a new deposit address every time