Post
Topic
Board Legal
Re: Ohio Resident Charged With Laundering $311M in Bitcoin for AlphaBay
by
jseverson
on 06/04/2020, 15:01:59 UTC
I'm not sure the law can be bothered to delineate the difference. It's the intent of the service provider rather than the needs of the users that they'll go after.

I don't deny that authorities can probably spin facts if they're motivated enough (even if mixers aren't inherently illegal), but at least in Bestmixer's case:

A mixing service will cut up a sum of Bitcoins into hundreds of smaller transactions and mixes different transactions from other sources for obfuscation and will pump out the input amount, minus a fee, to a certain output address. Mixing Bitcoins that are obtained legally is not a crime but, other than the mathematical exercise, there no real benefit to it.

The legality changes when a mixing service advertises itself as a success method to avoid various anti-money laundering policies via anonymity. This is actively offering a money laundering service.

It looks like this case also advertised itself as a way to launder money, which made it blatantly illegal on top of everything else. I don't think other mixers should be too concerned just because a random one got taken down.