{"id":430945,"date":"2020-07-16T02:00:00","date_gmt":"2020-07-16T02:00:00","guid":{"rendered":"https:\/\/wncen.com\/?p=430945"},"modified":"2024-06-11T14:05:14","modified_gmt":"2024-06-11T14:05:14","slug":"use-of-bitcoin-mixers-rocketed-2020","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/use-of-bitcoin-mixers-rocketed-2020\/","title":{"rendered":"Use of Bitcoin \u201cMixers\u201d By Darknet Entities Rocketed by 900% Last Year"},"content":{"rendered":"
A recently released report is shedding light on the evolution of Bitcoin\u2019s presence and utility on the dark web.<\/p>\n
The report reveals that those using Bitcoin to conduct transactions on the internet\u2019s underbelly are shifting their behaviors as crypto tracing software grows more advanced and as exchanges start widely requiring users to complete KYC proceedings to access fiat on\/off ramps.<\/p>\n
This comes as a few particular exchanges see a massive surge in inflows from wallet addresses associated with nefarious transactions.<\/p>\n
Users who are looking to launder their Bitcoin<\/a> \u2013 whether it be simply for privacy’s sake or because they don\u2019t want certain transactions being traced\u00a0\u2013 can do so by using mixing services on the dark web.<\/p>\n These services pool assets from a variety of different sources and then redistribute them, making it incredibly difficult to trace the exact origin of the mixed crypto.<\/p>\n Mixing pools mainly exist on the dark web and are frequently used by both buyers and sellers of illegal goods and services.<\/p>\n A recently released report<\/a> from Bitfury shows that the use of mixers is on the rise.<\/p>\n According to their data, in Q1 of 2019, a total of 790 BTC were sent to mixing services. This number spiked by 900% in Q1 of 2020, with a total of 7,946 BTC being sent to these services.<\/p>\n In dollar terms, this represents a roughly $66m increase.<\/p>\n They note that this is likely due to the widespread trend of crypto exchanges now requiring verification proceedings for users to withdraw funds.<\/p>\n Individuals and entities transacting on the dark web are likely using mixers as a buffer between their potentially nefarious activities and their spot sales on regulated exchanges.<\/p>\n \u201cFrom this analysis, it seems that exchanges with verification requirements are becoming less popular as a way to withdraw bitcoin from darknet entities, while mixers are becoming more popular for withdrawing from darknet entities,\u201d Bitfury notes.<\/p><\/blockquote>\n NewsBTC reported yesterday<\/a> that on-chain data suggests Huobi, Binance, and OKEx are the three platforms that are favored by those looking to offload crypto associated with illicit transactions.<\/p>\n One source cited within the report explained that these three exchanges received 60% of the Bitcoin<\/a> transferred from \u201chigh-risk addresses.\u201d<\/p>\nThese Exchanges are Favored by Those Moving Illicit Funds<\/strong><\/h2>\n