User A -> illegal drug money -> tumbler
User B -> illegal Ponzi money -> tumbler
User C -> terrorist financing -> tumbler
Tumble - Tumble - Tumble
Tumbler -> User A = illegal Ponzi money and terrorist financing
Tumbler -> User B = illegal drug money and terrorist financing
Tumbler -> User C = illegal drug money and illegal Ponzi money
User A, B, C -> Coinbase
Coinbase = Sorry we've confiscated your bitcoins because they were blacklisted.
LOL
Quote from Bitmixer:
I'm not a criminal. Why should I mix my coins?
Virtual currency is part of the here and now, but with it comes the need to guard your wallet. BitMixers high volume bitcoin mixer keeps your identity safe by offering premium mixing service with the ability to handle even the largest bitcoin transactions.
anyone normal wants to stay anonymous
Like someone mentioned, if someone like Coinbase has a policy of investigating the origin of the Bitcoins you send and they find out they come from criminal activities then you are in trouble, even if you had NO IDEA that those coins were in Silk Road sometime ago. This really sucks and will hinder mainstream adoption. It kills fungibility. The average end user should not care about it and not have that worry on their mind. I myself avoid stuff like Coinbase because who the hell knows where the Bitcoins that you got come from? It's a joke, but I don't really see a way around this as long as the blockchain is an open ledger... any solutions?