I did some checks on my wallets and found out I have several tainted coins. The AML service said most of them are fine, but a few are dirty, messing up my whole address. I thought maybe I could separate them. Let's say I have 1 BTC in address A1, I split it into two addresses A2 and A3. After that, I’d run checks on both.
Honestly, that's a terrible idea. You might even make it worse. Coin control is way more effective for separating tainted coins. If you keep splitting coins, the new UTXOs with the risky coins will still look suspicious. Blockchain analysis connects the dots, and separating doesn’t help.
Exactly, splitting just links those coins together. The moment you move them, you're still tied to the dirty wallet. AML tools look at behavior too, so they can flag you if they see patterns that seem fishy. In the end, you might be stuck with all coins still tainted.
Some services only check the first transaction and don’t care about the rest. But the whole concept of measuring how tainted a coin is feels sketchy. Just be careful sending those coins to places where they could get frozen.
Everyone can end up with tainted coins. We can't control where coins from exchanges or vendors come from. It's like we all have to deal with some tainted sats. By the way, anyone checked for any rare satoshis?
I think splitting your coins is risky now because of all the tracking tools used by major exchanges. They follow the money trail through many wallets to mark any linked wallets as dirty. Your clean coins could easily become tainted because of this.
But really, if your 1 BTC came from A1, and that’s flagged, then any new address will also be flagged. Maybe just leave it alone; they keep changing what they look for anyway. Have you compared results from other AML checkers?
Is there a chance that all coins on A1 are from a single UTXO? That would complicate things. I suggest checking coin control. If they are all from the same UTXO, then you can’t split them up. Maybe even consider using a service that swaps them for XMR.
Don’t stress too much unless you’re planning to use a KYC service. Honestly, unless the coin is from a big exchange, almost everything in circulation is tainted. Just avoid playing their game.
In the long term, regulators will probably push everyone to KYC platforms. So yeah, most of us are gonna run into the AML problem eventually. Seems like the goal is tracking every owner of every wallet.
Could you explain how you ended up with these tainted coins? I’m curious because I haven’t had any issues. Most people only hear about tainted coins but don’t know much more.
I get coins mostly from gambling and mixers. I’ve heard they make coins ‘tainted,’ but I’ve never had issues cashing them out. Unless you’re using a KYC exchange, I wouldn’t worry too much.
Yeah, what’s the point of owning BTC if you're following the regulators’ rules? It defeats the purpose of crypto, which is about freedom. If people want KYC, they might as well just stick to banks.
So, the best way to keep your coins clean is to generate a new address each time you receive them? But that means any wallet that later receives those coins could also end up tainted.
There's no clear standard for AML checks, and if you don't know how they work, you'll probably just get hit with unnecessary fees. Best bet is using a platform that doesn’t do AML checks. No such thing as ‘clean’ BTC anyway.
I didn’t think about it this way before, but I have an address with a bunch of transactions that might be tainted. I’ll try running those checks after moving the coins as you suggested.
You shouldn’t worry if the blockchain analysis isn’t super reliable or advanced. As long as you earned your coins honestly, they really shouldn’t confiscate them.
Honestly, what you’re suggesting is pointless. You can’t really filter out tainted coins easily. Your best bet is just using exchanges that don’t care about coin origins.
For real, spreading your coins across different wallets won’t help with tracing tainted coins. Exchanges will still track all your wallets. Best to report to the exchange for a clearer record.