Why Bitcoin’s biggest mixer walked away from ‘huge profits’
Main Idea
BitMixer, once the largest Bitcoin mixer by volume, shut down in 2017 amid regulatory pressure and darknet market crackdowns, highlighting ongoing debates about financial privacy and anti-money laundering policies.
Key Points
1. BitMixer was a centralized Bitcoin mixing service that allowed users to obscure transaction trails by mixing their coins with others, processing up to 2,000 BTC at a time.
2. The service claimed its servers were beyond regulatory reach and ensured user privacy, but it was widely used by darknet markets, leading to increased scrutiny.
3. BitMixer's shutdown followed a multinational sting on AlphaBay, part of a broader trend of high-profile mixing services like BitBlender and ChipMixer being targeted.
4. The debate around financial privacy versus anti-money laundering policies was highlighted by Bitcoin Core contributor Sjors Provoost, who argued for reforming the financial system to protect privacy.
5. Despite its promises of security, BitMixer's closure underscored the challenges faced by privacy-focused services in a heavily regulated environment.
Description
The writing was on the wall for BitMixer
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