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Board Development & Technical Discussion
Merits 171 from 25 users
Topic OP
[Blacklist] of unreliable, 'taint proclaiming' Bitcoin services / exchanges
by
n0nce
on 05/06/2022, 13:41:18 UTC
⭐ Merited by LoyceV (42) ,klarki (33) ,ABCbits (27) ,hugeblack (16) ,vapourminer (6) ,Welsh (6) ,dkbit98 (5) ,bitmover (4) ,malevolent (4) ,DdmrDdmr (4) ,d5000 (4) ,NeuroticFish (3) ,ETFbitcoin (2) ,Pmalek (2) ,DooMAD (2) ,DireWolfM14 (2) ,BlackHatCoiner (1) ,OROBTC (1) ,FatFork (1) ,SFR10 (1) ,Hueristic (1) ,dragonvslinux (1) ,goldkingcoiner (1) ,hd49728 (1) ,JayJuanGee (1)
After many discussions in Announcing Wasabi Wallet 2.0 and elsewhere, I came to the conclusion that we need a community-curated summarized list of untrustworthy services that I call 'taint-proclaiming services'.

These services ignore one of Bitcoin's fundamental values of being fungible, usable and acceptable everywhere and anywhere. They each come up with their own arbitrary set of taint rules by which they allow themselves not only to deny your Bitcoins, but also to steal them from you and / or directly share your data with government agencies. Some people may not be aware of this, some may accept it for the convenience of the service in question, and others may prefer to stop using these services.

I'd like to encourage everyone who had such an experience or a reliable news article about something like this happening, to share it and I'll add it to the list.
For now, a few that I could find relatively quickly or remembered by memory:

|Paxos Exchange|Rejects mixed funds|Source: https://news.bitcoin.com/another-crypto-exchange-discourages-the-use-of-bitcoin-mixing-services/|
|Binance Exchange|Rejects mixed funds (Wasabi)|https://news.bitcoin.com/as-fatf-regulations-galvanize-crypto-mixing-applications-are-targeted/|
|Coinbase Exchange|Closes accounts that deposit mixed funds|[need source]|
|Gemini Exchange|Closes accounts that deposit mixed funds|[need source]|
|Wasabi 2.0 Mixer|Blacklists UTXOs by working with Chainalysis|https://blog.wasabiwallet.io/zksnacks-blacklisting-update/|

I remember there are many more such cases, but can't find web articles about them right now, so I'd appreciate any additions.