Companies that sell bitcoins monitoring blockchains to see where you're sending your money to?

So i don't understand how exactly the blockchain is recorded but this is how I think it works. You buy from circle then send it to your wallet of choice. Now.... Circle can see where you send your bitcoins from start to finish correct? So if I send it from Circle to an online casino.. then to a DNM wallet they can see the entire transaction? I see a lot of more bitcoin sellers stating they will report you if you use the bitcoin for illegal purchases.


Comments


[9 Points] mwthink:

They have to do this as a matter of legality. Blame the laws, not the companies. They can't be linked to or seen acting as supporters of illicit activities.

They can only tell where you are sending coins based on your patterns. Stick your coins in a tumbler or something and their systems won't flag you.


[9 Points] None:

Easy. Coinbase> Electrum wallet>Electrum wallet> Market. I throw a grams tumble in there as well


[4 Points] samanthasecretagent:

How is localbitcoins handling all this? Also, when did this start? I just used lbc recently and nothing happened.


[3 Points] HairyTorBalls:

What I don't understand yet is this. Say I have bitcoins at Coinbase. I have a wallet on my system. I generate an address and send coins from coinbase to my wallet address. How can Coinbase tell where that address resides? How can they tell if the address is from my Electrum wallet or my agora wallet?


[2 Points] GoAwayThrowaway420:

just use electrum and consider you will lose 0.002 or 0.001 btc if you're cheap like me lol. problem solved.


[2 Points] Theeconomist1:

I've seen that verbiage for a while. I think mostly it's standard legalese bullshit. What's concerning though is the more active inspection by coin base. LE has turned them into investigators. Companies do have a legal responsibility to ensure they aren't unwittingly participating in unlawful behavior but this goes beyond the pale. LE must have amped up pressure on these companies.

I don't get how they'd know if a wallet is a DNM wallet. There might be things that make it similar to a tumbler since they have internal tumblers. But with say evo who change addresses with each deposit how do they know? Unless it ends up in a well known flagged address I guess. Why get so worked up over a small percentage of the drug trade?


[2 Points] None:

If that thread about the guy getting visited by the DEA has any truth to it, then I'm convinced some BTC exchanges (LibertyX was the one he used?) are either honeypots or working closely with LE. Sounds tinfoily, but if coinbase can tell you're directly sending to a DNM, wouldn't it make sense to sting an exchange and then mark people who buy BTC to keep an eye on their mail? Would require resources, but...


[2 Points] Vendor_BBMC:

They may know te first wallet is yours. After that, you could have sold the bitcoin and its nothing to do with you

  1. "They" don't monitor you
  2. They dont know who owns which wallet, which is a darknet market deposit etc. Nor do they care
  3. Drug purchasers don't get caught via bitcoin. you get arrested for having drugs, and not arrested for not having drugs.

Do Circle somehow know who you are? If so, buy bitcoins somewhere that doesn't ask you - localbitcoins.com

I don't understand why anybody would use any other place to trade bitcoin


[2 Points] fuckoffplsthankyou:

LocalBitcoins.


[1 Points] Theeconomist1:

One thing I noticed recently with coin base was how long it took for the coin to be available. I have instant buy, L2 or whatever. Usually once I buy, the coins are available for transfer within maybe 10 mins. The last time it took 6 hours! The price was locked in and showed in my coin base wallet but couldn't send it. Not sure if it was a glitch or one off. Pissed me off more than anything.


[1 Points] ZeroH0ur:

This won`t be an issue when you no longer need to convert to fiat.

Banks can`t track my cash. Why should bitcoin be different? This needs fixed or bitcoin fails.


[1 Points] None:

Think of it like this. The coins you send to Evo or Agora aren't the same ones that are sent to the vendor when you buy. Also consider that the wallet address expires and that both of those services put a lot of effort into anonymizing their bitcoin usage.


[1 Points] None:

I didn't used to tumble but ever since that post about the guy getting banned from coinbase for sending to DNM ive been paranoid. haven't made an order since but i think next time i will send from coinbase to btc-e, trade for altcoins, then back to bitcoins to dnm. Seems like enough to throw them off and it is cheaper and more trusted to me than tumblers.


[1 Points] None:

I'll let you guys know when I get caught.

Just kidding, I stopped using and I literally feel like I'm cumming all the fucking time, now. That was a fun year followed by 5 shitty ones.

I'm out.


[0 Points] letopseyturv:

Make a new address every time you make a transaction. Simple. Also send smaller transactions to the same wallet. But yes, CoinBase are starting to but VERY poorly. A guy got banned from there cuz he bought drugs on it. Apperently 2 pounds? Emailed them and still didn't unban him.


[-1 Points] CocaineNose:

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